Value of College Degree Calculator

Using our online education value calculator, you can easily estimate the added value of a college degree, high-school degree, or professional education. The calculator uses a marginal value calculation to determine the additional value of education over not having that education.

College Value Calculator

How to use the value of education calculator?

Our online education value calculator is designed to help you estimate the added value of a college degree, high-school degree, or professional education. The calculator takes into account the cost of tuition, the expected income from your career with and without the education, and the length of your working years. Additionally, you can also input information about any loans you may take out to cover the cost of tuition and related expenses, as well as any income you may earn while studying.

To use the calculator, begin by inputting your expected income without the education you are considering, as well as your expected income after completing the education. Consider factors such as the ease of finding employment and the risk of unemployment after graduation. Next, input your current age and your expected retirement age to determine the length of your career in both scenarios.

Next, input the cost of tuition, including any fees or additional expenses such as room and board. If you expect to receive financial aid or scholarships, you can adjust the cost accordingly. Then input the duration of your studies and any loans you may take out to cover the cost of tuition and related expenses.

The calculator will output the marginal value of the chosen education, the cost of the education, and your expected career income with and without the education. If you have entered loan information, you will also see the monthly payments required to repay the loan. The calculator is useful for estimating the value of a college degree, high-school degree, or ongoing education.

Main assumptions

The calculator also assumes that the duration of studies entered is accurate and that the user will not drop out or take longer to complete the program. It also assumes that the user will not take any breaks or change careers during their working years, and that the cost of tuition entered is the final and complete cost, including any additional fees or costs.

Additionally, it assumes that the user will not receive any additional financial aid or scholarships, and that the loan interest rate entered is fixed and does not change over time. Users should keep in mind that these assumptions may not apply to their specific situation and should consider these factors when using the calculator.

The benefit of knowing the marginal value of your degree

By understanding the marginal value of your degree, you can gain insight into the financial value of the investment you are making in your education. This will help you determine if the cost of tuition, fees, and opportunity costs associated with attending college or pursuing higher education are worth the potential increase in income or other benefits. With this information, you can make an informed decision about whether or not a specific degree or program is a good investment for you, both financially and in terms of the time and effort required to complete it.

This is particularly important in case you need a loan to cover your tuition fees. While paying from own pocket for a degree of little value is bad, it is at least less risky while if you take a loan and are for some reason unable to pay it back on schedule you can face financial ruin, especially given that in some jurisdictions one can’t default on their student loans (e.g. the USA as of 2023).

Obviously, what you get is an estimate, a prognosis, nothing more. Your actual return on an educational investment will depend on wise money management, wise career choices after graduation and backing up your diploma with discipline and strong work ethic.

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