Grad School ROI Calculator
Before You Apply, Run the Numbers
Grad school is either the best financial investment you'll ever make or an expensive credential that takes 15 years to pay off; depending entirely on your specific situation. This calculator helps you figure out which one. Plug in your numbers, pick your program type to load realistic defaults, and adjust until the inputs match your actual situation. The verdict at the top will tell you where you land.
Grad School ROI Calculator
Is graduate school worth it financially? Model the full cost, opportunity cost, salary premium, break-even, and lifetime earnings -- with a separate score for the non-financial case.
Program Type
Defaults are editableSelecting a program type loads typical values for tuition, duration, and salary boost. Every input can be overridden to match your specific program and situation.
PhD notePhD programs typically come with a stipend (~$28-35k/yr) and waived tuition. The opportunity cost is real but tuition cost is near zero. Post-PhD salary depends heavily on whether you enter academia or industry.
MD/DO noteMedical school includes a residency period (3-7 years at ~$60-80k salary) before reaching attending salary. The model accounts for this extended timeline to full earning potential.
Your Situation
Current salaryYour pre-grad school annual salary. This drives opportunity cost -- every year in school is a year of this salary foregone, plus lost investment growth on that money.
Current ageUsed to calculate career years remaining (to age 65) and your break-even age. The earlier you go to grad school, the more years you have to recoup the investment.
Salary growth rateAnnual salary growth rate post-graduation. Higher growth compounds the premium over your career. Typical professional roles: 3-5%. High-growth fields or early career: 5-8%.
Program Costs
Annual tuitionTotal annual tuition and fees. Top MBA programs: $60-80k/yr. Law schools: $40-65k/yr. Medical: $35-65k/yr. State school masters: $15-30k/yr. Private: $35-55k/yr.
Annual living costsTotal living expenses while in school. This includes rent, food, transportation, and health insurance. Major city: $25-35k/yr. Lower cost area: $18-25k/yr.
Scholarships / stipendAnnual aid received -- scholarships, grants, employer tuition reimbursement, or PhD stipends. This directly reduces your net cost and loan burden.
Post-Graduation
Expected starting salaryYour first-year salary after completing the degree. Be realistic -- use median salary data for your specific program, not top-of-range outliers. Most grads start at median, not at the top.
Investment return rateThe return you could have earned by investing the money spent on school instead. This is the true opportunity cost of the degree. Typical: 6-7% for a diversified portfolio.
Tax rateYour effective (not marginal) tax rate. Used to convert gross salary differences to after-tax purchasing power. Typical: 22-28% for most professionals.
Non-Financial Factors
Career necessityHow required is this degree for the career you want? A JD is mandatory to practice law. An MBA is optional for many management roles. Rate this honestly -- it heavily affects the overall verdict.
Network / prestige valueIn some fields (finance, consulting, law) the specific school brand opens doors that are otherwise closed. In others (tech, startups) it matters far less. Rate for your specific field and goals.
Personal fulfillmentGenuine desire for the education, intellectual growth, or credential -- separate from the financial return. A degree you deeply want has non-monetary value that a financial model cannot capture.
Net Present Value of Degree
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lifetime earnings premium minus total investment cost
Calculating...
Total investment
nominal: tuition + living + foregone salary
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PV of investment
discounted at your opportunity cost rate
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Out-of-pocket cost
tuition + living - aid
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Opportunity cost
foregone salary while in school
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Break-even
years after graduation
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Break-even age
your age when paid back
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Annual salary premium
after-tax extra per year at graduation
Estimated total loans
out-of-pocket cost minus savings used
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Monthly loan payment
10-yr standard repayment
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Debt-to-income ratio
monthly payment / gross monthly income
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Non-Financial Case
Career necessity
Network / prestige value
Personal fulfillment
With grad school
Without grad school
Break-even point
How to read this: NPV and break-even are calculated on discounted after-tax cash flows (discount rate = your investment return rate). Total investment shown is the nominal undiscounted sum for reference. DTI uses gross monthly income (industry standard). Loan estimates assume 6.5% federal rate, 10-year standard repayment, and that all out-of-pocket costs are borrowed. Disclaimer: Results are estimates based on your inputs and standard financial modeling. Actual salary outcomes vary significantly by school, location, field, and individual performance. Loan amounts assume all out-of-pocket costs are borrowed. This calculator is for educational purposes and does not constitute financial or career advice.