Compare one educational program with a no-program career baseline using incremental earnings, payback, and net present value.
Education ROI Inputs
Results Overview
Analysis compares lifetime earnings trajectories with and without the program.
Cumulative Income Delta vs Cost
- Cum. Income Advantage
Annual Income: Baseline vs Post-Education
- Baseline
- PostEdu
Yearly Earnings Comparison
| Year | Baseline Income | Post-Education Income | Annual Delta | Cumulative Delta |
|---|---|---|---|---|
| 1 | $50,000.00 | $0.00 | -$50,000.00 | -$50,000.00 |
| 2 | $51,500.00 | $0.00 | -$51,500.00 | -$101,500.00 |
| 3 | $53,045.00 | $72,000.00 | $18,955.00 | -$82,545.00 |
| 4 | $54,636.35 | $74,880.00 | $20,243.65 | -$62,301.35 |
| 5 | $56,275.44 | $77,875.20 | $21,599.76 | -$40,701.59 |
| 6 | $57,963.70 | $80,990.21 | $23,026.51 | -$17,675.08 |
| 7 | $59,702.61 | $84,229.82 | $24,527.21 | $6,852.13 |
| 8 | $61,493.69 | $87,599.01 | $26,105.32 | $32,957.45 |
| 9 | $63,338.50 | $91,102.97 | $27,764.47 | $60,721.92 |
| 10 | $65,238.66 | $94,747.09 | $29,508.43 | $90,230.35 |
| 11 | $67,195.82 | $98,536.97 | $31,341.15 | $121,571.50 |
| 12 | $69,211.69 | $102,478.45 | $33,266.76 | $154,838.26 |
| 13 | $71,288.04 | $106,577.59 | $35,289.55 | $190,127.81 |
| 14 | $73,426.69 | $110,840.69 | $37,414.00 | $227,541.81 |
| 15 | $75,629.49 | $115,274.32 | $39,644.83 | $267,186.64 |
| 16 | $77,898.37 | $119,885.29 | $41,986.92 | $309,173.56 |
| 17 | $80,235.32 | $124,680.70 | $44,445.38 | $353,618.94 |
| 18 | $82,642.38 | $129,667.93 | $47,025.55 | $400,644.49 |
| 19 | $85,121.65 | $134,854.65 | $49,733.00 | $450,377.49 |
| 20 | $87,675.30 | $140,248.84 | $52,573.54 | $502,951.03 |
Key Insights
- Payback year tells you when the cumulative earnings advantage covers program cost. Baseline earnings already represent income forgone while studying.
- Starting salary and raises drive most of ROI—small changes compound over decades.
- Consider risk: employment rates, field demand, and geography can shift realized outcomes.
This is a simplified model and not financial advice. Taxes not included.
Methodology & Formulas
- Baseline income trajectory:
Base_y = Base0 · (1 + g_b)^{y-1} - Post-education trajectory:
Edu_y = (y \le T ? 0 : Edu0 · (1 + g_e)^{y-T-1}) - Annual delta:
Δ_y = Edu_y − Base_y - Cumulative delta:
Cum_y = Σ(t=1 to y) Δ_t - Payback year: first
ywhereCum_y ≥ ProgramCost - NPV:
NPV = -ProgramCost + Σ(y=1 to H) Δ_y / (1 + disc)^y
How to Use
- Enter program cost and length; baseline salary represents the earnings given up during study years.
- Enter baseline vs post-education starting salaries and raise rates.
- Choose a horizon and discount rate; review payback year and NPV.
- Use charts to compare income trajectories and cumulative advantage.
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