Grad School ROI Calculator
Compare the total cost, lost wages, and future salary premium of MBA, master’s, JD, MD, and PhD programs to decide if grad school is worth it.
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Graduate School ROI Snapshot
Total Program Investment
$342,315.814
Tuition, living costs, interest, and lost wages while studying
Net Lifetime Benefit
$2,804,702.05
Incremental earnings over your baseline career path
ROI
819%
Net benefit ÷ total investment over 30 years
Break-Even
Year 12
Approximate age 40
Earnings Projection: Graduate Path vs Baseline
Investment Breakdown
Loan Snapshot
Financed amount: $110,600 (70% of direct costs)
Monthly payment: $1273 for 10 years
After-Tax Premium
Effective annual premium after tax: $79,724
Break-even faster if you negotiate higher post-grad offers.
Time Horizon
Years modeled: 30
Projected retirement age: 58
Adjust years if you plan to work longer post-graduation.
Customize Your Program
Program Preset
Program Costs
Post-Graduation Outlook
Decision Playbook
Go For It When...
- Your post-grad salary premium is $30k+ and employers help with tuition.
- You're targeting roles that explicitly require a graduate credential.
- You can keep at least 50% of your salary by choosing part-time/online formats.
Reconsider If...
- Break-even exceeds 8-10 years even after adjusting for loan forgiveness or stipends.
- You would graduate with debt-to-income ratios above 1.0.
- The salary premium is under $15k and you already have strong experience.
Ways to De-Risk
- Negotiate employer sponsorship or sign-on bonuses tied to the degree.
- Lock in lower tuition via in-state programs or accelerated tracks.
- Model switching to hybrid formats after Year 1 to keep income flowing.
📚 Tax Rate Sources
Ordinary income is taxed at graduated rates from 10% to 37% based on filing status and income level.
→ Source: IRS - Federal Income Tax Rates and Brackets
• Short-term capital gains (assets held ≤1 year): Taxed at ordinary income rates (10-37%)
• Long-term capital gains (assets held >1 year): 0%, 15%, or 20% based on income
→ Source: IRS Topic 409 - Capital Gains and Losses
State income tax rates vary from 0% (no state income tax) to 13.3% (California top rate).
→ Source: Tax Foundation - State Income Tax Rates
Qualified dividends are taxed at the same preferential rates as long-term capital gains (0%, 15%, or 20%).
→ Source: IRS Topic 404 - Dividends
Note: Tax laws change frequently. These rates are current as of 2025. Always consult a tax professional for personalized advice.
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⚠️ Important Disclaimer
This Grad School ROI Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.