Work out degree payback period instantly with clear inputs, formula shown and shareable results.
The true cost of a full-time degree is tuition plus the earnings given up while studying, and the foregone element often exceeds the fees. Discounting the salary premium is essential over a payback period measured in years rather than months.
Total investment
Investment = Degree cost + Foregone earnings
Discounted payback
The year in which cumulative discounted salary premium equals the total investment
Because two years out of the labour market is a real cost that shows up in lifetime earnings, and ignoring it makes every degree look better than it is.
Not necessarily. Non-financial returns — career optionality, network, sector switch — are frequently the actual reason and are not captured here.