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Return on Investment vs

Return on Education

Judging the impact of education solely by the income it generates post-graduation fails to capture its true essence. 

Yet, many define the success or failure of one's education based on Return on Investment (ROI).

Enter the concept of Return on Education (ROE), which enriches the ROI by incorporating the Value of Education. This value spans across five dimensions, recalibrating the results of the educational journey:

  • Even a modest income can yield a satisfactory ROE if the educational value exceeds expectations (such as for entrepreneurs or those joining NGOs).

  • Conversely, a significant increase in salary may result in a lower ROE if the educational experience falls short of expectations.

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The Value of Education

5 drivers that capture the non-financial value of education.

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Connections

Connections refer to the network you build on campus with all relevant stakeholders.
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Culture

Culture refers to the campus culture, the community, and the sense of belonging. 
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Experience

Experience refers to the journey beyond academics you go through during your studies.

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Purpose

Purpose refers to the ability of the academic institutions to guide you find your purpose. 
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Skills

Skills refer to adequate skills development during the academic journey.

 

RoE Calculator

See the REAL return of the learning journey!

  1. Add the tuition fees, the current income, and the time frame for the calculation. 
  2. Evaluate the education received over 5 dimensions
  3. Click the Get ROE button, and see the Return on Education!
  • Tuition Fees
  • Income
  • Time since graduation (years)
  • Annualised ROx
  • ROI
  • Return on Education (ROE)
  • Value of Education
  • Connections
  • Culture
  • Experience
  • Purpose
  • Skills
    Get ROE

DisclaimerThis calculator is not a scientific, research-based approach to the value of education. It should be seen as a discussion starter for a monetary expression of the return on investment of an educational product.  

In times when the value of education is in doubt, this approach might stir the discussion beyond the salary earned after graduation. Feel free to share your thoughts on the LinkedIn article above or e-mail hello@edualto.com.