Enter the lifetime earnings with education (\$), the lifetime earnings without education (\$), and the total cost of education (\$) into the Return on Education Calculator. The calculator will evaluate and display the Return on Education.

## Return on Education Formula

The following formula is used to calculate the Return on Education.

ROE = (LEE – LEWE) / C * 100

• Where ROE is the Return on Education (%)
• LEE is the lifetime earnings with education (\$)
• LEWE is the lifetime earnings without education (\$)
• C is the total cost of education (\$)

## How to Calculate Return on Education?

The following example problems outline how to calculate Return on Education.

Example Problem #1

1. First, determine the lifetime earnings with education (\$).
• The lifetime earnings with education (\$) are calculated to be : 1,500,000.
2. Next, determine the lifetime earning without education (\$).
• The lifetime earning without education (\$) is measured to be: 1,000,000.
3. Next, determine the total cost of education (\$).
• The total cost of education (\$) is found to be: 200,000.
4. Finally, calculate the Return on Education using the formula above:

ROE = (LEE – LEWE) / C * 100

The values given above are inserted into the equation below and the solution is calculated:

ROE = (1,500,000 – 1,000,000) / 200,000 * 100 = 250.00 (%)

Example Problem #2

The variables needed for this problem are provided below:

lifetime earnings with education (\$) = 2,000,000

lifetime earnings without education (\$) = 1,000,000

total cost of education (\$) = 150,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

ROE = (LEE – LEWE) / C * 100 = (%)