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 = (%)