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 = (%)