https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:careers-and-education/x647545bbd61df4a7:education-as-investment/v/roi-of-education 2026-05-19T15:01:06.510424772Z ROI of education Calculating education return on investment (ROI) involves dividing the net benefit of a degree by the total investment required. One approach focuses strictly on cash flows, while a more comprehensive method incorporates opportunity costs like foregone wages during years of study. Accurate long-term evaluations should further consider factors such as wage growth, loan interest, and the time value of money. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/2034b135-5a86-46da-a5cf-afa23f8c5017_1280_720_base.png ROI of education Calculating education return on investment (ROI) involves dividing the net benefit of a degree by the total investment required. One approach focuses strictly on cash flows, while a more comprehensive method incorporates opportunity costs like foregone wages during years of study. Accurate long-term evaluations should further consider factors such as wage growth, loan interest, and the time value of money. https://cdn.kastatic.org/ka-youtube-converted/OJfPASqhLUo.mp4/OJfPASqhLUo.mp4 386 Education as investment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:careers-and-education/x647545bbd61df4a7:education-as-investment/v/cost-vs-career-comparison 2026-05-19T15:01:06.510424772Z Cost vs career comparison To determine if a four-year degree is financially worthwhile, one can use algebra to compare immediate employment earnings against the costs of education followed by a higher salary. This calculation accounts for both tuition expenses and the opportunity cost of lost wages during the years of study. Sal Khan video https://cdn.kastatic.org/ka_thumbnails_cache/20a50c3e-53ab-4bda-b611-ac97d319e049_1280_720_base.png Cost vs career comparison To determine if a four-year degree is financially worthwhile, one can use algebra to compare immediate employment earnings against the costs of education followed by a higher salary. This calculation accounts for both tuition expenses and the opportunity cost of lost wages during the years of study. https://cdn.kastatic.org/ka-youtube-converted/dGaILHaNPbc.mp4/dGaILHaNPbc.mp4 285 Education as investment https://www.khanacademy.org/math/financial-mathematics-tx-teks/x647545bbd61df4a7:careers-and-education/x647545bbd61df4a7:education-as-investment/e/evaluating-educational-costs 2026-06-29T19:40:46.038950604Z Evaluate educational costs Practice comparing compensation earnings and costs of postsecondary education, and calculating ROI from completing a desired postsecondary education program Elvira Valdez exercise