Worked examples / Investing in something
A four-year degree: $100,000 in tuition, $30,000 a year of pay given up, for $25,000 a year more afterwards, if it works out.
It has paid for itself by year 28.
This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.
How this answer was worked out| Total cost | $100,000 + $30,000 x 4 = $220,000 |
| Average gain per year | 60% x $25,000 = $15,000 |
| Simple payback | 14.7 years |
| Brought back, discounted at 3% | $308,058 |
| Net | $88,058 |
Every formula is written out on the formulas page.
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