Have you ever calculated return on your investment to grad program?

[Laura]

Anyone has ever considered going and paying for a graduate degree in US as an investment case?
If yes, has anyone of you really calculated the return on that investment based on objectives, cost, cash inflow, how do you finance it, risk and other factors?
Example
Objectives: career goal& plan

Cost( cash outflow)
-The initial investment for tuition fee, living cost
- The opportunity cost for being full-time student for 1.5 years
-The opportunity cost for not taking an alternative way (e.g instead of going to us, go to europe with lower tuition fee, or instead of going to us, try to get a scholarship which will reduce tuition cost, but then will have to compromise on school reputation etc...

Return( cash inflow)
- Knowledge learned
-Projected income & growth in career
-Intangible return: Growth in personalities, living experience, growth in network, friendship etc...

How will you finance your investment?
By equity( e.g your saving) or by debt ( loan) or both? What is the interest rate on debt? What is the oppotunity cost on your equity( e.g if you don't spend that for your tuition fee, can you invest it elsewhere etc..)

Risk

Has anyone of you conduct such kind of analysis to see if going for an mfe or master degree is a sound investment?
I know my idea might sound funny. Some might think the cost amount might not be deserved this kind of quantitative analysis, or it's hard to project the cash inflow etc...However utimately going to grad program is a kind of investment and I don't want it to be solely speculative. It might not need a great due-diligent like millions-dollar deals. Some basic analysis & calculation might help.

If you have done this kind of anysis before, it would be great if you can share with us here. Eventhough such analysis is highly subjective, I guess it still can benefit everyone who is considering going for a grad degree. Feel free to voice out if you think my idea is hilarious and this kind of analysis is wasted of time

(I spent my lunch break to time this post on my phone, haha)

 

[Jonathan B]

Not quite in terms of a degree, but I did calculate the marginal benefit involving work and school and realized if by my midterm 1st semester sophomore year, I reduce my work day by 1 day for the remainder of the semester I would get a 4.0. I however realized this a few weeks prior to finals and managed a 3.8 because I couldn't give work proper time to take that one day off. I based the marginal benefit off my work hours and course load the prior semester where I had gotten a 4.0 and tried basing it off that as best as I could. I feel like it probably wasn't too far off either.

 

[Keith Tan]

A pursuit of higher learning used to be for the enlightenment of advanced knowledge.
Now it seems like a long-term security which everyone trades.
Go if you can afford it.

 

[Ken Abbott]

A pursuit of higher learning used to be for the enlightenment of advanced knowledge.
Now it seems like a long-term security which everyone trades.
Go if you can afford it.

Better yet, get a job and have your employer pay for it. Then the return is infinite...

 

[Laura]

Thanks Keith Tan. I agreed with you. I should have not had this idea.
Definitely money is important. However, making a decision on education (and a new opportunity), the cost factor should not been focused that much.
I had the above thought when seeing all my saving for the past 3 years will be gone shortly. Now, I'm lauging at my 1st post.