Understanding the ROI of International Education with GradRight

When students and families plan for international education, they focus on the dream—top universities, global careers, and a better life. But it is just as important to ask a practical question: Is it worth the cost?

This is essentially a difficult question, and data analysis alone is likely to fall short of a universal answer.

To help answer this, the Foundation for Research on Equal Opportunity (FREOPP), a non-profit, non-partisan think tank in the United States, published a detailed white paper titled “Does College Pay Off? A Comprehensive Return On Investment Analysis.”

The report shows that students who choose degrees in engineering, computer science, or nursing tend to earn far more over a lifetime than those who choose most liberal arts programs.

In fact, the subject you choose matters more than the name of the college. That means picking a high-ROI course is often better than choosing a “big name” university.

Another powerful finding is how scale can increase impact.

For example, Chamberlain University offers a nursing degree with an ROI of around $842,000 and nearly 36,000 students enrolled. That creates over $30 billion in total returns. This shows how accessible, in-demand programs can change many lives at once.

But not all programs pay off. 

About 43% of master’s degrees fail to recover their costs. The average ROI is only $50,000. For MBAs, the numbers are also mixed. While a few top programs offer high returns, 39% of MBAs lose money.

The message is clear: thinking about the ROI of studying abroad helps you make smarter decisions. It helps you treat international education as an investment—one that should be planned with care. The value of studying abroad is real, but it depends on the choices you make.

What is ROI in the context of international education?

Return on Investment (ROI) is a simple idea: what you get back compared to what you put in. But when it comes to international education, the calculation becomes more complex.

You must think carefully about how ROI fits into the bigger decision—Which university is right for me?

To make sense of the ROI of education, you should ask a few key questions first:

What is the time horizon?

A degree may not give big returns in the first year, but may double your earnings after 10 years.

How do you value non-financial factors?

Studying abroad brings more than money. Cultural exposure, personal growth, and global networks are real benefits. At the same time, you also give up time, local job experience, and sometimes peace of mind. These are opportunity costs.

How should ROI be interpreted?

Sometimes, a low-cost degree that leads to a stable job gives a better ROI than an expensive degree from a top-ranked university.

For example:

A QS top-5 university may cost ₹1.2 crore and lead to a ₹60 LPA salary in 3 years.

• A mid-tier (#495–500) university may cost ₹40 lakh and lead to ₹25 LPA in the same period.
• The first gives prestige and high earnings, but also high debt. The second offers quicker recovery and less pressure.
• ROI must be read with context—your risk appetite, goals, and financial situation.
  

Once you know how you will define ROI, it becomes a helpful tool. You can compare universities, understand trade-offs, and make confident choices.

Also Read: Study abroad Explore top Universities Abroad

How to calculate the ROI of studying abroad?

When you think about studying abroad, it is natural to ask, “Will it be worth it?” The best way to answer that is by calculating the Return on Investment (ROI). ROI helps you compare what you spend versus what you gain, both financially and in other ways.

A simple formula for ROI is:

ROI (%) = [(Total Earnings – Total Costs) ÷ Total Costs] × 100

This gives you a percentage that shows how much value you gain for every rupee or dollar spent.

The Costs

Financial costs are the most obvious:

• Tuition fees
• Living expenses (rent, food, transport)
• Flights, visa, and insurance
• Interest on education loans

But non-financial costs matter too:

• Time away from the job market (lost salary)
• Stress of adapting to a new country
• Delayed entry into full-time work or family life

All of these make up the true cost of your investment.

The Earnings

Earnings include:

• A higher salary after graduation
• Faster career growth or access to global job markets
• More options to switch industries or roles

Non-financial rewards also matter:

• Personal growth, independence, and confidence
• International exposure and cultural awareness
• Networks that open up global opportunities

Let’s say you plan to do a 3-year postgraduate degree in the U.S.

• Total cost (tuition, living, loan interest): ₹85 lakh
• Expected salary in 3 years post-graduation: ₹1.2 crore
• Net gain: ₹35 lakh
• ROI = (35 ÷ 85) × 100 = ~41%

Now compare that with someone who studied in a lower-cost European country and earned ₹80 lakh in the same period after spending ₹40 lakh. Their ROI is 100%—a much higher return.

This shows that study abroad ROI is about how much you gain relative to what you spent.

So, a smart study abroad cost-benefit analysis goes beyond brand names. It looks at data. It asks:

• Will this degree pay for itself in 3 to 5 years?
• Does it open doors in the job market I want?
• Are there more affordable programs with similar outcomes?

The more honestly you answer these questions, the better your decision will be.

Key factors influencing ROI in international education

Several key factors shape the return on investment for study abroad. Here are the most important ones.

Career Outcomes and Salary Expectations

Your earning potential depends on the field you study and the university’s track record in that field.

For example:

• Graduates from Carnegie Mellon’s computer science program earn an average starting salary of over $120,000 per year.
• In contrast, liberal arts graduates from many lower-ranked colleges may start at $40,000–$50,000.

That gap matters. Even if tuition is high, a high-paying job shortens your payback period and improves your study abroad tuition ROI.

Tip: Look for programs that share employment rates and median salaries of recent graduates. Use GradRight’s university-search platform to compare them.

Scholarships and Financial Aid

Scholarships reduce your upfront cost.

This obviously means your education investment outcomes improve. For example, if you receive a $20,000 scholarship on a $60,000 tuition, you pay only 2/3 of the original cost. This also means a lower study abroad loan with lower interest expense.

Tip: Apply early and apply wide. Apply to universities that offer American need-based scholarships. You can ask the GradRight expert for lesser-known scholarships for that. Write to GradRight at activate@GradRight.com.

High-Demand Fields Offer Better ROI

Certain degrees are known to deliver higher returns on investment. Mostly, these degrees are in fields like data science, artificial intelligence, engineering, finance, and healthcare. Particularly in the USA, tech jobs are likely to grow by 15% over the next 10 years, as per data from the Bureau of Labor Statistics.

Work Opportunities During and After Studies

Internships and part-time work can reduce your cost and add to your experience. For example, in Canada and Australia, a student can work part-time during term and full-time during breaks. Also, post-study work visas allow graduates to work for up to three years after the degree is complete.

Networking and Skill-Building

Networking and skill-building activities outside the classroom are very important, even towards your ROI.

For example, if you are a participant of student clubs, volunteering groups, and internships, you can build a lot of skills. In fact, many students at top USA and UK schools get their jobs through alumni referrals and industry networking events

Post-Graduation Planning

Where you live after your graduation affects your ROI. If you stay abroad, it means you get higher pay, faster growth, and better job options. If you return to India, you may earn anything between ₹15,00,000 to ₹20,00,000 per annum even after spending close to $80,000 on your U.S. Master’s graduation.

So it is clear that if your decisions are smart before and during your degree, then you can greatly improve your study abroad ROI.

Comparing ROI across countries and universities

Every country has a different approach to international education delivery. These differences can strongly affect your return on investment on your study abroad program

United States

In the USA, top-ranked universities offer you very high earning potential, particularly in STEM fields, but the tuition is very expensive. A 2-year master’s degree can cost between ₹70–80 lakhs. However, the starting salaries are about ₹60,00,000 per annum in certain business fields, so your study abroad ROI can still be strong.

Canada

The tuition costs in even the best Canadian universities are moderate, and your post-study work opportunities are very good. The immigration policy is comparatively more welcoming than the USA, and there is a growing demand in healthcare.

Germany

Public universities in Germany charge very little for international students in engineering and applied sciences programs. The education investment remains low, but the returns are solid, particularly if you are open to working in the European Union after graduation.

United Kingdom

In the UK, degrees take less time compared to their counterparts in Australia, Canada, and the USA. For example, one year for a master’s and three years for a bachelor’s. This can reduce your overall cost because you only have to bear the cost of living for a reduced duration.

Course ROI Matters More Than Country or College

Here is an example: a nursing degree from Chamberlain University has an ROI over $842,000 even though it’s not very highly known globally. This is just one of the hundreds of similar examples. So, your choice of a country matters, but your ROI of education depends more on the specific course you choose.

Data from FREOPP’s research shows that engineering and computer science programs deliver the highest ROI, sometimes even exceeding $1,000,000 in lifetime returns for students. 

In contrast, over 50% of degrees in visual arts, music, and philosophy show a negative ROI even when they’re offered by reputed institutions.

Clearly, evaluating ROI at the course level is not easy. You need access to:

• Course-level salary outcomes
• Tuition and living costs
• Visa and work options
• Loan interest and repayment estimates

Doing this manually is difficult. That’s why GradRight’s university selection tool is designed to help. It uses verified data, including:

• Historical salary trends
• Cost breakdowns
• Work visa policies
• Global and subject-wise rankings
• Fitment to your academic profile

With so many variables at play, the smartest way to plan your international education is to focus less on reputation—and more on results. Let the data guide your decisions.

Also Read: How to find the best University to study abroad

Maximizing ROI: How to choose programs that offer high returns?

You can use the following strategies to make better decisions and get more value out of your investment in your education:

Research Career Outcomes

Always look at what past graduates are doing. For example, graduates of Georgia Tech’s Master’s in Analytics report an average starting salary of $100,000+. In comparison, many humanities programs will offer you less than half that.

Leverage Scholarships and Financial Aid

A student who receives a $20,000 grant at NYU gets a huge head start in their journey towards a massive ROI. This is just one of the many examples of financial aid opportunities available for students.

Select High-Demand Fields

The global demand for roles in AI, data science, cyber security, nursing, and clean energy is increasing. In the US and Canada, these fields show a job growth of anything between 10% to 20% annually.

Make The Most of Work Opportunities

In countries like Australia and Germany, international students can work part-time during their studies and full-time during breaks. A student earning $15 per hour part-time in Canada can recover between ₹6–8 lakhs per year in living expenses.

Network and Build Skills

Alumni ties to getting a job at INSEAD: over 35% of MBA graduates report getting jobs through alumni networks. So, build your connections because it raises your employability and your ROI.

How else can GradRight help optimize your educational investment?

GradRight offers you many tools and services that can help you get the most return on your investment in studying abroad. Here is an overview:

Use GradRight to Choose Courses Based on ROI, Not Just Reputation

GradRight’s university selection tool uses real-world data to match students with programs based on career outcomes, tuition fees, employability, and financial value.

You can:

• Compare salary outcomes and tuition costs across courses.
• Access alumni reviews and data-driven ROI insights.
• Prioritize high-value degrees in your budget range.

This is the most effective way to find programs that offer strong study abroad tuition ROI.

Use GradRight to Lower the Cost of Your Education Loan

GradRight’s loan-search tool allows students to compare loan offers and use reverse bidding to get the best rates.

You can:

• Reduce your total borrowing cost.
• Shorten your loan repayment period.
• Increase your post-study financial freedom.

This directly improves your education investment by minimizing debt and EMIs.

GradRight Webinars: Hear Directly from Universities About Program ROI

GradRight’s expert-led webinars and masterclasses feature university reps, alumni, and financial advisors. These sessions often include:

• ROI-focused discussions on specific programs.
• Job placement data shared by admissions officers.
• Live Q&A to clarify your career and financial concerns.

Tip: Ask about average salaries and placement records during these webinars to make informed decisions.

Exclusive Scholarships: Lower Your Investment, Raise Your ROI

GradRight offers curated and exclusive scholarships for Indian students. Scholarships reduce upfront cost, improve study abroad ROI, and reduce dependency on loans.

You can write to grad@GradRight.com to explore what you qualify for.

GradONS: Save on Living Costs and Improve Practical ROI

GradONS helps with Forex, travel cards, and student accommodation. These services reduce living costs and ensure smoother transitions—important for improving value of studying abroad beyond tuition fees alone.

InsureRight: Avoid Unexpected Health Costs

InsureRight helps compare student health insurance plans. A good plan avoids large medical bills abroad and protects your financial stability while studying.

GradRight Tools: Make Smarter, Faster Financial Choices

Visit GradRight.com/tools to:

• Use the EMI calculator to understand repayment before taking a loan.
• Check loan eligibility based on your shortlisted universities.

Frequently asked questions

1. How Does GradRight Calculate Roi On International Education?

GradRight helps you calculate ROI with the help of its University Search platform, where you can analyze tuition costs, living expenses, and your potential post-graduate salary.

Overall, this platform uses 8 million data points to provide personal insights, helping you make a decision about a high-ROI university.

2. What Are The Key Factors To Consider To Evaluate The Roi Of Studying Abroad?

Some of the key factors are tuition fees, living expenses, and scholarships.

Apart from these, consider post-graduate employment opportunities and expected salaries in your chosen field and country.

3. Can GradRight Help Me Compare The Roi Of Different Countries And Universities?

Yes, you can use GradRight’s University Search tool to compare universities in different countries based on different ROI metrics.

4. How Do GradRight’s Data Insights Improve My Decision-Making For Studying Abroad?

GradRight’s data-driven insights about university rankings, course outcomes, and the financial aspect of your education have helped tens of thousands of students make the right decision.

5. Are There Any Tools On GradRight That Can Help Me With Financial Planning For Studying Abroad?

Yes, GradRight offers you a Loan Search platform, using which you can compare offers from 15 of the best banks and NBFCs in India and abroad, and get a low-interest, flexible loan for your study abroad program.