What is the net lifetime earnings premium of a bachelor's degree?

Federal Reserve Bank of New York estimates the net lifetime earnings premium at approximately $800,000 to $1,000,000 in current dollars, or $300,000–$500,000 in net present value terms (discounted at 5%). This varies enormously by major: engineering/CS degrees net 2–3x more than humanities degrees.

Is a master's degree always worth more than a bachelor's?

Not financially. Georgetown CEW data shows master's graduates earn a median 17% premium over bachelor's. However, master's in arts, education, and social work often have negative ROI when tuition debt is factored in. Master's in STEM, business (top-10 MBA), and nursing consistently show positive financial returns.

Lifetime Earnings Premium: Degree vs No Degree

Formula Definitions

The Lifetime Earnings Premium: Degree vs No Degree works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the Degree Earnings Premium.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the Degree Earnings Premium.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Lifetime Earnings Premium: Degree vs No Degree input fields.
Adjust settings. Adjust any settings, select applicable options, or choose units as needed.
Calculate the result. Press Calculate to compute the result using the underlying formula.
Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input: A value entered into the calculator to be processed.
Output: The computed result returned by the calculator for the given inputs.
Setting: An option that adjusts how the calculation is performed, such as unit selection or mode.
Lifetime earnings: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.
Degree premium: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.
College earnings: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.
No degree earnings: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.
Education return: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.
Census PINC: A key concept referenced by the Degree Earnings Premium: Calculate net lifetime earnings differential between educational attainment levels, incorporating tuition costs, years of forgone income, and projected graduate salary premium based on US Census Bureau PINC longitudinal data.