Return on Investment for a Master's Program

Calculating the cost of your Master's Program

Actual Investment
Cost of the entire program 3,500,000
Living expenses 400,000 things such as rent, food, mobile etc
Miscellaneous expenses 100,000 eveything else - partying, going back home etc

Total cost of the program 4,000,000

Opportunity Cost
Duration of the Program? 1 years
Are you a student or working? Working
1,000,000
How much is your current CTC?
Assumed Annual Increment 10%
Total Opportunity Cost 1,000,000

Cost of Financing
Loan amount 3,100,000
Rate of Interest 8%
Tenure 7 years
Total Interest Paid 1,698,007 over the loan period

Total cost of your Masters 6,698,007

Calculating the return of your Master's Program

Expected salary after Masters 2,200,000 per year

Expected increment / year 10%

Metric 1
How much of the fees is recovered in 2 years?
116%
If this number is greater than 100%, then that is a good sign.
Lower the number, lower is the short term financial impact of your Masters Program

Metric 2
Over a 10-year period, how many times is your
income above the TOTAL cost of your masters
5.2
Which means your Master's Program has delivered
a rate of return on your money of
18% over a 10 years period
As a comparison
Gold gives ~10% return on investment
Equities give ~15-20% return on investment