Return on investment of going to university in the UK

This post explores a crucial yet often overlooked consideration for international students and their parents: the financial return on investment (RoI) of a UK university education, and how to estimate it using our proprietary tool.

UK education investment potential: University RoI Calculator by Study Space

University RoI Calculator by Study Space © is an easy-to-use tool for estimating the financial viability of your UK studies. By inputting tuition fees, living expenses, course duration, and post-graduation salary expectations, you can instantly generate a personalised RoI metric. This metric provides an initial assessment of how profitable your educational investment could be.

Please note - while the calculator can be a useful tool, it only offers an estimate and does not constitute financial advice. 

Understanding the RoI calculation

The calculator employs a present value* approach, assessing how much your lifetime post-tax earnings are worth today, relative to the university-related expenses (tuition fees and cost of living) also in today’s terms.

*Present value refers to the current worth of a future sum of money. It considers the time value of money, acknowledging that money available today is worth more than the same amount received in the future due to potential investment gains.

To calculate the RoI, first you take the profit generated by your investment (in our case, the present value of the expected future earnings, after tax), then you subtract the cost of the investment (here, the present value of university fees and living expenses) in order to get the net profit. Finally you have to divide the net profit by the costs to calculate the RoI. 

A higher RoI percentage indicates a stronger financial return. Equally, it suggests which course and university might offer a better value for money in financial terms. 

However, it is crucial to consider other factors such as the qualitative aspects of your degree and desired location for a well-rounded decision-making process. 

Looking for personalised guidance?

Study Space offers tailored advice based on a comprehensive financial analysis, allowing you to make an informed investment in your education. To assess the non-financial aspects of studying in the UK in parallel, you might also want to consider our University Applicant Report. 

Get in touch to book a consultation today and obtain your own personalised RoI estimate.