Education
Learning ROI
Estimate how many months the extra income wey you expect go take to repay tuition and the value of study time.
Add to workspaceYour numbers
Result dey update as you type; no Calculate button dey. All calculation dey run inside your browser.
How long before e pay back
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How the result break down
| Di item | Value wey e get |
|---|
Expected monthly gain don already include the probability adjustment: gain of $2,500 at 60% dey count as $1,500 per month.
Quick look at the result
The bars dey compare all the investment with expected gain for the first 12 months. If the gain bar shorter, payback go take more than a year.
Net position as time dey pass
| Case wey you wan compare | Value wey e get |
|---|
Each row na expected cumulative gain minus full investment, assuming monthly gain start immediately and stay constant. Delayed start push every row later.
Formula
Payback months = (tuition + learning hours × hourly value) ÷ (expected monthly raise × probability%). Expected monthly benefit = expected monthly raise × probability%. Net after N months = expected monthly benefit × N − total investment. Na the probability wey you enter we dey use.
Example wey show the calculation
Tuition na $12,000, study na 160 hours at $60, expected monthly gain na $2,500 at 60% probability. Total investment = $12,000 + 160 × $60 = $21,600. Expected monthly benefit = $2,500 × 60% = $1,500. Payback = $21,600 ÷ $1,500 = 14.4 months. Net after 12 months = $1,500 × 12 − $21,600 = −$3,600; after 24 months = $1,500 × 24 − $21,600 = $14,400.
Where e fit work and limits
Expected income and probability na assumptions, no be measured outcomes: course provider placement figure no be your probability. Zero expected monthly benefit no get finite financial payback, and model assume gain start immediately and never change — real gains delayed, partial, and fit fade. Non-financial benefits (enjoyment, mobility, option value) real but dem no count here, and neither taxes on extra income, exam or material fees beyond tuition input, or risk of not completing course.
Questions wey people dey ask often
How we take calculate payback?
Divide all the investment (tuition plus study hours times hourly value) by the expected monthly benefit. That benefit na expected monthly raise times the chance say you go get am.
Why we include the value of study time?
Na because the hours wey you spend learning get opportunity cost. If you ignore dem, expensive courses wey take plenty time go look better than dem be. Valuing dem at your hourly rate dey make the comparison fair.
Which probability I suppose use?
Na your honest estimate say you go get that gain, based on your background and local market; no be provider headline rate. Try half your first guess to see how much the payback go change.
Wetin if the income gain no start until months later?
Add those months to the payback. The model assume say income start at once. If job search take six months, payback of 14.4 months go become about 20.4 months from when you enrol.
This one cover benefits wey no be money?
No. Satisfaction, career mobility, and option to change fields excluded. Course fit fail this financial test and still worth doing — but that suppose conscious choice, not accident of maths.
Why no payback dey when the gain na zero?
Because dividing by zero no get finite answer. If expected gain genuinely zero, investment never repaid by income, whatever im other merits.
Other tools wey relate to dis
- Calculator for ROI — general return calculation for any investment
- How long emergency fund fit last — how long savings go last while income dey change
- Calculator for Salary After Deductions — wetin salary actually worth after deductions
Results na estimates; dem no replace advice from qualified professional.