Question 1

How to Calculate ROI?

Accepted Answer

ROI (Return on Investment) is a way to know whether an investment is valuable or whether there are no returns at all. ROI, mathematically, is the difference between the gain (return) and the cost of the original investment, divided by the cost of the investment, expressed as a percentage.
                          In the education sector, ROI is considered by comparing the investment in a degree by looking at the degree cost, tuition, fees, living expenses, etc., and then assessing the future earnings once the degree has been completed.

Question 2

What is an ROI?

Accepted Answer

ROI (Return on Investment) is a way to look at the likelihood of returns on investment, typically expressed as a percentage, that explains the value to you and how valuable or profitable an investment could be by engaging in it.
                        ROI works to help answer the question, "Was it worth it?" It could be stocks, real estate, or a college degree; ROI provides an easy-to-use answer to what you end up gaining vs. what you put out.
                        In actual numbers, if a student spent INR 5,00,000 on a degree and earned INR 10,00,000 based on it, ROI would likely outperform the financial implications of that calculation.

Question 3

What is an ROI Calculator?

Accepted Answer

An ROI calculator is a web-based or digital tool designed to help a user calculate Return on Investment. The process is automated with the ROI to be entered, including the total cost of investment, and the total gain/profit from the investment.
                        The college ROI calculator is used in higher education to weigh the cost of attending a specific college, which includes tuition, room & board, and other fees, and the average salary students earn after graduation. The tool takes the guesswork out of the decision-making for students, as well as financial considerations based on the choices they are making.

Question 4

What is the formula for calculating ROI?

Accepted Answer

Here are the two formulas for the Return on Investment of the candidates, so that they can calculate their ROI. The formulas are mentioned below:
                    The basic ROI formula is: ROI (%) = [(Net Profit or Gain from Investment - Cost of Investment) / Cost of Investment] × 100
                    In terms of Education/Degree ROI: ROI (%) = [(Average Annual Salary × Number of Years) - Total Cost of Education] / Total Cost of Education × 100

Example:
                      Total cost of education: INR 6,00,000
                      Average annual salary after graduation: INR 4,00,000
                      Duration considered for return: 3 years
                      Total return = INR 4,00,000 × 3 = INR 12,00,000
                      ROI = [(INR 12,00,000 - INR 6,00,000) / INR 6,00,000] × 100 = 100%

Question 5

How to Calculate the ROI?

Accepted Answer

Here is a detailed step-by-step guide for finding the returns on investment, especially concerning educational investments:
                      Decide on the Investment Cost in Total
                      Investment includes tuition, books, travel expenses, and accommodation.
                      Gross Financial Return
                      Look at the average salary package offered to the graduates from the program during a given time period (say 3 or 5 years).
                      Use the Formula
                      ROI = [(Total Return - Cost of Investment) / Cost of Investment] × 100
                      Interpret the Result
                      A positive ROI suggests that the returns are worth more than the investments. The bigger the ROI, the better the value/profit provided by the investment.

Question 6

What are the Advantages of the ROI Calculator?

Accepted Answer

The ROI calculator offers several benefits, and some of them are mentioned below:
                      Easy Comparison: Comparing educational programs and colleges.
                      Saves Time: Automates calculations so that the user does not have to do them manually.
                      Informed Decisions: Helps students and parents arrive at a financially smart decision regarding education.
                      Visual Insights: Many ROI calculators provide graphical and tabular representations for a better grasp.
                      Customization: Enter personal data like expected salary, cost of living, and duration to allow for more accuracy.
                      Transparent Evaluation: Promotes transparency when evaluating the real worth of a degree.

University	UG - Salary Package	PG - Salary Package
Manipal Academy	₹ 1168000	₹ 1168000
Amity University	₹ 550000	₹ 550000
NMIMS	₹ 1920000	₹ 1920000
DY Patil Pune	₹ 450000	₹ 450000
Jain University	₹ 726000	₹ 726000
UPES	₹ 650000	₹ 650000
LPU	₹ 675000	₹ 675000
Amrita	₹ 470386	₹ 470386
IGNOU	₹ 288000	₹ 288000
Sharda University	₹ 400000	₹ 400000
Chandigarh University	₹ 635000	₹ 635000
Andhra University	₹ 650000	₹ 650000
Aligarh Muslim University	₹ 847300	₹ 847300
Jamia Hamdard	₹ 485000	₹ 485000

University ROI Calculator

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Average Package Data of Universities (As per NIRF)

Formula to Calculate the University's ROI

Example: Manipal University (UG Course)

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