College ROI

Smarter Choices, Brighter Futures
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Babson College

Wellesley, MA 2,696 Undergrads 93.2% Grad Rate
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Total Cost
$77,248
Sticker Price
Avg Net Price
$38,876
After Aid
Median Earnings
$123,938
10yr Post-Entry

Vs. Peer Institutions

Net Price$38,876
Peer Midpoint: $19,729.5
Earnings (10yr)$123,938
Peer Midpoint: $53,747
Graduation Rate93.2%
Peer Midpoint: 58.5%
Socio-Economic Diversity
Pell Grant Recipients14.9%
Enrollment Status
Full-Time99.8%
Economic Outcomes
Earn More than HS94.6%

Admissions Profile

Acceptance
19.7%
SAT Avg
1,435
SAT Reading
25th: 66067575th: 720
SAT Math
25th: 72073075th: 780
ACT Composite
25th: 303275th: 33

ROI Sensitivity Analysis

This analysis tests three cost scenarios (Scholarship, Average Net Price, Full Sticker Price) to show how college costs impact your long-term return compared to the average student and a high school graduate.

Lifetime Value Added (NPV)

Institution Lifetime NPV
Vs Median Peer
Vs HS Grad
Zero Cost (Scholarship)$0
+$988k
+$592k
+$504k
Median Cost$39k/yr
+$848k
+$452k
+$364k
Full Cost$77k/yr
+$710k
+$314k
+$226k

ROI Efficiency Metrics

Break-Even Age
Return on Inv. %
Zero Cost (Scholarship)$0
25
∞
Median Cost$39k/yr
30
260%
Full Cost$77k/yr
36
81%
Analysis Assumptions:
  • Starting Salary: Estimated from the 10-year median earnings (assuming 2% annual growth from graduation).
  • Comparisons: "Vs Median Peer" compares to the median student nationwide in a similar level program. "Vs HS Grad" compares to a median high school graduate.
  • Break-Even: The age at which the college investment net income exceeds the median high school graduate's lifetime earnings.
  • NPV: Net Present Value of all future earnings minus costs and taxes, discounted at 7.8%.

Social Impact ROINew

Measures the societal return on a donor's investment. Calculated as the incremental pre-tax lifetime earnings vs. HS grad, divided by the tax-adjusted donation cost.

Donor Return244%

Gov. Pell Grant ROINew

Measures the government's return on Pell Grants via increased tax revenue. Calculated as the portion of incremental lifetime taxes (discounted at 5.4%) attributed to the Pell Grant investment.

Taxpayer Return8%
Important Note: Your ROI with any major will depend on the cost you pay to attend the program, and your starting salary. Both vary significantly across institutions. We encourage you to explore the ROI of a specific program variant by selecting the Program title of the credential level you are interested in. You will then have a more detailed return analysis for programs at specific institutions. We also encourage you to use the ROI calculator with your specific estimates of cost and salary.

Program ROI Analysis

Bachelor's Degrees

Business Administration, Management and Operations
BachCIP: 5202
Median Debt
$22,766
Earnings (5yr)
$110,754
Lifetime Value Added
+$284k

Master's Degrees

Accounting and Related Services
MastCIP: 5203
Median Debt
-
Earnings (2yr)
$67,101
Lifetime Value Added
+$120k
Business Administration, Management and Operations
MastCIP: 5202
Median Debt
$50,194
Earnings (5yr)
$171,656
Lifetime Value Added
+$977k

Note: Lifetime Value Added is the Net Present Value (NPV) of estimated career earnings relative to a median high school graduate, accounting for this institution's average cost and taxes. Computed over a career to retirement age.

For graduate programs (Master's, Doctoral, etc.), the calculation assumes a starting age of 22 (after undergraduate completion) and does not include the sunk costs of prior degrees. It represents the value added of the graduate degree decision moving forward. These Lifetime Value Added results should not be compared with those Undergraduate Certificates, Associates or Bachelors starting at age 18.