DegreeMath

Methodology

DegreeMath uses a transparent, data-driven methodology. This page explains exactly how we calculate ROI scores, select schools, and present data.

Data Source

Our primary data source is the U.S. Department of Education College Scorecard. This dataset includes information on costs, earnings, debt, and outcomes for thousands of post-secondary institutions in the United States.

We focus on approximately 2,000 institutions that primarily award bachelor's degrees and are currently operating.

ROI Score Formula

Our ROI Score measures the financial return of attending a school, calculated as:

ROI = ((Median Earnings at 10 Years x 10) - (Average Net Price x 4)) / (Average Net Price x 4)

Where:

  • Median Earnings at 10 Years: The median annual earnings of former students 10 years after they first enrolled, as reported by the College Scorecard.
  • Average Net Price: The average annual net price for students receiving federal financial aid. Net price is the total cost of attendance minus grants and scholarships.
  • x 4: Assumes a four-year degree program.
  • x 10: Projects earnings over a 10-year period to capture mid-career value.

Degree Value Score

The Degree Value Score normalizes the raw ROI to a 0-100 scale across all schools in our database. A score of 100 represents the highest ROI school; a score of 0 represents the lowest. This allows for easier comparison between institutions.

Limitations

Our methodology has important limitations that users should understand:

  • Earnings data reflects all graduates, not specific majors. A school's median earnings may be heavily influenced by its most popular programs.
  • The data includes students who transferred, so outcomes may reflect experiences at multiple institutions.
  • Earnings data is reported at the median, which can be skewed by outliers in either direction.
  • Net price varies significantly by family income. Our ROI calculation uses the overall average, which may not reflect your specific situation.
  • Past earnings are not guarantees of future outcomes. Economic conditions, industry changes, and individual choices all affect results.

What We Exclude

  • Schools that do not primarily award bachelor's degrees
  • Schools that are not currently operating
  • Schools with suppressed or missing earnings data

Update Frequency

We update our dataset when the Department of Education releases new College Scorecard data, typically once per year. The current dataset reflects the most recently available data vintage.

Feedback

If you have questions about our methodology or suggestions for improvement, please reach out through our Contact page.