College vs Trade School Calculator
How It Works
This college vs trade school calculator uses established formulas to provide accurate results.
The basic rule:
- Net Earnings = Cumulative salary - education costs - total loan payments (principal + interest)
- College loan: 10-year standard repayment at specified rate
- Trade loan: 5-year repayment at specified rate
- Break-even = Year when college cumulative earnings exceed direct workforce cumulative earnings
Results are estimates. Consult a professional for critical decisions.
Frequently Asked Questions
What salary growth rates does this use?
College graduates average 3.5% annual salary growth reflecting higher advancement potential. Trade professionals average 2.5% growth, reflecting steady skilled labor demand. Direct workforce entrants average 2% growth. These are inflation-adjusted real growth rates based on Bureau of Labor Statistics data.
How is the break-even year calculated?
The break-even year is when cumulative college earnings (minus tuition and loan payments) first exceed cumulative earnings from entering the workforce directly after high school. This accounts for 4 years of zero income during college plus loan repayment.
Does this account for opportunity cost?
Yes. During the 4 years of college, you earn nothing while direct workforce entrants are earning salary. During the 2 years of trade school, trade students earn nothing. These lost earnings are a significant factor that many people overlook when comparing paths.
What about benefits and job satisfaction?
This calculator focuses on financial comparison. College degrees often provide additional benefits like employer healthcare, retirement matching, and more job flexibility. Trade careers can offer strong benefits through unions. These non-financial factors should also inform your decision.