2027 Return on Investment (ROI) of an Electrical Engineering Degree Program

Imed Bouchrika, PhD

by Imed Bouchrika, PhD

Co-Founder and Chief Data Scientist

How Is ROI Calculated for a Electrical Engineering Degree Program?

Return on investment (ROI) in higher education measures the financial return a student can expect from completing a degree relative to the total costs and time committed. For those considering an electrical engineering degree program, ROI provides a crucial metric to evaluate whether the educational investment will translate into meaningful career and salary benefits.

Several key factors are used to calculate the ROI of an electrical engineering degree program:

  • Tuition and Fees: This covers all direct educational expenses including tuition, books, materials, and institutional fees. Accurately capturing these costs is essential for assessing the initial financial commitment.
  • Opportunity Cost: This considers the income forgone by attending school full-time instead of working. Given that electrical engineering programs often span four years, this lost earnings potential significantly affects the overall investment return.
  • Time to Completion: The duration needed to graduate influences both total cost and when graduates can start earning. Longer programs increase expenses and delay career income, negatively impacting ROI.
  • Post-Graduation Salary Outcomes: Median starting salaries and anticipated salary growth in the electrical engineering field drive the returns. Higher and steadily increasing salaries help shorten the payback period on educational costs.
  • Career Advancement and Long-Term Earnings: The availability of advancement opportunities and prospective salary increases over time boost ROI. Programs linked to strong industry partnerships and continuing education, such as MSW programs online, illustrate how ongoing learning contributes to long-term financial gain.

Careful electrical engineering degree program investment return analysis aids prospective students and career changers in making informed decisions about their educational paths.

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How Much Does a Electrical Engineering Degree Program Cost?

Calculating the full cost of an electrical engineering degree is vital for an accurate assessment of its return on investment, especially as graduate tuition rates have steadily climbed, pushing median student debt beyond $30,000 for master's degree earners. To better understand the financial commitment, it's important to consider several key expense categories.

  • Tuition and fees: This often represents the largest portion of expenses, with costs varying based on the type of institution and whether the student qualifies for in-state or out-of-state rates.
  • Books and materials: Essential textbooks, specialized software, and lab equipment can add several hundred to a few thousand dollars each year.
  • Living or relocation expenses: Depending on where the program is located, housing, food, and transportation expenses significantly impact the total investment required.
  • Opportunity cost: Time dedicated to coursework frequently means lost wages, especially for students leaving full-time jobs or switching careers.
  • Hidden or indirect costs: Additional expenses such as technology fees, commuting, and unexpected academic supplies can quietly increase the overall price.

One graduate of an electrical engineering program shared how juggling these factors was eye-opening. "I hadn't realized how much the cost of living adjustments would add up, especially since I moved far from home," he explained. Balancing a part-time job with demanding classes meant stretched finances and limited free time, which tested both his budget and resolve. While recognizing the tuition as the biggest expense, he emphasized that the smaller, less obvious costs imposed just as many challenges, making the true price of the degree more complex than initial estimates suggested.

What Financial Aid Is Available for Electrical Engineering Degree Programs?

Financial aid plays a vital role in reducing upfront expenses and enhancing the long-term return on investment for students pursuing an electrical engineering degree. Recent surveys show that more than 85% of graduate students depend on financial aid to help cover both tuition and living costs, underscoring its significance in managing educational debt.

Several types of financial assistance can directly improve ROI by lowering borrowing requirements and minimizing interest accumulation. Common options include:

  • Scholarships: These awards do not require repayment and often target high-achieving or underserved students, cutting down tuition costs and improving net financial outcomes.
  • Grants: Typically based on financial need, grants provide non-repayable funds that reduce the amount students must borrow, thus enhancing ROI by limiting debt.
  • Fellowships: Mainly for graduate learners, fellowships offer stipends for teaching or research, offsetting tuition and living expenses to decrease overall educational costs.
  • Employer Tuition Assistance: Employers may reimburse tuition fees for employees earning degrees related to their job roles, lessening personal financial burdens and positively impacting ROI.
  • Federal Loans: Although loans add to debt, federal options usually have lower interest rates and flexible repayment plans, which help students manage expenses more efficiently compared to private loans.

Breakdown of All 4-Year Online Title IV Institutions

Source: U.S. Department of Education, 2023
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What Graduates Say About The ROI of Their Electrical Engineering Degree

  • Sheryl: "Choosing to pursue an electrical engineering degree felt like a significant investment, especially with the average cost of attendance hovering around $40,000. However, realizing the long-term return on investment through the advanced skills and job security it provided truly made it worthwhile. Graduating as a traditional student, I confidently stepped into a career where my technical expertise opened doors to leadership roles and higher salaries."
  • Hugh: "Opting for an online electrical engineering degree was a practical choice, as it allowed me to save on relocation and commuting expenses, which helped manage the substantial cost averaging around $35,000. Reflecting on this, I believe the cost was justified by the flexibility it offered and the credential's strong impact on my career advancement. Completing the program equipped me with up-to-date skills that employers actively seek, accelerating my progression in the tech industry."
  • Atlas: "Balancing a part-time electrical engineering degree with work was a challenge, and the cost, about $45,000, required careful financial planning. Yet, the degree's long-term ROI became clear as I applied what I learned directly to my job, leading to specialized roles and increased responsibility. This practical approach made the investment worth it, enhancing both my professional expertise and earning potential."

Other Things You Should Know About Electrical Engineering Degrees

What is the salary gap between accredited and non-accredited electrical engineering programs?

Graduates from ABET-accredited electrical engineering programs usually qualify for more entry-level jobs and licensure paths, which can raise earnings. ABET accreditation is the main standard used by U.S. employers and state boards, and many PE licensure routes require it for eligibility.

How does location influence the ROI of an electrical engineering degree?

Location significantly impacts the ROI of an electrical engineering degree in 2027. Urban areas with a concentration of tech companies, such as Silicon Valley, typically offer higher starting salaries, enhancing ROI. Conversely, rural or less industrialized regions may result in lower initial earnings, affecting overall ROI.