How it works
The Trade School vs College Calculator helps you analyze the financial implications of choosing between trade school and college. By comparing total costs and potential earnings over time, you can make a more informed decision. For instance, if you opt for trade school, you will incur a cost of $25,000 over 2 years, leading to an annual salary of $42,000. In contrast, attending college will cost $120,000 over 4 years, with a higher expected salary of $55,000 annually. To calculate the net earnings after 5 years, we consider the total earnings minus the total costs. For trade school, your total earnings would be $210,000 ($42,000 x 5 years), resulting in a net of $185,000 after costs. For college, your total earnings would be $275,000 ($55,000 x 5 years), leading to a net of $155,000 after costs. The calculator also determines when you break even, which is calculated by finding when cumulative earnings equal cumulative costs, helping you assess the time it takes to recover your investment.
Tips
- Consider not just salary but job stability and industry growth when choosing between trade school and college.
- Research local job markets to understand demand for trade skills versus college degrees.
- Factor in potential student loan debt and how it affects your financial future.
- Look for scholarships or grants that can reduce the cost of either educational path.
Frequently asked questions
- What is the total cost of trade school?
- The total cost of trade school is $25,000.
- How long does trade school typically take?
- Trade school typically takes about 2 years to complete.
- What is the expected salary after completing college?
- The expected salary after completing college is $55,000 per year.
- When does the college investment break even?
- The college investment breaks even at approximately 8 years after graduation.