Is Graduate School Worth It? Breaking Down the Real ROI
Weighing the benefits and costs of advanced degrees, from master's to doctoral studies.
When was the last time you applied a skill that you picked up in a totally different context?
Maybe your bachelor's degree in chemistry makes you a master improviser in the kitchen. Or perhaps your poli-sci education taught you negotiation and stakeholder management skills that help you build strong customer relationships at work.
Learning is never wasted, but graduate school requires significant time, energy, and financial investment. Choosing the wrong program (or pursuing one unnecessarily) can set you back. So, how do you know if graduate school is worth it? Let's break down the real return on investment (ROI) for master's and doctoral degrees, along with key considerations.
The rewards of graduate school
Earning a graduate degree isn't easy, but the benefits can be substantial:
1. Increase your earning potential
Graduate degrees often lead to higher salaries. Two years after graduation, median income for undergraduates is $58,700, compared to $76,400 for master's and $79,600 for doctorates. Five years out, master's graduates earn $87,700 (24% more than undergrads), while doctorates earn $94,300. Top-paying fields include business, public administration, mathematics, computer sciences, education, architecture, engineering, and health.
The table below lays out the top fields of study by income, five years after graduation:
| Master's degree |
Doctoral degree |
| 1. Personal, protective, and transportation services ($106,800) |
1. Business, management, and public administration ($124,400) |
| 2. Business, management, and public administration ($100,900) |
2. Mathematics, computer, and information sciences ($113,800) |
| 3. Mathematics, computer, and information sciences ($94,800) |
3. Education ($104,800) |
| 4. Education ($89,900) |
4. Architecture, engineering, and related trades ($104,800) |
| 5. Architecture, engineering, and related trades ($88,300) |
5. Health and related fields ($99,300) |
2. Take your career to the next level
An advanced degree can make you more competitive for promotions or leadership roles. In some fields, it's even required. Graduate education signals commitment and leadership potential.
3. Discover meaning and purpose
If you're unsure about your career path, graduate school offers a chance to explore your interests deeply. About 34% of recent undergrads pursue further education. Beyond career benefits, graduate studies foster personal growth, including confidence, communication, and leadership skills.
4. Expand your mind
Graduate school provides an environment for intellectual curiosity and research opportunities rarely found in the workplace. It's ideal if you want to "nerd out" and challenge yourself academically.
5. Find your professional community
Networking is critical for career success. Graduate programs offer built-in networks of peers, professors, and mentors who can connect you to opportunities and provide guidance.
6. Be resilient in a changing world
Rapid technological and economic changes mean lifelong learning is essential. By 2030, 39% of workers' skills will need updating (per WEF Future of Jobs Report). A graduate degree helps future-proof your career, demonstrating mastery and adaptability.
The costs of graduate school
1. Understand the financial burden
Tuition varies widely: domestic master's programs cost $3,000–$11,000 per term; international programs range from $8,000–$23,000. Living expenses and lost wages add to the burden. Fortunately, most full-time research-based graduate programs offer funding, whether through scholarships, teaching or research assistantships, or work-integrated learning. Online or part-time programs can help balance costs since you can continue to work while you study.
2. Don't forget about real-world experience
Jumping straight into graduate school may mean missing hands-on experience. Employers often value practical skills as much as academic credentials. Many programs offer co-op or internships — consider these options or gain work experience first.
3. Calculate the opportunity cost of time
Graduate programs demand significant time: 30–50 hours per week for full-time master's and up to 60 for professional programs. This can mean sacrificing work, travel, or personal commitments. Lost earnings and lifestyle adjustments are part of the equation. Ultimately, weigh what matters most now against your long-term goals.
Final thoughts: is grad school worth it?
Graduate school can be a powerful investment in your future if it aligns with your career aspirations, financial situation, and personal priorities. One thing is for sure: the time will pass anyway. What do you want to gain from it?
Explore your future as a grad student at Waterloo