HELP-ROI/Break Even Calculator

Question

Anyone know of a good ROI Calculator for MBA-I need to know my break even point..
I can only find one-on Forbes and my school is not listed and not sure how up to date it is..
Any assistance would be appreciated..

Jim

ryguy904 · Answer

Not sure what your specific needs are, but give this a shot. https://dinkytown.net/business.html

westsider · Answer

YOu should be able to hack something together in excel with the data on expected graduate salary, your current salary, expected cost of schools. You could add in a weighting based on % of students with jobs lined up at graduation if you want to get fancy.

If you can't create a rough spreadsheet for this in .. say.. an hour, you should maybe re-evaluate your quantitative skills and try to improve them before applying to b-school.

riverripper · Answer

Your school may not show up on their listing but you may find one thats fairly close in standing. https://www.forbes.com/2007/08/15/busine ... _calc.html

jamesrwrightiii · Answer

My quant skills are fine. I just have not had finance yet to do such a calculation, and I am not an excel wiz. I was trying to find something a little more concrete that would take cost of student loans, etc, into consideration. I figured out my loan payments would be close to 780 dollars a month for the 10 year payment plan and about 500 for the 25 year plan.

I think someone had some type of spreadsheet posted on here somewhere last year, but I can't locate it.

aaudetat · Answer

be nice. lots of people go into b-school without having much quant or biz background...myself included. and i am doing just fine, thank you.

westsider · Answer

Sorry bout that. Came out a little different then I intended! Oh the hazards of posting from work! :oops:

Anyhow, I was trying to say its a good exercise for practice in excel since it isn't too intensive. I made one sometime back for my own personal use. I'll post it here if i can find it!

jamesrwrightiii · Answer

Ok I finally figured out how to drag an equation down an entire row in Excel so I was able to do salary increases without having to type the formula into each individual cell.

I am just slightly confused as to what figure I should use in terms of "costs" for MBA...more specifically. how I should factor in the cost of attendance. The tuition/living costs for two years is 63,000. However, taking into account the fact interest will be capitalizing on the loans during my time there, the final loan balance would be around $70,000. If I do the extended repayment plan for 30 years, the sum of payments would be $170,073.10. That would keep the payments under 500 a month. If I do the 10 year plan, it would be 96.605..
What would be the best figure to use or am I totally off by doing it this way?

aaudetat · Answer

you want to do a differential analysis. in other words, only include things that are different in the two scenarios: you would have cost of living expenses anyway, so don't put those in. (Do put in, though, the interest. And if there are differences in your living expenses between the two scenarios, do include those.)

jamesrwrightiii · Answer

Ok if I subtract my living expenses for the two years, I guess I will come up with about with around 30k for the area..the budget allowed by the school is 6245 per semester and then I would have to factor in the summer living expenses. ...

So this is what I have. I would have to do the 30 year option to pay back the loans..no way I am going to be able to swing 850 a month. Total costs for the school would be 170,073.10.-30000 for living expenses so 140,073 plus two years salary after taxes which would be around 38,000 per year for me.

Total cost of school would be 216,000?

3underscore · Answer

Well, summer costs should be offset by a summer internship - I would say assuming neutral for summer would be conservative. Otherwise your future career plans clearly throw your lifestyle into question!

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