Is a Master's Degree Worth It?
Written By: Holly Johnson
Published: 7/21/2022
Pursuing a master's degree can be well worth the investment of time and money, but the specific degree you pursue can make a huge difference. After all, the best master's programs help students pursue advanced education in industries that feature higher-than-average earnings and the best job opportunities. At the same time, research shows that some master's degrees don't typically lead to better job prospects or higher pay in the end.
Before you pursue a master's degree, you should read up on how to determine the likely return-on-investment (ROI) for your chosen program. In the meantime, take the time to compare college costs at various institutions, including the best online master's programs.
Written By: Holly Johnson
Published: 7/21/2022
Pursuing a master's degree can be well worth the investment of time and money, but the specific degree you pursue can make a huge difference. After all, the best master's programs help students pursue advanced education in industries that feature higher-than-average earnings and the best job opportunities. At the same time, research shows that some master's degrees don't typically lead to better job prospects or higher pay in the end.
Before you pursue a master's degree, you should read up on how to determine the likely return-on-investment (ROI) for your chosen program. In the meantime, take the time to compare college costs at various institutions, including the best online master's programs.
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Key Insights:
- Many master's degrees can help students earn more money as they progress through their careers. In fact, internal data compiled by the Bureau of Labor Statistics (, and ). Conversely, they might decide to earn a Bachelor of Science in Nursing (BSN) before moving on to earn a Master of Science in Nursing (MSN) in order to secure higher pay or improve their job prospects.
Bachelor's Degree vs. Masters Degree
If you're not sure whether you want to pursue a master's degree or not, you should know that you'll need to earn a bachelor's degree first. Once you complete an undergraduate degree, you can decide whether the benefits of a master's degree outweigh the costs.
The chart below shows how these two degree programs stack up side-by-side:
Bachelor's degree Master's degree Type of degree Undergraduate Graduate Time for completion Four years of full-time study One to three years of full-time study (after earning a bachelor's degree) Median weekly earnings for graduates () $1,334 $1,574 Unemployment rate as of May 2022 () 2.3% 1.8%
Is a Master's Degree Worth It?
According to higher education expert Robert Farrington 鈥� who earned his MBA at the beginning of his career and went on to found play a role in the politics of workplace advancement.
"Are all of the people above you having advanced degrees?" he asks. "Then you may need one to compete."
Pros and Cons of Earning a Master's Degree
As you decide whether a master's degree is worth it or not, consider the following pros and cons:
Pros
Earn more money. Government data shows that median weekly earnings for graduates with a master's degree are $240 higher than pay for workers with a bachelor's degree. This disparity adds up to $12,840 in increased earnings per year, or $374,400 more in earnings over a 30-year career.
Climb the career ladder. Earning a master's degree positions you to qualify for a larger range of positions 鈥� many of which come with better benefits and perks.
Gain the competitive edge. In some industries, you'll only get promoted if you have the same level or a higher level of education than your peers.
Cons
Master's degrees can be expensive. "Master’s degree programs typically cost much more than undergraduate degrees, so you need to do your due diligence," says Farrington.
Earning an advanced degree takes time. "You need to really assess your time to embark on a master’s degree, or look at a program that is part-time," he says. Either way, don't forget to account for the opportunity cost involved.
Some advanced degrees don't pay off in a financial sense. Choose your master's program carefully if you want your advanced degree to lead to higher earnings over the course of your career.
Master's Degrees That Don't Pay Off
Farrington says that FREOPP is an excellent place to find master's degrees that are worth it, but that the opposite is also true. In fact, you can just as easily use research from FREOPP to find master's degree programs that have almost no net value in terms of higher pay or job opportunities. Some even have a negative net value.
"In our study, we define the ROI of a graduate degree as the increase in lifetime earnings a student can expect from that degree, minus the direct and indirect costs of attending graduate school." - FREOPP
For example, research from the organization shows that only 3% of master's programs in computer science, mathematics, and engineering have a negative ROI. The same metric applies to master's degree programs in nursing as well. The following presents some examples of subjects with negative ROIs:
Master's degree programs in arts, humanities and theology have a negative ROI
MBA programs have a negative ROI
Master's programs in psychology and social services have a negative ROI
Master's degree programs in education have a negative ROI
Master's Degrees That Are Worth It
Generally speaking, research shows that master's programs in computer science, engineering, and nursing tend to pay off the most. However, the school you attend also plays a role in the financial benefits of this advanced degree.
According to FREOPP, some of the best master's degree programs in terms of the future return-on-investment include the following:
Key Insights:
- Many master's degrees can help students earn more money as they progress through their careers. In fact, internal data compiled by the Bureau of Labor Statistics (, and ). Conversely, they might decide to earn a Bachelor of Science in Nursing (BSN) before moving on to earn a Master of Science in Nursing (MSN) in order to secure higher pay or improve their job prospects.
Bachelor's Degree vs. Masters Degree
If you're not sure whether you want to pursue a master's degree or not, you should know that you'll need to earn a bachelor's degree first. Once you complete an undergraduate degree, you can decide whether the benefits of a master's degree outweigh the costs.
The chart below shows how these two degree programs stack up side-by-side:
Bachelor's degree Master's degree Type of degree Undergraduate Graduate Time for completion Four years of full-time study One to three years of full-time study (after earning a bachelor's degree) Median weekly earnings for graduates () $1,334 $1,574 Unemployment rate as of May 2022 () 2.3% 1.8%
Is a Master's Degree Worth It?
According to higher education expert Robert Farrington 鈥� who earned his MBA at the beginning of his career and went on to found play a role in the politics of workplace advancement.
"Are all of the people above you having advanced degrees?" he asks. "Then you may need one to compete."
Pros and Cons of Earning a Master's Degree
As you decide whether a master's degree is worth it or not, consider the following pros and cons:
Pros
Earn more money. Government data shows that median weekly earnings for graduates with a master's degree are $240 higher than pay for workers with a bachelor's degree. This disparity adds up to $12,840 in increased earnings per year, or $374,400 more in earnings over a 30-year career.
Climb the career ladder. Earning a master's degree positions you to qualify for a larger range of positions 鈥� many of which come with better benefits and perks.
Gain the competitive edge. In some industries, you'll only get promoted if you have the same level or a higher level of education than your peers.
Cons
Master's degrees can be expensive. "Master’s degree programs typically cost much more than undergraduate degrees, so you need to do your due diligence," says Farrington.
Earning an advanced degree takes time. "You need to really assess your time to embark on a master’s degree, or look at a program that is part-time," he says. Either way, don't forget to account for the opportunity cost involved.
Some advanced degrees don't pay off in a financial sense. Choose your master's program carefully if you want your advanced degree to lead to higher earnings over the course of your career.
Master's Degrees That Don't Pay Off
Farrington says that FREOPP is an excellent place to find master's degrees that are worth it, but that the opposite is also true. In fact, you can just as easily use research from FREOPP to find master's degree programs that have almost no net value in terms of higher pay or job opportunities. Some even have a negative net value.
"In our study, we define the ROI of a graduate degree as the increase in lifetime earnings a student can expect from that degree, minus the direct and indirect costs of attending graduate school." - FREOPP
For example, research from the organization shows that only 3% of master's programs in computer science, mathematics, and engineering have a negative ROI. The same metric applies to master's degree programs in nursing as well. The following presents some examples of subjects with negative ROIs:
Master's degree programs in arts, humanities and theology have a negative ROI
MBA programs have a negative ROI
Master's programs in psychology and social services have a negative ROI
Master's degree programs in education have a negative ROI
Master's Degrees That Are Worth It
Generally speaking, research shows that master's programs in computer science, engineering, and nursing tend to pay off the most. However, the school you attend also plays a role in the financial benefits of this advanced degree.
According to FREOPP, some of the best master's degree programs in terms of the future return-on-investment include the following: