When Should You Get a Master’s Degree?
A master’s degree can boost long-term career prospects and future earnings. But when is it not worth it?
Why it matters
You can go back to school for a master’s degree at any age. Knowing how the timing of your degree affects your future earnings helps you decide whether it’s right for you.
How Long Will It Take You to Pay It Off?
On average, a master’s degree costs $62,820 and comes with an annual $17,250 wage premium. This means, on average, it will take you 3.64 years to get a return on your investment, but this does not account for what you give up by going back to school.
The Opportunity Cost Trap
You must also consider the opportunity cost of how long it takes you to complete the degree (usually two years):
1. Forgone wages
The income you would have received had you continued working full time instead of enrolling.
2. Forgone professional development
The skills, experience, relationships, and seniority you would have accumulated in your organization or industry.
How Does Your Age Matter?
Your age and career status impact the cost-benefit analysis of a master’s degree.
Years to Pay Off vs. Age When Starting the Degree
Click any field in the legend to highlight its trajectory:
Estimated payoff time equals total master’s cost ($62,820 in tuition plus earnings forgone while enrolled) divided by the $17,250 annual wage premium. Forgone earnings reflect average earnings without a graduate degree at each starting age; results are rounded to the nearest 0.1 year.
Cost: Higher Opportunity Cost Later in Career
On average, older people who are farther along in their career have a higher income. This means the opportunity cost is higher. Most job promotions also occur between ages 25-44. Depending on your career and employer, taking time away could potentially hurt your chances and earnings.
Benefit: Earlier Completion Yields More Compounding Years
Getting your master’s degree earlier will give you more time to use it. It might help you enter higher-paying positions sooner and stay on an advanced career track.
Estimated Payoff Timeline by Field & Starting Age
| Field of Study | Age 30 | Age 40 | Age 50 | Age 60 |
|---|---|---|---|---|
| Business administration | 11.5 yrs | 13.3 yrs | 13.6 yrs | 12.7 yrs |
| Nursing | 11.1 yrs | 12.3 yrs | 12.8 yrs | 12.6 yrs |
| Accounting | 11.5 yrs | 13.3 yrs | 13.7 yrs | 12.7 yrs |
| Special education | 8.7 yrs | 9.3 yrs | 9.5 yrs | 9.2 yrs |
| Teacher education (subjects) | 9.3 yrs | 10.1 yrs | 10.3 yrs | 9.8 yrs |
| Education administration | 8.9 yrs | 9.4 yrs | 9.6 yrs | 9.3 yrs |
| Teacher education (levels) | 8.6 yrs | 9.2 yrs | 9.4 yrs | 9.1 yrs |
| Student counseling | 8.8 yrs | 9.4 yrs | 9.6 yrs | 9.3 yrs |
| Clinical/applied psychology | 8.4 yrs | 9.1 yrs | 9.3 yrs | 9 yrs |
| Social work | 8.3 yrs | 9 yrs | 9.2 yrs | 8.9 yrs |
Is It Too Late?
Despite the higher opportunity costs, there are still benefits to getting a master’s degree later on. The degree can still lead to higher lifetime earnings. However, the outcome is less clear. You should consider:
Years remaining in your career
The fewer years you plan to work, the less time you have to recover the costs.
Professional advancement
Employers may value additional experience more than another degree. Consider whether the degree will make a meaningful difference in your specific field and career path.
Career change
If you are planning to enter a different field, a master’s degree may signal additional credentials, technical skills, and provide a strong network.
Debt and retirement
Consider whether tuition will impact your retirement savings or interfere with your other financial priorities.
Personal goals
A master’s degree can help you achieve other nonfinancial goals such as access to research or academic fulfillment.
The Bottom Line
Typically, earlier is better. You give up less and have more time to collect the benefits. However, being older doesn’t disqualify you, and a master’s degree could still offer a meaningful boost. Consider where you are in your career and both your professional and personal goals.
Calculate Your Personalized Degree Payoff
Estimate your tuition, borrowing caps, opportunity costs, and post-grad earnings using our interactive calculator.
Chart your path