SchoolingYonda Consultancy Services

Study Abroad Investment

Study Abroad Investment: Are you paying or intending to pay international students fees for your child, because it feels right to study abroad or just following the trend?

Be that as it may, our goal with this brief write-up is to get you more informed to see your payment of tuition, housing, living allowance, and health plan for your child studying abroad as an investment. If it is, then returns on such investment are expected.

This article aims to reveal the estimated returns on the investments made by international students to study abroad. To evaluate the return on these investments, we calculated an estimated cost of investment & an estimated net return on investment.

The cost

The cost of investments made by international students includes tuition, rent, food, flight ticket, study permit/visa application, insurance, & miscellaneous expenses. As of 2020, according to, international students spend $29,714 per year on tuition, which amounts to $118,856 in four years. A middle-class student studying Business Economics at York University was the case study. Estimates for rent, food, ticket, insurance, & miscellaneous costs were derived. Over the course of four years, he spent $37,668 on rent, $19,200 on food & miscellaneous costs, $2,540 on ticket costs, $250 on study permit/visitor visa, and $3,800 on insurance. Therefore, the total cost of this international students investment is approximately $182,314. This is why we consider this as a Study Abroad Investment.

In this study

We measured net return on investment as the total estimated salary the student will earn after graduating. According to, the average international student will earn $59,289 per year after graduating from university, which will amount to $237,156 over four years. In addition, if a business economics student like John becomes an investment banker after graduation, they can earn an entry-level salary of $150,000 per year($600,000 over four years).

The results show that the return on investment before taxes for the average international student is approximately equal to 130%, and the return on investment before tax for a student that goes into investment banking after graduation is approximately equal to 329%.

Typical Scenario

Tax rates vary across different countries, states, & provinces. For this study, we will examine the return on investment after taxes for the average international student that studies in Canada. In Canada, the average salary for an international student is $58,916 & the average tax rate is approximately 23.17%. So, after taxes, the average international student studying in Canada will earn $45,265 per year. The data implies that over four years, the student will earn $181,061. Therefore, the return on investment after taxes for the average international student studying in Canada is 99.3%.

It is important to note that John was an appropriate subject to use when finding estimates for the cost of investment because his expenses reflect the average living standards of an international student. While the investment cost tends to vary across different students, certain expenses are equivalent with a +/- $100 error margin.

International Students

Furthermore, international students receive more non-quantitative returns. These other returns include exposure to different cultures & new experiences, exposure to an efficient societal system, life-changing connections, job opportunities, better quality of life, or better health care. Exposure to new cultures & experiences could improve the student’s confidence, interpersonal skills, & versatility, which are skills heavily sought after in today’s workforce. On many occasions, international students could also encounter newer & more fruitful job opportunities after graduation. Initially, the investment returns were calculated based on the student’s first job after graduation. However, there is still room for growth as the student gathers more skills & experience.

Students from Developing Countries

For students from developing countries, exposure to efficient societal systems in developed countries could teach them new ideas that they could take back & use to improve their home countries. In addition, it is important to have connections with influential people in other countries because these connections could provide future job opportunities, life-altering friendships, and potential business partners. Another impactful return for international students is access to a better standard of living & improved health care. For example, students that leave from Nigeria to school in Canada will have access to one of the best health care systems in the world for a reasonable insurance fee of $950 per year.


In conclusion, based on our data & derived information we can confidently say that an investment made to study abroad will fruitfully reward you with many returns. The returns would be especially fruitful if the investment is in developed countries like the UK, Canada, or the US.


Average tuition paid by international students as of 2020= $29,714 per year

(According to

Rent paid per month for each year I’ve been in Canada:

Year 1: $939 per month

Year 2: $850 per month

Year 3: $700 per month

Year 4: $650 per month

Food & miscellaneous expenses:

$400 per month

Return ticket average price (If purchased at the right time):


Application fee for study permit & visitor visa:

Study permit= $150

Visitor Visa= $100

Insurance & health plan: 950$ per year

  • The average student will pay this amount at least 2 times (For the first flight to begin their university education, one visit back home before the end of their program)

Total investment for a 4-year course:

Tuition:                          $118,856

Rent:                                        $37,668

Food & miscellaneous: $19,200

Ticket cost:                     $2,540

Study permit & visitor visa     $250

Insurance:                        $3,800

Total cost of Investment:                  $182,314

Average international student salary after graduating:

$59,289 per year (According to

The entry-level salary for investment bankers: 150,000$

Net return on investment (Total accumulated income 4 years after graduating): $237,156

Net return on investment if the student goes into investment banking (4 years): $600,000

Return on investment= (Net return on investment/cost of investment) * 100%

Return on investment for average student= (237,156/182,314) * 100 = 130%

Return on investment for investment banking student= (600,000/182,314) * 100 = 329.1%

Leave a Reply

Your email address will not be published. Required fields are marked *