See what private school
really costs
Then compare investing the money instead. Calculate the opportunity cost of private education.
TuitionTruth Calculator
Calculate the investment gap between private school costs and market returns
Calculate Your Scenario
Historical S&P 500 average: 7%
Average tuition inflation rate since 2000
Financial Comparison
Cash out over 13 years
Portfolio you would have built
Extra gains from compounding
Investment Analysis
Understanding the long-term financial implications of education decisions
Key Insights
It's the Whole Portfolio
Opportunity cost isn't just the 'gains' from investing—it's the entire portfolio you would have built. When you pay tuition, you lose both principal and growth.
The Gap Widens Each Year
The chart shows portfolio value (green) vs tuition spent (red). The gap between them is your opportunity cost—wealth you chose not to build.
Not Financial Advice
Markets carry risk and past returns don't guarantee future results. Education provides invaluable benefits that can't be measured in dollars.
How We Calculate Opportunity Cost
The Core Question
If you invested the tuition money instead of paying for private school, how much would you have at the end?
Year-by-Year Calculation
Each year, we simulate investing that year's tuition payment:
- Previous portfolio balance grows by 7% (historical S&P 500 real return)
- Add this year's tuition as a new contribution
- Repeat for each year of schooling
Why Portfolio Value = Opportunity Cost
The opportunity cost isn't just the "extra gains" from compounding. It's the entire portfolio you would have owned. When you pay tuition, you don't just lose the growth potential, you lose the principal too.
Example: $50,000/year for 13 years
Total tuition paid
$650,000
If invested instead
$1,310,000
The $1.31M is your opportunity cost, the wealth you chose not to build.
Key Assumptions
- 7% real return — S&P 500 average after inflation
- Annual compounding — Growth applied once per year
- Start-of-year contributions — Tuition invested at the beginning of each school year
Remember: These calculations don't account for the invaluable benefits of quality education, networking, and personal development.
Beyond the Numbers: Factors to Consider
Class Sizes
Smaller classes enable personalized attention and better student outcomes
Networking
Lifelong connections and alumni networks can provide career advantages
Specialized Programs
Unique opportunities in arts, sports, or advanced academics
Values & Culture
Character development and shared values within the school community