Purpose of the Index

The Return on Education (ROE) Index helps prospective students and career-changers answer a vital question: Which Canadian programs offer graduates the fastest, most reliable financial return for the least time and money invested?

We built the ROE Index to give students and career changers a clear, data-driven way to compare the short-term payback of different diplomas and bachelor’s degrees. It brings together nationally consistent data on tuition, program length, student debt, graduate salaries, and job growth, then applies a standardized calculation to show how each program performs against a baseline ROE score of 100.

A score above 100 means a program performs better than the average on our list, while a score below 100 means it performs worse.

By translating complex economic and education data into a single, easy-to-read measure, the ROE Index makes it easier to understand which paths lead to quicker returns—and which require more time and investment before paying off.

For the full ROE Index calculator, visit CourseCompare’s ROE Index.

How We Selected Programs

To derive our selection of 10 diplomas and 10 degrees for this report, we began by identifying the 15 most popular diplomas and degrees, respectively, based on Statistics Canada (StatCan) Census 2021 data.

Then, we reduced to a top 10, respectively, by layering in CourseCompare’s proprietary learner data to determine the programs currently driving strong interest and demand among prospective students. In two cases, this required subbing in a program (Graphic Design diploma and Bachelor of Fine Arts) that had not appeared in the top 30 derived by the census, but that did meet the top 20 threshold for learner interest in CourseCompare’s data.

Once we had these two lists of 10 programs, we aligned each diploma and degree program with a StatCan CIP (2021) code, CIP series, and Primary Grouping, to ensure that we pull the correct associated data for each program based on established StatCan classifications (see Table A below).

Sources:

• Education Reference Guide, Census of Population, 2021
• Major field of study (detailed, 4-digit) by highest level of education: Canada, provinces and territories, census metropolitan areas and census agglomerations with parts
• Major field of study (based on the Classification of Instructional Programs (CIP) Canada 2021)
• Appendix 2.13 Major field of study – Classification based on the Classification of Instructional Programs (CIP) Canada 2021 codes

Metrics We Used

Average Tuition Cost and Program Duration

CourseCompare gathered tuition data directly from colleges and universities across Canada, using our standard process for collecting up-to-date information from institutions regarding their programs, including online research from verified institution sites and confirmation through school registrars when required. We capture tuition for the entire program (not one term or academic year), not including additional fees and incidentals that might be incurred, using tuition fees for the 2025-26 academic year. Tuition is based on domestic out-of-province student prices. We prioritize public institutions.

Average Student Debt at Graduation

As mentioned above in our Program Selection section and illustrated in Table A, each program has an associated field of study primary grouping. We pulled the median debt owed at graduation to any source (government or non-government), by field of study, and level of study (College for diploma programs, Bachelor’s for undergraduate degree programs). We used data collected in 2020, for the following debt source: Graduates who owed money for their education to any source (government or non-government). Then, we applied cumulative inflation. (For an explanation of how we did so, see section Cumulative Inflation Rate Calculation.)

Source:

• Student debt at postsecondary graduation, by source of debt, level of study and province of study

Student Loan Interest and Repayment Data

Using data regarding student loan interest rates nationally and provincially, weighted based on the province/territory’s population, we calculated a national weighted average of a 4.34% student loan interest weight.

Sources:

• https://www.cbc.ca/news/business/canada-student-loans-repayment-tips-1.6858596
• https://www.csnpe-nslsc.canada.ca/en/glossary (Current Interest Rate)
• https://www.quebec.ca/en/education/student-financial-assistance/repayment/repaying-student-loan
• https://osap.gov.on.ca/dc/tcont003397
• https://www.ece.gov.nt.ca/en/sft-loan-repayment-and-incentives
• https://assembly.nu.ca/library/GNedocs/2014/001347-e.pdf
• https://studentaid.alberta.ca/resources/repayment-essentials/interest-rates-for-student-loans-repayment/interest-rates/
• https://www.saskatchewan.ca/residents/education-and-learning/saskatchewan-student-aid/repaying-your-student-loan

Median Post-Grad Salary

As mentioned above in our Program Selection section and illustrated in Table A, each program has an associated field of study primary grouping. Using data supplied by Statistics Canada, we pulled the median employment income for each field of study, crossed with the relevant educational qualification (Career, technical or professional training diploma, or Undergraduate degree).

StatCan took 2021 data and adjusted it for inflation to get “2023 constant dollar” values. We applied cumulative inflation to adjust the data so that it will reflect 2025 dollar amounts. We have actual inflation data for inflation up to 2024 and then used the standard 2% annual inflation rate to estimate inflation rates for 2025. See section on Cumulative Inflation Rate Calculation for sources and the formula.

Source:

• Characteristics and median employment income of postsecondary graduates two years after graduation, by educational qualification and field of study (alternative primary groupings)

Job Growth Projections

CourseCompare assigned each program to a COPS industry segment, based on core career alignment. To get the average projection across all industries, we used the “Growth rate for employment, GDP and productivity 2024-2033” and the “AAGR_Employment_2024_2033” column, taking the average of the entire column, which was 0.91%.

Source for COPS Industry Employment Projections:

• COPS Home > Industry Data > Employment Projections
• COPS Home > Industry Data > Growth rate for employment, GDP and productivity 2024-2033

Sample & Representation

We determined that, based on a minimum viable sample size of 30, we would strive to include programs across Canada’s provinces and territories proportionate to its number of designated education institutions according to Statistics Canada, with the minimum being one (see Table B).

Exceptions

When all provincially-representative options had been exhausted, to ensure we reached the statistically-significant minimum of 30 programs, we replaced outstanding slots with programs from other provinces. The instances when we deviated from the above sample breakdown are:

• Automotive Service Technician: Ontario (9); British Columbia (8); Manitoba (2); Quebec (0); Territories (0)
• Construction/Building Technician: Ontario (9); Alberta (4); Territories (0)
• Graphic Design: Ontario (8); Territories (0)
• Pharmacy Technician/Assistant: Ontario (8); Alberta (6) Prince Edward Island (0); Territories (0)
• Web Development: Ontario (8); Alberta (6); New Brunswick (1); Territories (0)
• Bachelor of Biology/Biological Sciences: Ontario (8); Territories (0)
• Bachelor of Computer Science: Ontario (8); Territories (0)
• Bachelor of Education (Concurrent): Ontario (11); Alberta (6); Quebec (5); British Columbia (3); Saskatchewan (2); New Brunswick (0); Newfoundland and Labrador (0); Prince Edward Island (0)
• Bachelor of Engineering: Ontario (13); British Columbia (6); Alberta (2); New Brunswick (1); Territories (0)
• Bachelor of English/Literature: Ontario (8); Territories (0)
• Bachelor of Fine Arts: Ontario (8); Territories (0)
• Bachelor of Nursing: Ontario (8); British Columbia (8); Quebec (2); Territories (0)
• Bachelor of Political Science: Ontario (8); Territories (0)
• Bachelor of Psychology: Ontario (8); Territories (0)

In two circumstances, provinces have vastly different credential requirements for certain fields: Automotive Service Technician; and Construction/Building Technician. Whereas some provinces such as Ontario typically offer these programs as two-year diplomas, this is often a one-year certificate in provinces such as British Columbia and Alberta. We ensured we included all relevant diploma programs, and then, when necessary, supplemented outstanding slots with certificate programs. This was done only in provinces where a certificate program delivered the same employment eligibility as a diploma. The breakdown of credentials for these programs is:

• Automotive Service Technician: Diplomas (19); Certificates (11)
• Construction/Building Technician: Diplomas (22); Certificates (8)

Formula & Weighting

Cumulative Inflation Rate Calculation

It was necessary to adjust some of our data to reflect 2025 dollar values, in order to produce a ROE Score for 2025.

The process for determining the cumulative inflation rate begins by collecting the Canadian Consumer Price Index (where available). Statistics Canada provides CPI data.

The inflation rate calculation, using CPI data is a simple rate of change formula:

Inflation = ((CPI_Y2 – CPI_Y1)/CPI_Y1)*100 where Y1 = the previous year and Y2 = the current year

Next, the cumulative inflation rate requires an estimate for 2025’s inflation rate. The Bank of Canada provides estimates of inflation for the current year. We can see that the July 2025 estimate for inflation is roughly 2%.

Finally, everything can be put together to produce the cumulative inflation rate multiplier:

Cumulative Inflation Multiplier = (1+ i_Y1)*(1+i_Y2)*(1+i_Y3)*…*(1+i_Yn)

Where i = inflation

Breakeven Calculation

The number of years it takes to break even on a degree/diploma, post graduation, can be expressed as a ratio between the total cost of the education and the annual net gain.

We created the following formula, to determine the breakeven years for each diploma/degree category:

Breakeven Years = (Tuition + Total Debt + Opportunity Cost)/(Post-Graduation Salary – Pre-Program Salary)

To calculate the Breakeven Years, we need to determine the Total Debt, Pre-Program Salary and Opportunity Cost.

The salary after graduating with a high school diploma was assumed to be the pre-program salary, i.e., the salary someone would have earned, had they not entered the program and do not have any other postsecondary education to fall back on.

Statistics Canada collects data on the average salary earned by Canadians with only a high school degree. This data was adjusted for inflation, using our cumulative inflation rate.

The Opportunity Cost is defined as the total Pre-Program Salary earned over the years of studying.

Opportunity Cost = Pre-Program Salary * Average Program Duration

The Total Debt is expressed as the following formula:

Total Debt = Debt at Graduation * (1+Average Weighted Interest Rate)^{Repayment Years}

In order to calculate the Total Debt, we need to estimate the average interest rate a student is paying and determine the standard years to repayment.

The standard student loan is structured for a 9.5 year repayment term.

To determine the average interest rate for students in Canada, we collected and calculated student interest rates using the source listed in the “Student Loan Interest” section of this document.

We used a weighted average formula, with the total percentage of the population under each interest rate group as the relevant weight.

The average weighted interest rate for student loans across Canada, in 2025, is 4.34%.

Baseline Weighted Average

Our data presents two challenges:

1. Many of the variables have an inverse relationship with the ROE Score.
2. The data comes in a range of values, from the tens of thousands to the single digits, and requires normalizing in order for the effect of smaller values to be taken into account for the ROE Score.

The solution is to calculate the ROE Score using a baseline weighted average and applying a baseline normalization ratio, to normalize the variables.

The ROE Score can be calculated using the following formula:

ROE Score = (Salary Weight×Normalized Salary)+(Tuition Weight×Inverse Normalized Tuition)+(Debt Weight×Inverse Normalized Debt)+(Duration Weight×Inverse Normalized Duration)+(Break Even Weight×Inverse Normalized Break-even Years)

To normalize our variables, we will apply to following formula:

Normalized Variable = (x/Baseline Value)

Where the Baseline Value is the average of the data points for a given variable and x is our data point.

For variables with an inverse relationship to the ROE (meaning as the value of the variable increases, the ROE should be decreasing, i.e., tuition). To mitigate the inverse relationship, we would take the inverse normalized variable using the following formula:

Inverse Normalized Variable = (Baseline Value/x)

We use the Job Growth Multiplier to capture future risk or confidence, to create a more robust ROE calculation. The Final ROE can be expressed as the following formula:

Final ROE Score = ROE Score * (1 + (Job Growth Percentage/100))

The ROE Score was transformed by multiplying the final score by 100, to make the values easier to analyze.

Note that the ROE index was calculated separately for degrees and diplomas. The team created a set of baselines for degrees and another set of baselines for diplomas. The return on education for diplomas is compared to the ROE for other diplomas and the same goes for degrees.

The team opted to separate by credential type because degrees are designed to deliver long-term dividends—they open pathways to promotions and higher salaries, with a higher upfront tuition cost, duration and post-grad debt. Combining the two credential types negatively skewed the ROE against degrees. Separating the credentials allows us to compare the ROE for a diploma/degree with more comparable programs.

Note that the same weights were applied for both credential categories.

Weights

The following weights were applied in the baseline weighted average formula.

How to Read a ROE Score

ROE Score > 100 means the program provides a higher than average return

Example: A Final ROE Score of 129 means this programs’ overall return is 129% of the return we would expect from the average program on this list.

ROE Score = 100 means the program provides an average return

Example: A Final ROE Score of 100 means this programs’ overall return is 100% of (and therefore equal to) the return we would expect from the average program on this list.

ROE Score < 100 means the program provides a below average return

Example: A Final ROE Score of 78 means this programs’ overall return is only 78% of the return we would expect from the average program on this list.

Limitations

The ROE Index is a measure of short-term value for money invested, not total lifetime earnings. It focuses on programs that provide the largest return for the smallest investment of time and money in the first years after graduation.

Several important points to keep in mind:

• Short-term focus: The ROE Index measures outcomes based on median salaries two years after graduation. It does not capture longer-term earning potential, career progression, or the value of a diploma or degree as a basis for graduate-level education.
• Pathway effects: Some lower-scoring programs may serve as stepping stones to high-earning careers (e.g., a biology degree leading to medical school). This future potential is not included in the ROE score.
• National averages: ROE scores are based on national data. They aggregate and therefore do not exactly reflect regional wage variations, cost-of-living differences, or local labour market conditions, which may increase or decrease returns for individual graduates.
• Program scope: We analysed the most popular diploma and degree programs in Canada based on proprietary learner data from CourseCompare and StatCan census surveys. There may be niche or emerging programs with strong returns that fall outside this scope.
• Non-financial value: The ROE Index does not measure passion, personal fulfilment, social impact, or other non-monetary outcomes of education.

These limitations mean the ROE Index should be seen as one decision-making tool among others when choosing education and career paths, best used alongside personal priorities, career goals, and other forms of research.

Applications

The ROE Index is meant to help people make smarter, more informed choices about education and career paths—and to spark evidence-based conversations about the value of post-secondary programs.

For students and parents

• Compare the short-term payback of different programs before committing time and money.
• Identify high-value programs that align with career goals and financial constraints.
• Set realistic expectations for debt repayment timelines.

For career changers and pivoters

• Find programs that deliver a strong return quickly, making it easier to pivot careers with less risk.
• Choose fields with higher job growth and lower automation risk.

For policymakers and institutions

• Assess which programs offer the strongest public and private returns in the near term.
• Identify sectors where program costs, debt loads, or breakeven times may warrant policy intervention or funding adjustments.
• Inform labour market planning by connecting education outcomes to job growth projections.

Ultimately, the ROE Index is designed to empower Canadians with transparent, comparable, and actionable data—so they can make educational choices with both their head and their heart.

Explore the 2025 Return on Education (ROE) Index here.

CourseCompare Editorial Team

CourseCompare is Canada's marketplace for education. Its editorial staff consists of award-winning journalists, visual storytellers, data analysts and web developers working together to help prepare people for the future of work.