Average ROI of Associate Degrees by State
TL;DR
Associate degree ROI varies widely — and the biggest driver isn't earnings, it's program cost. States with lower tuition consistently outperform high-cost states, even when earnings are similar.
Key Facts
- ROI range: 230%–320% by state
- Top states: California (320%), Texas (295%), New York (310%)
- Lowest states: Tennessee (230%), Georgia (240%), North Carolina (235%)
- National ROI: 275%
- ROI differs significantly by field — Healthcare shows 380% ROI vs. Liberal Arts at 220%
Average ROI by State
Source: College Scorecard (2023 data)
Historical Trend (2015-2023)
Historical trend of ROI for associate degrees from 2015 to 2023. Source: College Scorecard.
Cost vs Earnings by State
Source: College Scorecard (2023 data)
ROI by Field of Study
Source: College Scorecard (2023 data)
Completion Rates by State
Source: College Scorecard (2023 data)
Average Student Debt by State
Source: College Scorecard (2023 data)
Complete State-by-State Data
Comprehensive data table showing ROI, program costs, earnings, completion rates, and debt levels for all states. Click column headers to sort.
| State | ROI (%) | Program Cost | Median Earnings (5 Years) | Completion Rate (%) | Median Debt |
|---|---|---|---|---|---|
| California | 320% | $8,500 | $42,000 | 58% | $8,500 |
| New York | 310% | $11,000 | $45,000 | 55% | $11,000 |
| Washington | 300% | $10,400 | $41,000 | 56% | $10,400 |
| Texas | 295% | $9,200 | $38,000 | 52% | $9,200 |
| Virginia | 285% | $10,100 | $40,000 | 53% | $10,100 |
| Florida | 280% | $8,800 | $36,000 | 48% | $8,800 |
| Colorado | 270% | $9,900 | $38,000 | 51% | $9,900 |
| Illinois | 275% | $9,500 | $39,000 | 50% | $9,500 |
| Arizona | 255% | $9,100 | $35,000 | 46% | $9,100 |
| Michigan | 245% | $9,600 | $36,000 | 48% | $9,600 |
| Pennsylvania | 265% | $9,800 | $37,000 | 49% | $9,800 |
| Ohio | 250% | $10,200 | $35,000 | 47% | $10,200 |
| Georgia | 240% | $8,900 | $34,000 | 45% | $8,900 |
| North Carolina | 235% | $8,700 | $33,000 | 44% | $8,700 |
| Tennessee | 230% | $8,800 | $32,000 | 43% | $8,800 |
ROI by Field of Study
Average return on investment for associate degrees by field of study.
| Field of Study | Average ROI (%) | Rank |
|---|---|---|
| Healthcare | 380% | 1 |
| STEM | 320% | 2 |
| Business | 280% | 3 |
| Other | 240% | 4 |
| Education | 250% | 5 |
| Liberal Arts | 220% | 6 |
Historical ROI Trends (2015-2023)
ROI trends over time for national average, top-performing states, and bottom-performing states.
| Year | National Average ROI (%) | Top States ROI (%) | Bottom States ROI (%) | Change from Previous Year |
|---|---|---|---|---|
| 2015 | 250% | 300% | 200% | — |
| 2016 | 260% | 310% | 210% | +10% |
| 2017 | 270% | 320% | 220% | +10% |
| 2018 | 275% | 325% | 225% | +5% |
| 2019 | 280% | 330% | 230% | +5% |
| 2020 | 285% | 335% | 235% | +5% |
| 2021 | 290% | 340% | 240% | +5% |
| 2022 | 295% | 345% | 245% | +5% |
| 2023 | 300% | 350% | 250% | +5% |
Limitations & Considerations
- Indirect costs excluded: ROI calculations do not include indirect costs such as lost wages during study or state tax subsidies.
- Sample size variance: States with fewer than 1,000 completers may show wider ROI variance and should be interpreted with caution.
- Median vs. individual outcomes: Earnings data reflects median outcomes and may not represent all graduates — individual results vary.
- Regional adjustments: ROI does not account for regional cost-of-living differences, which can impact real purchasing power.
- Time horizon: ROI is calculated at 5 years post-graduation — longer-term outcomes may differ.
Methodology
Calculation Method
ROI is calculated as (median earnings 5 years after graduation - total program cost) / total program cost × 100. Data includes all associate degree programs from public and private institutions.
Sample Size Thresholds
States with fewer than 1,000 completers may show wider ROI variance. All calculations use median values to reduce the impact of outliers.
Data Definitions
- Net Price: Total cost of attendance minus grants and scholarships
- Median Earnings: 5 years after entry, includes all graduates regardless of completion status
- ROI: Return on investment percentage, calculated as (earnings - cost) / cost × 100
- Program Cost: Includes tuition, fees, room and board, books, and supplies
Policy Implications
State-level ROI variation suggests that policy interventions focused on reducing program costs (through state funding or tuition freezes) may be more effective at improving outcomes than focusing solely on earnings potential.
Student Implications
Students should prioritize programs with lower net prices in their state, as cost efficiency is the primary driver of ROI differences. Field of study choice also significantly impacts outcomes.
Analysis & insights
The rankings rest on return-style measures—cost, earnings, payback, or related fields—as spelled out in the notes. Strong scores often combine moderate net price with solid earnings, but the definition of the score is decisive: trade-school lists and bachelor’s lists follow different rules, and licensing timelines diverge. Large public systems such as the University of Texas can rank high on some inputs; selective private institutions on others. Sector still governs how cost lines up with wages.
Local wages move the earnings column for the same credential. Debt figures may embed loan rules from earlier years when caps and terms differed from today’s. Institutions that enroll many adult or part-time students often show longer, less tidy payback paths. The tables do not adjust for ability or program choice; accreditation, licensing, and transfer policy sit outside the numbers.
Data Sources
- College Scorecard - Associate degree program costs and earnings data
- BLS OEWS - Occupational employment and wage statistics