The Georgetown University Center on Education and the Workforce estimates that the average annual earnings for engineers with a bachelor's degree is $80,000 and the average annual earnings for engineers with a master's degree is $107,600. Is the cost of getting the master's degree worth it? Let's assume you'll spend two years going to graduate school at a cost of $15,000 per year for tuition and books. You'll also be giving up an income of $60,000 per year for those two years, so it will actually cost you $75,000 per year to attend graduate school. However, for the next 40 years, your average salary will be $27,600 per year higher than if you only had a bachelor's degree. What rate of return does this investment represent? a good place to start your search is 16% per year!