A data-centric assessment of the financial gains achieved by obtaining bachelor’s and master’s degrees in engineering from foreign educational institutions — and their comparison with those obtained from local institutions.

Investors are well aware of the meaning and usage of the term risk-adjusted return. This notion is applicable here as well — if human capital is understood as the knowledge obtained through education, it is clear that evaluating investment of money into education requires analysis of its financial benefits and career results obtained with its help. Hence, those who have to decide whether to study abroad or not must answer the question whether a degree obtained abroad delivers its benefits or not. 

Statistical data obtained from salary surveys, employer research, and studies of how graduates perform gives evidence that for engineering majors and graduates, an international degree obtained from a reliable university located in a corresponding country provides risk-adjusted returns which seldom can be offered by institutions in the US.

The baseline: what engineering graduates actually earn

In terms of earnings, engineering is one of the most lucrative fields of study throughout the world and an important finding in labour market research is that the increase in salary between a Bachelors and a Masters in engineering is one of the most consistent transitions in this area. However, in addition to a degree, it is also crucial to consider the national context in which the degree has been obtained and how it impacts earnings on the labour market on the one hand and how it opens opportunities globally on the other hand.

$110K

Median starting salary for engineering Master’s graduates at top US universities (Levels.fyi 2025)

40%

Average salary premium for internationally educated engineers vs. domestic-only peers over a career (OECD)

2.8×

Median payback period in years for a top-tier engineering Master’s degree at current salary differentials

$185K+

Total compensation for senior software/systems engineers at US tech companies — accessible via international MSc pathway

Cost versus return: the core financial model

The argument for the financial intelligence of studying engineering abroad is formulated based on a very simple model; one looks at the overall expenses of getting the degree (tuition, living expenses, lost income from work) vs. the present value of net salary earned over the course of one’s career. The connecting variables that make international engineering degrees so interesting are tuition arbitrage and salary convergence, both of which play a crucial role.

Country / Programme	Degree	Total cost (USD)	Entry salary (USD)	Payback period
🇺🇸 MIT / Stanford (USA)	MSc Engineering	$85,000–110,000	$130,000–160,000	~1.5–2 years
🇨🇭 ETH Zürich (Switzerland)	MSc Engineering	$8,000–15,000	$95,000–120,000	~0.2–0.3 years
🇩🇪 TU Munich (Germany)	MSc Engineering	$5,000–12,000	$70,000–95,000	~0.2–0.3 years
🇨🇦 University of Toronto (Canada)	MSc Engineering	$35,000–55,000	$85,000–110,000	~0.8–1.2 years
🇬🇧 Imperial College London (UK)	MEng / MSc	$38,000–52,000	$75,000–105,000	~1.0–1.5 years
🇸🇬 NUS / NTU (Singapore)	MSc Engineering	$28,000–42,000	$65,000–90,000	~0.8–1.2 years
🇳🇱 TU Delft (Netherlands)	MSc Engineering	$15,000–25,000	$65,000–85,000	~0.5–0.8 years

The arbitrage opportunity is obvious. A master’s degree in engineering from ETH Zurich, which is among the top five universities in the world for engineering, is much more affordable than a similar education in the US, producing graduates who can compete for the same job at the same companies. The convergence of salaries in the global technology market indicates that it is the place of work rather than the place of education that is the determining factor for the salary level of senior engineers hired in the industry. Thus, a graduate of either Zurich or Munich who is hired in a US tech company will earn the same salary as a graduate of Stanford who takes the same position.

“In engineering, the degree is what matters most. The company you work at determines how much you get paid. Studying abroad in a prestigious university and then entering a job in the United States or the United Kingdom brings the same wealth or possibly even more wealth compared to studying domestically at a fraction of the cost.”

Bachelor’s versus Master’s: the degree-level investment decision

The economic factors concerning the two options differ considerably between Bachelor’s and Master’s degrees in engineering, making the decision dependent on where the student stands academically and professionally. 

A full Bachelor degree obtained abroad, taking three to four years depending on the country of study, is the best solution for those who have never earned any engineering qualifications. The Bachelor’s offers comprehensive training with in-depth technical knowledge and skills and the opportunities of networking during the four years of study. Furthermore, the price difference, as one can also receive a full Bachelor degree from a German or Dutch university that charges very low tuition fees even for international students, is the greatest at this level. 

A Master’s degree that normally takes one or two years to complete at an international university will be a better option for students who have already earned their Bachelor degree in engineering or any other technical discipline. Studying for a Master’s will bring a quicker return on investment in academic credentials, allowing students to obtain a specific qualification necessary for work in industry, research or further academic studies.

The programmes that deliver the strongest financial outcomes

There are differences in the financial success of international engineering programmes. The schools with the best earning outcomes for graduates combine strong academic credentials with immediate industry links — either because they are located near large employers or because they conduct research involving the companies that hire their graduates.

🇨🇭

ETH Zürich — D-MAVT / D-INFK

Total cost: ~$8K–15K

QS rank: #5 globally for engineering. Graduates access Zürich’s financial and tech sector directly. High placement rate at Google, Microsoft, McKinsey. Exceptional ROI.

🇩🇪

TU Munich — Mechanical / Electrical

Total cost: ~$5K–12K

Direct industry partnerships with BMW, Siemens, Airbus, SAP. Minimal tuition at public university. Strong placement in German and EU engineering sector with rising salaries post-2024.

🇬🇧

Imperial College London — EEE / Computing

Total cost: ~$40K–52K

Consistently top-3 in UK for engineering graduate salaries. London location provides direct access to financial services, deep tech, and consultancy. Strong US firm recruitment pipeline.

🇨🇦

University of Toronto — MASc / MEng

Total cost: ~$35K–55K

Post-study work rights of up to 3 years. Strong AI research profile — Vector Institute affiliation. Direct pipeline to Canadian tech sector with rising salaries and clear PR pathway.

🇳🇱

TU Delft — Aerospace / Systems

Total cost: ~$15K–25K

Europe’s leading aerospace and systems engineering faculty. English-medium MSc. Access to Netherlands’ high-density tech employer base including ASML, Philips, and Shell.

🇸🇬

NUS / NTU — EE / Computer Engineering

Total cost: ~$28K–42K

Asia’s top-ranked engineering schools. Gateway to Southeast Asia’s fastest-growing tech market. Strong semiconductor and hardware engineering pipeline — critical as global supply chains rebalance.

The optionality premium: what the financial model misses

The usual ROI calculation only accounts for the difference in salary earned over the years. It misses out the two important factors relevant in engineering careers: geographic optionality and network effects.

Geographic optionality means that an engineer can work in multiple labor markets. An engineer with an International degree is able to apply for work in multiple countries. For instance, ETH Zürich graduates are qualified to work in Switzerland, Germany, EU, and USA. An engineer trained exclusively in his/her home country lacks that. Furthermore, the highest-paid engineering roles are currently concentrated primarily in few geographical areas – US tech hubs, London finance, Swiss craftsmanship, and Singapore’s semiconductor industry. Therefore, being able to work in these areas without a need of local accreditation is quite valuable, but the traditional ROI practice does not consider that.

Network effects generated by an international engineering education are also underestimated. Students at a foreign engineering school form a community consisting of future founders, managers, and researchers. During the years of studying in a graduate program, these professionals significantly expand their network of potential employers and increase students’ chances of getting hired.

Investment thesis summary

The economic case for engineering students with the required qualifications to get accepted in one of the top international programs remains persuasive in several relevant scenarios. Public universities in Europe (Germany, Netherlands, Switzerland) present the highest net ROI — world-class engineering education at low tuition costs. Programs in the UK and Canada offer a considerable mix of reputation, English instruction, and work rights after graduation. Programs in the US provide the students with the highest absolute salary prospects but with the lowest ROI due to high tuition fees. European arbitrage continues to be attracted by investors in human capital particularly in Germany and Switzerland.

Bottom line

The reason why studying engineering abroad is financially viable does not relate to cultural value and status — although both things are also very real. The reason lies in simple calculations regarding costs, returns, and options. Public universities on the Old Continent deliver high-level education in engineering at incredibly low tuition rates compared to similar institutions in the USA and Australia and produce skilled specialists who are equally likely to get the same jobs in global companies. The difference between the salaries of engineers graduating from local universities and those graduating from institutions such as ETH Zürich or TU Munich is almost negligible in well-paid fields of the global market, whereas the cost difference is huge. Their ratio makes investments into overseas engineering education one of the best investments in human capital.