Is MS in Computer Science Abroad Worth It If You Are Already Earning Well in India?

    Updated on: 22 May 2022


    Computer Science is one of the most popular subjects in India, and an increasing number of students have been seen opting for it. A large number of students studying computer science can be attributed to the fact that this field promises a high-flying career and a well-paid job. This lure of a bright career also motivates many Indian students to pursue an  MS in Computer Science from abroad. Most students who aspire to study abroad assume that it will open up a plethora of job opportunities after MS in Computer Science and provide them with the maximum global exposure. However, is that really the case? Let us take a look. If you are such a student who has been mulling over whether to quit your well-paying job and head abroad to study MS, then read ahead to know if it is worth it. For the benefit of our readers, we will take up the top four best places to study MS in Computer Science - U.S, Australia, CanadaUK, and Germany - and help them understand if it is worth quitting their job to study an MS in CS at these countries. 

    Looking For An Abroad Education Loan?

    Fill the form to get free expert help

    Should You Go? Do an Opportunity Cost Analysis

    Conducting an opportunity cost analysis is the best way to understand whether it is prudent to leave a well-paying job in India and head abroad for an MS in Computer Science. Comparing the amount invested in pursuing an MS in CS from abroad with the number of opportunities and return on investment available to you after completing the MS in CS abroad is one way to decide whether to take the plunge or not. We understand that this is easier said than done, and hence to help our readers with this, we at GyanDhan have come up with an estimate future earnings tool. Based on a student’s current salary, chosen field of study, and the global ranking of the target college, this tool will give students an NPV figure. 

    What is an NPV?

    An NPV or Net Present Value is the difference between the present value of cash inflows and the present value of cash outflows over a fixed period of time. It is used to understand the profitability of an investment. For students desirous of pursuing an MS in CS from abroad, this can be explained as follows:

    NPV = Money saved abroad - Expenses are borne while studying abroad - Money that could be saved in India by continuing with the current job, discounted to the present at 8% per annum.

    An NPV that equals zero indicates that students will get their original investment back with the required rate of return. A positive NPV indicates a favorable result, while a negative NPV indicates a not-so-favorable result. 

    In this blog, our readers will come across two more terms, namely profit and IRR. Profit is the net extra savings that students make when they choose to study abroad or work there. IRR refers to Internal Rate of Return. IRR is the discount rate that makes the NPV of all cash flows, for a particular project, zero. For our readers, a choice with a higher IRR will be better than an option with a lower IRR. 

    For our analysis, we have taken all the standard factors into account and have made a few standard assumptions too which are as follows:

    • The IRR, NPV and profit values shown here are for 10 years after the moratorium period is complete, that is when the loan repayment starts.
    • Employees in the U.S, Australia, Germany, and Canada get a 2% increment in their salary. They also get a promotion and a 10% increase in salary every alternate year. In India, employees get a 7% increment every year and a 20% salary increase every alternate year.
    • The living expenses (like rent, food, car, utilities, insurance, fuel, etc.) are taken from standard sources and averaged as per each country. Expenses increased by 3% every year in the US, Canada, Germany, and Australia and by 5% in India. 
    • Income tax regimes for all countries are accounted for in our calculations.
    • The average investments in our calculations are the sum of the average tuition fee for the program of the universities falling under a certain rank bracket and the average off-campus cost of living. 
    • In this blog, we have also assumed that 80% of our reader’s education has been funded by education loans, and the remaining 20% was self-funded or paid through scholarships. We have also assumed the loan repayment period to be of 5 years. Our readers can, however, change these parameters on the Estimate Future Earnings tool.
    • For a particular country and college group, we have calculated the net savings in India as well as in the target country. This is done by subtracting the expenses (including income tax and loan repayments) from the income. We have then converted the foreign savings into INR and then calculated the difference between the two net savings.
    • We have also taken into account the current currency exchange rates of the targeted countries’ currencies and INR and have also considered the expected changes in the forex rates. This has been done by using forward rates for 10 years.

    With these assumptions in mind, let us start answering the original question - whether it is worth studying MS in CS abroad if you are earning well in India. For this, let us look at the top five countries one by one. Since there is a large number of colleges in each country, we have clubbed the colleges in four rank groups and will be taking a look at each of the groups for three different salary levels. Scroll down to your salary level to see results for your profile. If your salary level happens to be in between the numbers we’ve taken here, you can either interpolate for an approximate result or use our estimate future earnings tool - for a more accurate picture.  So, without further ado, let us begin.

    Check Your Education Loan Eligibility Apply Here

    The United States of America 

    For a Current Salary of INR 5 lakh in India 

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      2.09 Crores  

    105%

    3.7 Crores

    51-100

    1.9 Crores

      100%  

      3. 4 Crores  

    101-250

    1. 7 Crores

    98%

    3. 1 Crores

    251-500

    1.5 Crores

    95%

    2.6 Crores

     

    Verdict - As we see from the above table, the NPV is positive and very high for all rankings in the US. Hence, if you are currently earning INR 5 lakhs in India and get a chance to do an MS in CS in the US, you should certainly choose to do it.

    For a Current Salary of INR 15 lakhs (India)  

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

    1 Crore

    45%

    2 Crore 

    51-100

      86 Lakhs  

      40%  

    1.7 Crores

    101-250

    72 Lakhs

    37%

      1.4 Crores  

    251-500

    44 Lakhs

    28%

    96 Lakhs

     

    Verdict - On studying the above table, we again see that the NPV, IRR, and profit are all very high for US colleges of all rankings. So, if you are an Indian currently earning INR 15 lakhs in India and get a chance to study MSCS in the US, then you should definitely go for it. 

    For a Current Salary of INR 25 lakhs (India)  

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

    ₹ 83000

    8%

    32 Lakhs

    51-100

      (-) 16 Lakhs  

    1%

    2 Lakhs

    101-250

    (-) 30 Lakhs

      Negative  

      (-) 22 Lakhs  

    251-500

    (-) 6 Lakhs

    Negative

    (-) 73 Lakhs

     

    Verdict - For those who are earning INR 25 lakhs in India, it only makes sense to study MSCS in the US if the college ranks within the top 50 globally. For all other colleges, the NPV is negative. The profit too is very low (for colleges ranked between 51 and 100) or negative for lower-ranked colleges. This means that the students would earn and save more (except for colleges ranked between 1 and 50) by continuing to work in India, and thus it is not worth pursuing an MSCS in the US in colleges ranking 51 and 500 globally.

    Read Also Is studying MS in Material Science in US Worth it

    Canada 

    For a Current Salary of INR 5 lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      ₹ 95 Lakhs  

    63%

      1.7 Crores  

    51-100

    1.1 Crore

      106%  

    2 Crores

    101-250

    1 Crore

    100%

    1.8 Crores

    251-500

    76 Lakhs

    78%

    1.3 Crores

     

    Verdict - The NPV seen here, for the colleges of all rankings, is positive and high - indicating a profitable investment. This means that students who are currently earning INR 5 lakhs a year should opt to study MS CS in Canada.

    For a Current Salary of INR 15 lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      (-) 9.6 Lakhs  

    3%

    7.3 Lakhs

    51-100

    8.6 Lakhs

    14%

    29.5 Lakhs

    101-250

    (-) 2.1 Lakhs

    6%

    11 Lakhs

    251-500

    (-) 28 Lakhs

      Negative  

      (-) 33 Lakhs 

     

    Verdict - This table makes for interesting reading. Even the top 50 global universities are negative - this is because of the high average cost of such universities. Average cost reduces in universities ranked 51-100 globally, as a result of which the NPV becomes positive. For colleges ranked below 101, NPV is negative, despite their low cost of education. We can thus conclude that Indian students who are currently earning INR 15 lakhs a year may study an MS in CS in a Canadian college which is ranked in the top 100. Colleges ranked lower than that are not worth quitting your current job in India.

    For a Current Salary of INR 25 lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      (-) 1.1 Crores  

      Negative  

    (-)1.6 Crores

    51-100

    (-) 94 lakhs

    Negative

      (-) 1.4 Crores  

    101-250

    (-) 1 Crore

    Negative

    (-) 1.5 Crores

    251-500

    (-) 1.3 Crore

    Negative

    (-) 2 Crores

     

    Verdict -  NPV, IRR, and Profit for students earning INR 25 lakhs a year are negative. We can thereby conclude that it is not a good idea for such students to pursue an MS in CS from Canada.

    Read Also Is Studying MS in Material Science in Canada Worth it

    Germany

    For a Current Salary of INR 5 lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      99 Lakhs  

      115%  

    1.7 Crores

    51-100

    91 Lakhs

    116%

      1.6 Crores  

    101-250

    83 Lakhs

    113%

    1.4 Crores

    251-500

    60 Lakhs

    87%

    1 Crore

     

    Verdict: We see a high and positive NPV, IRR and Profit for colleges of all rankings. This means that if a student is earning INR 5 lakhs a year in India currently and has the option to study MSCS in Germany, he/she should definitely choose to study in Germany. The investment made in studying in Germany will be highly profitable.

    For a Current Salary of INR 15 lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      (-) 5.2 Lakhs  

    2%

    3.3 Lakhs

    51-100

    (-) 13 Lakhs

      Negative  

      (-) 10 Lakhs  

    101-250

    (-) 21 Lakhs

    Negative

    (-) 24 Lakhs

    251-500

    44 Lakhs

    Negative (-) 63 Lakhs

     

    For a current Salary of INR 25 Lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

    (-) 1 Crore

    Negative

    (-) 1.6 Crores

    51-100

    (-) 1.1 Crores

    Negative

      (-) 1.8 Crores  

    101-250

    (-) 1.2 Crores

      Negative  

    (-) 1.9 Crores

    251-500

      (-) 1.47 Crores  

    Negative

    (-) 2.3 Crores

     

    Verdict: Both the above tables clearly indicate a negative NPV, IRR and Profit values for salaries between INR 15 and 25 lakhs in India. It is therefore not a wise decision to study MSCS in Germany for such students.

    Read Also Is Studying MS in Material Science in Germany Worth it

    Australia

    For a Current Salary of INR 5 Lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

      80 Lakhs  

      55%  

    1.5 Crores

    51-100

    75 Lakhs

    56%

      1.4 Crores  

    101-250

    66 Lakhs

    52%

    1.2 Crores

    251-500

    44 Lakhs

    39%

    91 Lakhs

     

    Verdict: NPV, IRR, and profit for students who currently earn INR 5 lakhs in India are positive and quite high. If such students get an opportunity to study MSCS in Australian colleges that rank in the top 500, they should certainly go for it.

    For a Current Salary of INR 15 Lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

    (-)24 Lakhs

      Negative  

    (-)17 Lakhs

    51-100

      (-) 30 Lakhs  

    Negative

      (-) 28.49 Lakhs  

    101-250

    (-) 38 Lakhs

    Negative

    42.86 Lakhs

    251-500

    (-) 60 Lakhs

    Negative

    (-) 80 Lakhs

    For a Current Salary of INR 25 Lakhs (India)

      Target College Global Rank  

    NPV

    IRR

    Profit

    1-50

    (-)1.2 Crores

      Negative  

    (-)1.8 Crores

    51-100

      (-) 1.33 Crores  

    Negative

      (-) 1.98 Crores  

    101-250

    (-) 1.41 Crores

    Negative

    (-) 2.12 Crores

    251-500

    (-) 1.63 Crores

    Negative

    (-) 2.5 Crores

     

    Verdict: NPV, IRR, and Profit values for students having salaries between INR 15 and 25 lakhs are negative for the Australian colleges of all rankings. It is therefore advisable for them to keep working in India rather than studying MSCS in Australia.

    MS CS in the US or Canada- Which is Better?

    Both the United States and Canada are excellent destinations for MS in CS. However, there are few significant differences if we compare them. In terms of world university rankings, the US universities come out as a clear winner. Though living expenses are more in the US than Canada, the average earning after course is higher in the US (as shown in the tables before). Also, the US job market is bigger than the Canadian. At the same time, job opportunities in Canada are slightly more secure due to the lesser influx of students (which decreases competition in the job market) in comparison to the USA.
     

    Read Also Is Studying MS in Material Science in Australia Worth it

    Conclusion: There is no doubt that for students currently earning < INR 15 lakhs in India, an MS in CS from the US is a good decision. Studying MSCS in Canadian colleges that rank in the top 100 too is a good decision for such students. For countries like Germany and Australia, studying MSCS only makes sense if a student is earning around INR 5 lakhs a year in India.

    First published date:


GyanDhan is India's first education financing marketplace.

Upcoming Events

Business Degree at Deakin University & Great Lakes

  Sat, June 04, 2022    18:00 IST

Study Loans for the UK, Ireland, & Canada

  Fri, May 27, 2022    18:00 IST

How to Plan your Education Loan Repayment

  Fri, June 10, 2022    18:00 IST




Looking For Help in Foreign Education Loan? Arrange a Call From an Expert:

By entering my phone number here, I hereby authorize GyanDhan to contact me. It will override my registry on the NCPR/NDNC.