The Net Price Calculator is a crucial tool for prospective students and their families to estimate the actual cost of attending a college after accounting for potential financial aid. Unlike a simple tuition fee, the net price represents what a student and their family will realistically pay out-of-pocket or through loans after grants, scholarships, and other institutional aid are deducted from the total cost of attendance.
While MIT's specific calculator is proprietary and uses a complex algorithm that considers numerous factors, the general principles behind net price calculations involve assessing a family's ability to pay. This ability is typically determined by analyzing income, assets, household size, and the number of children in college.
General Calculation Logic (Simplified Example):
Net Price is generally calculated as:
Total Cost of Attendance - Institutional Aid (Grants & Scholarships)
The challenge lies in estimating the Institutional Aid. Colleges use formulas to determine Expected Family Contribution (EFC) or Student Aid Index (SAI), which represents the minimum amount a family is expected to contribute.
Factors Considered (and simplified in this calculator):
Parental Income: A primary driver of EFC/SAI. Higher income generally means a higher expected contribution.
Parental Assets: Savings, investments, and home equity (though home equity is often excluded or treated differently) are considered. A portion of these assets is typically expected to be contributed.
Student Income and Assets: Student contributions are usually expected to be higher percentages of their income and assets compared to parents.
Household Size: A larger household can indicate greater financial needs, potentially reducing the EFC/SAI.
Number of Children in College: If multiple children are attending college simultaneously, the EFC/SAI is often divided among them.
Cost of Attendance (COA): This includes tuition, fees, room, board, books, supplies, and personal expenses.
This simplified calculator aims to give you a rough estimate. Real-world financial aid packages are complex and may include federal aid, state aid, and institutional grants or scholarships based on need and/or merit. For the most accurate figures, always use the official Net Price Calculator provided by the institution you are interested in.
Disclaimer: This calculator is for illustrative purposes only and does not guarantee financial aid. It simplifies complex financial aid formulas. Consult MIT's official financial aid office for precise information.
function calculateNetPrice() {
var parentIncome = parseFloat(document.getElementById("parentIncome").value);
var parentAssets = parseFloat(document.getElementById("parentAssets").value);
var studentIncome = parseFloat(document.getElementById("studentIncome").value);
var studentAssets = parseFloat(document.getElementById("studentAssets").value);
var householdSize = parseInt(document.getElementById("householdSize").value);
var collegeExpenses = parseFloat(document.getElementById("collegeExpenses").value);
var resultValueElement = document.getElementById("result-value");
// Basic validation for inputs
if (isNaN(parentIncome) || isNaN(parentAssets) || isNaN(studentIncome) || isNaN(studentAssets) || isNaN(householdSize) || isNaN(collegeExpenses)) {
resultValueElement.textContent = "Please enter valid numbers.";
return;
}
// — Simplified MIT-like Net Price Calculation Logic —
// This is a highly simplified model. MIT's actual calculation is proprietary and more complex.
// We'll simulate expected contributions from income and assets.
// Simplified Expected Family Contribution (EFC)
var expectedFamilyContribution = 0;
// Income Contribution (e.g., 20-40% of parent income, 50% of student income)
var parentIncomeContribution = parentIncome * 0.30; // Assuming 30% contribution from parent income
var studentIncomeContribution = studentIncome * 0.50; // Assuming 50% contribution from student income
// Asset Contribution (e.g., 5-10% of net parent assets, 20-30% of net student assets)
// Let's assume net assets are total assets for simplicity.
var parentAssetContribution = parentAssets * 0.07; // Assuming 7% contribution from parent assets
var studentAssetContribution = studentAssets * 0.25; // Assuming 25% contribution from student assets
// Adjust for household size – more people means less contribution per person
// This is a very crude adjustment.
if (householdSize > 0) {
expectedFamilyContribution = (parentIncomeContribution + studentIncomeContribution + parentAssetContribution + studentAssetContribution) / householdSize;
} else {
expectedFamilyContribution = parentIncomeContribution + studentIncomeContribution + parentAssetContribution + studentAssetContribution;
}
// Ensure EFC doesn't go below a minimal amount if income is very low
if (expectedFamilyContribution < 1000) { // Minimum expected contribution threshold
expectedFamilyContribution = Math.max(expectedFamilyContribution, 1000);
}
// Net Price = Total Cost of Attendance – Expected Family Contribution
var netPrice = collegeExpenses – expectedFamilyContribution;
// Ensure net price is not negative (meaning aid covers more than cost)
if (netPrice < 0) {
netPrice = 0;
}
// Format the result as currency
resultValueElement.textContent = "$" + netPrice.toLocaleString(undefined, {
minimumFractionDigits: 0,
maximumFractionDigits: 0
});
}