From standardized testing to submitting college applications, the admission process is never an easy experience.

And even when you finally receive your acceptance letters the next challenge is deciding where you want to spend the next four years of your life.

In this article, you’ll learn how to estimate your out-of-pocket costs (net price) so you can decide which school makes the most financial sense for you.

Step 1: Create an Excel sheet or write it all down

You can use this simple Excel sheet we created to estimate your out-of-pocket costs (net price) or write it down on a piece of paper. If you’re interested in using it, you can download it here.

Step 2: Determine your cost of attendance (CoA) for each school

Start by itemizing every direct and indirect expense you will, or likely will, incur during one year of that college (multiply this value by “4” to estimate the cost of your degree there).

Tip: If your financial aid letter does not give you an itemized list of costs, ask the financial aid office.

Direct costs are expenses that are explicitly and plainly spelled out in your college bill while indirect costs are estimated expenses and vary each year (ex: grocery bill).

Direct Costs:

• Tuition
• Student fees
• Room and board (or rent)
• Student health insurance *can be waived if you already have coverage

Indirect Costs:

• Books and supplies
• Transportation (ex: gas, bus pass)
• Living expenses (ex: meals, hygiene products)
• Miscellaneous expenses (ex: recreation, subscriptions, car maintenance)

If you’re using our Excel sheet, input the dollar amount into each UNBOLDED row (“EXPENSES”). You can find these numbers in your financial aid letter, on the college website, and by asking the financial aid office.

Here’s an example of a public school (UCLA) for an in-state student living on-campus for the 2022-2023 academic year.

Tip: This Excel sheet will calculate your total expenses and break them down by direct versus indirect costs.

Tip: It is better to overestimate your expenses and underestimate your aid to avoid being caught off guard.

Step 3: Breakdown your financial aid

Now, itemize each aid offered in your award letter to give yourself a more accurate picture of your ability to pay for that school.

If you’re using our Excel sheet, input the dollar amount into each UNBOLDED row (“FINANCIAL AID”). You can find these numbers in your financial aid letter.

Financial Aid:

• Grants (free money)
• Scholarships (free money)
• Parental contribution (free money)
• Personal savings (free money)
• Work-Study/Employment (earned money)
• Loans (borrowed money)

Let’s assume you were awarded $32,495 in aid for the academic year.

Note: Your award letter is what’s offered to you meaning that you can pick and choose which aid you accept (you can decline loans but accept everything else).

Note: Don’t take loans if you can avoid them or consider other options first (ex: scholarships)! If you do take out loans, know how much you and your family can reasonably repay. 

Tip: This Excel sheet will calculate your total aid and break it down by free (money you don’t have to repay), earned (money you have to work for), and borrowed money (money you must repay).

Step 4: Take the CoA and deduct it by your financial aid amount

Once you know your cost of attendance and financial aid amount, take your CoA and subtract your aid.

What’s leftover will be your estimated out-of-pocket costs or net price of attending one year at that college (assuming your costs exceed your aid).

In this example, the CoA at UCLA is estimated to be $37,948 while your hypothetical financial aid is $32,495. This means your estimated out-of-pocket cost for that academic year is $5,453.

Note: If you’re using our Excel sheet, a negative dollar value is a GOOD thing. It means your total aid exceeds the cost of attending that college.

Note: If you’re using our Excel sheet and choose not to accept any loans, add “0” in the corresponding spot (“FINANCIAL AID”).

Step 5: Do this simple calculation for every school that sent you a financial aid letter

It’s that simple! Repeat these steps for the other schools you were admitted to.

Let’s assume you were also admitted to a private (Columbia) and public (SUNY) out-of-state school.

Step 6: Compare the estimated out-of-pocket costs of each school

Once you have the out-of-pocket costs for each school (“OUT-OF-POCKET COSTS”), compare them to one another.

In this hypothetical example, SUNY would be the most affordable school followed by UCLA while Columbia would be the most expensive (keep in mind that you’ll pay this amount EVERY YEAR you’re at that school).

It’s important that you have all of this information not because you’re expected to go to the least expensive school, per se, but so you can make an INFORMED DECISION.

Related: While it’s important to know the net price of attending a college, it could be misleading. Check out this article to learn more.