Do online degrees increase salary? Are their salary growth rates equal to those of traditional degrees? What does the long-term data show?
If you’re asking these questions, you’re on the right page. Here, we’ll discuss online and traditional degrees and their:
Salary comparisons
Graduates of online and in-person programs often earn similar average starting and mid-career salaries.
5-Year and 10-Year Growth Trends
In the next 5 and 10 years, bachelor’s degree holders experience stronger career growth than those without one.
Return on investment (ROI)
Online degrees may provide a higher ROI because of their lower costs from reduced:
- Tuition and fees
- Commuting and living costs
- Opportunity costs
- Completion time
Employer Perception Insights
There’s a growing acceptance of accredited online degree programs, too.
So, if you’re interested in how online degrees affect salary, read on.
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Quick Answer: Do Online Degrees Increase Salary?
Yes, online degree salary growth is generally similar to traditional degree salary growth. But it must have been earned from an accredited and reputable institution.
But salary growth depends more on these factors:
Field
STEM jobs usually have higher pay than, say, the social sciences. Computer and information technology occupations earned $105,990/year (BLS, May 2024). Life, physical, and social science occupations earned $78,980/year.
Level of Degree
In general, the higher the degree level, the higher the earning potential. In fact, advanced degrees typically accelerate income growth. According to the BLS, Education Pays 2024, here are the median weekly wages for different degree levels.
- Bachelor’s: $1,543
- Master’s: $1,840
- Doctoral: $2,278
- Professional: $2,363
Work Experience
Of course, relevant work experience matters in your earning potential. Workers with 5-9 years of experience earn 15% more than those with <5 years. Workers with 20+ years of experience can earn >50% more than entry-level workers in the same occupation.
Online Degree vs Traditional Degree: Salary Comparison
In an online degree vs traditional degree salary, research has shown favorable outcomes. Graduates of online and on-campus bachelor’s degree programs:
- Get offered identical starting salaries
- Earn the same average annual starting ($68,500) and mid-career ($89,900)
- Enjoy comparable long-term outcomes
Again, earnings are driven more by field, degree level, and work experience.
Also, employers focus more on the institution’s accreditation and reputation. The delivery format – online or in-person – is a secondary issue.
There are fields where differences are more likely to appear. Here, hands-on training, physical lab experience, or in-person interactions are vital.
- Healthcare and clinical fields
- Engineering and lab-based sciences
- Creative industries
| Degree Type | Starting Salary | 5-year Salary | 10-year Salary |
| Associate’s Degree | $40,000-$50,000 | $50,000-$60,000 | $60,000-$70,000 |
| Bachelor’s Degree | $60,000-$70,000 | $75,000-$95,000 | $90,000-$110,000 |
| Master’s Degree | $70,000-$85,000 | $90,000-$110,000 | $110,000-$140,000 |
Note: These are average salaries across industries.
Salary Growth by Degree Level (Online Programs)
The BLS and NCES agree – earnings increase significantly with each higher degree level. The median annual earnings for 25- to 34-year-olds who worked full-time year-round are:
- High school graduate: $41,800
- Some college, no degree: $45,200
- Associate’s degree: $49,500
- Bachelor’s degree: $66,600
- Master’s degree: $80,200
Online Associate Degree
With an online associate’s degree, you have an affordable and fast entry into the workforce. The entry-level wage impact from those without a degree is significant, too, as seen above.
Online Bachelor’s Degree
An online bachelor’s degree salary increase over an associate’s degree is $17,100/year. Bachelor’s degree holders are also more competitive for promotions and specialized roles earlier in their careers.
Online Master’s Degree
An online master’s degree salary boost over a bachelor’s degree is $13,600/year. It also boosts your competitiveness for management and leadership roles. A master’s degree is a must, too, for specialized fields, such as healthcare and education.
Long-Term Salary Growth (5-Year & 10-Year Outlook)
The long-term salary growth with an online degree is comparable to that of a traditional degree. Both online and traditional degrees also follow the same pattern. Starting salaries matter, but it’s only the beginning. For long-term growth, the salary differences are influenced by these factors.
Compounding Income Growth
Even a modest salary increase every year will result in a significant amount over 5-10 years.
Here’s a projected lifetime earnings comparison to look at it another way:
- Associate’s degree: $1.98 million
- Bachelor’s degree: $2.66 million
- Master’s degree: $3.21 million
- Promotions and career pivots
Degree holders are more competitive for career advancement or change opportunities. Over 5-10 years, these can multiply earnings.
Networking Impact
This is an often underestimated aspect, but it increases earning potential. Your connections can lead to higher-paying jobs.
Field Matters More Than Format
When it comes to how online degrees affect salary, the field of study matters more than the delivery format. As we mentioned above, workers in STEM fields usually earn higher salaries than those in the social sciences. This is generally true whether the degree was earned in an on-campus or online program.
Here’s a comparison of salary growth by field for reference.
| Field | Salary Growth Insights | Lifetime Earnings Potential |
| Technology | Rapid salary growth due to strong demand. Above-average entry-level salaries. Six-figure roles within 5–10 years. | $3–$4 million |
| Healthcare | Structured salary increases and stable demand. Increased income from advanced credentials or certifications. | $2.5–$3.5 million |
| Business | Moderate starting salaries with strong promotion potential. Significant increase in long-term income from leadership roles. | $2.5–$3.5 million |
| Education | Lower starting salaries but steady salary growth. Advanced degrees and certifications lead to higher-paying roles. | $2–$2.8 million |
| Criminal Justice | Lower starting salaries but steady salary growth, too. | $1.8–$2.5 million |
Return on Investment (ROI) of Online Degrees
Are online degrees worth it financially? Yes, they are, but you must leverage your online degree from an accredited and reputable institution.
The return on investment of online degrees differs depending on these factors.
- Average tuition and fees: Online degrees tend to cost 10-40% less than on-campus degrees.
- Opportunity cost savings: Online students can continue working while in college. So, it reduces lost wages and payback period.
- Reduced commuting/living expenses: This can result in thousands of dollars saved over the years.
- Time-to-degree flexibility: Online students can choose between self-paced and accelerated programs.
| Degree | Average Cost | Salary Increase vs. High School | Breakeven Time |
| Associate’s | $10,000-$30,000 | +$7,700 | 3-5 years |
| Bachelor’s | $40,000-$120,000 | +$24,800 | 5–10 years |
| Master’s | $25,000-$60,000 | +$38,400 | 5-15 years |
Employer Perception of Online Degrees in 2026
Today, the employer perception of online degrees is more favorable. Indeed, there’s a growing acceptance of online programs. But these must be offered by accredited and reputable institutions. Accreditation is a key factor because it signals compliance with strict academic standards.
The normalization of remote education started during the COVID-19 pandemic. Major universities started offering more online courses and programs during this period. Harvard, Stanford, and UPenn are foremost examples.
Remote Work & Salary Acceleration
Online degrees often pair well with remote-friendly careers, too. As an online student, you’re also well-prepared for the demands of virtual workplaces.
After all, you’re familiar with digital communication and collaboration tools, among others. You’re also well-versed in the digital tools of your trade from years of using them.
Consider these remote-friendly careers with your online degree. (Amounts are median annual salaries per BLS May 2024).
- Information technology
- Instructional design
- Healthcare administration
- Project management
You can also enjoy the benefits of geographic salary arbitrage. This means earning salaries associated with high-cost metro areas while working from a lower-cost area. You can, say, work for a Los Angeles company but live in a rural area.
Factors That Influence Salary Growth More Than Degree Format
These factors matter more in your salary growth than whether you have an online or traditional degree.
- Work experience. The more you gain experience, the more advanced your skills can be, and the more competitive you can be for promotions.
- Industry demand. Being in a high-demand industry can lead to faster salary growth.
- Certifications. These can boost earning potential and career mobility, especially in high-demand roles.
- Geographic locations. Major urban centers usually pay higher wages but also have a higher cost of living.
- Networking. Your connections can lead to better job offers and faster promotions.
Frequently Asked Questions
1. Are online degrees respected by employers?
Yes, but these must be from accredited and reputable institutions.
2. Do online degrees pay less?
Not necessarily. Studies have shown that graduates of online and traditional programs earn comparable starting and mid-career salaries.
3. Is an online master’s degree worth it financially?
Yes, if it leads to higher-paying specialized and leadership roles.
4. How long does it take to see a salary increase?
Most graduates see a noticeable salary increase 1-3 years after graduation.
5. Which online degrees have the highest ROI?
Technology, engineering, healthcare, and business.
Structured Comparison Chart
| Factor | Online Degree | Traditional Degree |
| Cost | Lower average | Higher average |
| Flexibility | High | Moderate |
| Salary Growth | Comparable | Comparable |
| Networking | Virtual + in-person | In-person |