Forecasting the costs of a postsecondary intervention before implementation is often essential for two reasons:

1. Budgeting. It helps practitioners plan and allocate resources they need to pay for the intervention.
2. Informing minimum detectable effect calculations. The forecasted cost can help researchers determine the minimum detectable effect that justifies the intervention’s expense.

For example, if an intervention is expected to cost $15,000 per student, researchers might be comfortable with a relatively large minimum detectable effect—such as a 10 percentage point increase in degree completion—since smaller effects may not be cost-effective. Conversely, small effects from an intervention that costs $50 per student might be considered worthwhile, leading researchers to plan a study with a smaller minimum detectable effect.

It is important to note that costs that are relevant for program budgeting usually represent only a portion of the total social costs that are considered in minimum detectable effect calculations.

MDRC’s cost calculator is designed to help colleges forecast the cost of implementing College Promise programs. It can also be used to estimate costs for interventions that include tuition or textbook waivers, financial incentives, coaching, or advising, with flexibility to incorporate additional program components.