Colleges, Universities, and Professional Schools Revenue Benchmarks
The average colleges, universities, and professional schools business in the United States generates $64.9M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 2,494 colleges, universities, and professional schools businesses in the U.S., employing 1,703,614 workers with an average profit margin of 10.0%. The average employee in this industry earns $81K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Colleges, Universities, and Professional Schools Business Actually Do?
Higher education institutions — 4-year public/private, community colleges, professional schools (law, med, business).
Who buys: Students, employers subsidizing education, government (Pell grants, student loans).
Average Revenue
$64.9M
per year
Profit Margin
10.0%
industry average
Revenue / Employee
$95K
per year
Total Businesses
2,494
in the US
Est. Owner Income
$6.5M
small business avg
Labor Cost
55.0%
of revenue
Avg Employee Wage
$81K
per year (BLS)
Market Saturation
0.8
firms per 100K people
How Much Do Colleges, Universities, and Professional Schools Charge?
Colleges and universities charge tuition + fees, room and board. Wide variance by public/private and prestige.
| Service | Typical range |
|---|---|
Public university (in-state) | $10,000–15,000/year tuition |
Public university (out-of-state) | $28,000–45,000/year |
Private university tuition | $45,000–90,000/year |
Room and board (typical) | $14,000–22,000/year |
Community college (in-district) | $3,500–5,500/year |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete colleges, universities, and professional schools business plan
A 12-section data-backed business plan for a colleges, universities, and professional schools business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the colleges, universities, and professional schools industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Curriculum & supplies | $3 | $2.3M | Textbooks, learning software, teaching aids, technology for students. |
Wages & benefits | $55 | $35.7M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $9 | $5.7M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $2.3M | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $19 | $12.5M | Insurance, licensing, IT, admin, professional development. |
Net profit | $10 | $6.5M | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.23%
openings/year
Closure Rate
10.66%
closings/year
Net Job Growth
+2.98%
annual
Businesses Closed
110
in 2023
Firm Count Trend
Should You Start a Colleges, Universities, and Professional Schools Business?
Startup Cost
$50K – $250K
Break-Even
0 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a colleges, universities, and professional schools business do?
- Higher education institutions — 4-year public/private, community colleges, professional schools (law, med, business). Students, employers subsidizing education, government (Pell grants, student loans).
- How much do colleges, universities, and professional schools charge?
- Colleges and universities charge tuition + fees, room and board. Wide variance by public/private and prestige. See the pricing table above for typical rates by service type.
- How much does the average colleges, universities, and professional schools make per year?
- The average colleges, universities, and professional schools business generates $64.9M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $6.5M per year at a 10.0% profit margin.
- How many colleges, universities, and professional schools businesses are there in the US?
- There are 2,494 colleges, universities, and professional schools businesses operating in the United States, employing a total of 1,703,614 workers.
- How much does it cost to start a colleges, universities, and professional schools business?
- Startup costs for a colleges, universities, and professional schools business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the colleges, universities, and professional schools industry?
- The average employee in the colleges, universities, and professional schools industry earns $81K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The colleges, universities, and professional schools industry is actively growing — adding jobs at a net rate of 3.0% per year. New establishments are opening faster than existing ones close (4.2% entry vs 10.7% exit), indicating healthy demand.
Approximately 57% of colleges, universities, and professional schools businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 110 firms in this industry closed permanently.
Employment & Wages
The average employee in the colleges, universities, and professional schools industry earns $80,939/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 13,551 establishments employing 1,260,085 people, the typical business has about 93 employees. These tend to be larger operations requiring significant staffing investment.
Industry Trend (2000–2023)
The colleges, universities, and professional schools industry has declined 1% since 2000 (from 2,353 to 2,335 firms).
See full historical statistics →Compare Colleges, Universities, and Professional Schools revenue with other industries: