How much money does Harvard earn annually?
I've been reading a lot about Ivy League schools and how they're funded, and now I'm really curious about how much money Harvard actually makes every year. I know they have that massive endowment, but I'm not sure if that's the same as their yearly income or something else.
If anyone has info on Harvard’s annual revenue or can explain how much money flows through the university in a typical year, that would really help. I'm especially interested because I'm considering applying and want to understand how all these resources might influence student opportunities. Any insight on where this money goes (student aid, research, etc.) would also be super helpful!
Is the endowment what gets spent every year, or is it just a savings account that grows? And how do things like donations, tuition, and research grants fit in?
If anyone has info on Harvard’s annual revenue or can explain how much money flows through the university in a typical year, that would really help. I'm especially interested because I'm considering applying and want to understand how all these resources might influence student opportunities. Any insight on where this money goes (student aid, research, etc.) would also be super helpful!
Is the endowment what gets spent every year, or is it just a savings account that grows? And how do things like donations, tuition, and research grants fit in?
1 month ago
•
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Luis Nario-Malberg
• 1 month ago
Advisor
It’s great that you’re thinking critically about how Harvard’s vast resources actually function, since it helps to understand what it could mean for your potential experience there.
Harvard’s annual operating revenue (which is essentially the money it earns and spends in a given year) was about $5.8 billion in the most recent fiscal year. This figure combines money from a few main sources: distributions from the endowment, tuition and fees, federal/state grants (especially for research), donations, and income from things like executive education programs, publications, and rentals.
The endowment is often misunderstood—it’s not a big bank account that Harvard simply spends all at once. Instead, think of it as a massive investment portfolio valued at over $50 billion. Each year, Harvard spends only a small percentage of that fund (usually 4-5%) on operating costs and programs. The idea is to let the endowment grow over time, so future generations of students benefit too. For example, if the endowment distributes 5% in a year, that's about $2.5 billion contributed toward Harvard’s operations, with the principal mostly staying put and (hopefully) growing through investment returns.
Tuition and fees contribute a significant amount, but at Harvard, those only make up about 20% of total revenue. This is why Harvard can offer such generous financial aid—much of it is funded by the endowment and annual gifts. Research grants (mainly from the government) also contribute billions, particularly for scientific and medical research.
As for where the money goes: a large chunk funds academic and research programs, pays for faculty and staff salaries, supports financial aid (over half of Harvard undergrads receive need-based aid), sustains libraries and facilities, and invests in campus initiatives from the arts to athletics.
Here’s an example of impact: Because of its wealth and how the endowment is managed, Harvard can offer need-blind admissions and commit to meeting 100% of demonstrated financial need. Students with family incomes below a certain threshold often pay nothing or very little to attend. Large, consistent investments in research can also mean more lab opportunities for undergraduates and expanded academic programming.
If you’re trying to gauge what these resources mean for you, consider the opportunities for research funding, financial aid, and access to world-class facilities—all of which are supported every year by this complex revenue structure. If you’re interested in reading further, Harvard’s annual financial report is publicly available and breaks all these numbers down.
To sum up: The endowment is a giant, invested fund that supports Harvard year-to-year, but it’s not the university’s sole income stream. Annual revenue is a combination of endowment distributions, tuition, donations, research grants, and more—each playing a critical role in powering opportunities on campus.
Harvard’s annual operating revenue (which is essentially the money it earns and spends in a given year) was about $5.8 billion in the most recent fiscal year. This figure combines money from a few main sources: distributions from the endowment, tuition and fees, federal/state grants (especially for research), donations, and income from things like executive education programs, publications, and rentals.
The endowment is often misunderstood—it’s not a big bank account that Harvard simply spends all at once. Instead, think of it as a massive investment portfolio valued at over $50 billion. Each year, Harvard spends only a small percentage of that fund (usually 4-5%) on operating costs and programs. The idea is to let the endowment grow over time, so future generations of students benefit too. For example, if the endowment distributes 5% in a year, that's about $2.5 billion contributed toward Harvard’s operations, with the principal mostly staying put and (hopefully) growing through investment returns.
Tuition and fees contribute a significant amount, but at Harvard, those only make up about 20% of total revenue. This is why Harvard can offer such generous financial aid—much of it is funded by the endowment and annual gifts. Research grants (mainly from the government) also contribute billions, particularly for scientific and medical research.
As for where the money goes: a large chunk funds academic and research programs, pays for faculty and staff salaries, supports financial aid (over half of Harvard undergrads receive need-based aid), sustains libraries and facilities, and invests in campus initiatives from the arts to athletics.
Here’s an example of impact: Because of its wealth and how the endowment is managed, Harvard can offer need-blind admissions and commit to meeting 100% of demonstrated financial need. Students with family incomes below a certain threshold often pay nothing or very little to attend. Large, consistent investments in research can also mean more lab opportunities for undergraduates and expanded academic programming.
If you’re trying to gauge what these resources mean for you, consider the opportunities for research funding, financial aid, and access to world-class facilities—all of which are supported every year by this complex revenue structure. If you’re interested in reading further, Harvard’s annual financial report is publicly available and breaks all these numbers down.
To sum up: The endowment is a giant, invested fund that supports Harvard year-to-year, but it’s not the university’s sole income stream. Annual revenue is a combination of endowment distributions, tuition, donations, research grants, and more—each playing a critical role in powering opportunities on campus.
Luis Nario-Malberg
Mooresville, North Carolina
Harvard College, Class of 2018, A.B. in Philosophy
Experience
5 years