How Are High School Graduation Rates Calculated

Calculate the adjusted cohort graduation rate (ACGR) based on federal methodology. Enter your school’s data to see how graduation rates are determined.

How Are High School Graduation Rates Calculated?

The high school graduation rate is one of the most important metrics in education, providing insight into school performance, student success, and educational equity. The primary method used across the United States is the Adjusted Cohort Graduation Rate (ACGR), which was standardized by the U.S. Department of Education in 2008 to ensure consistency in reporting.

The Adjusted Cohort Graduation Rate (ACGR) Formula

The ACGR is calculated using the following formula:

Graduation Rate = (Number of Cohort Members Who Graduated ÷ Adjusted Cohort Size) × 100

Where:

• Cohort Members Who Graduated includes students who earned a standard diploma, as well as those who completed through alternative pathways (e.g., GED, special education certificates).
• Adjusted Cohort Size is the original 9th-grade class size, adjusted for:
• Students who transferred in (added to the cohort)
• Students who transferred out (removed from the cohort)
• Students who emigrated (removed with documentation)
• Students who passed away (removed with documentation)

Step-by-Step Calculation Process

1. Define the Cohort

   The cohort begins with all first-time 9th-grade students in a given school year. For example, if calculating the graduation rate for the class of 2023, the cohort would consist of all students who entered 9th grade in the 2019-2020 school year.

2. Adjust the Cohort

   The initial cohort is adjusted by:

   • Adding students who transfer into the school/district after 9th grade.
   • Removing students who transfer out, emigrate, or pass away (with proper documentation).

   This ensures the denominator reflects only students who were reasonably expected to graduate from that school.

3. Count Graduates

   The numerator includes:

   • Students who earned a standard high school diploma.
   • Students who completed via alternative pathways (e.g., GED, adult education diplomas, or state-defined equivalents).

   Students who drop out, remain enrolled beyond 4 years, or earn certificates of attendance/completion (without a diploma) are not counted as graduates.

4. Calculate the Rate

   Divide the number of graduates by the adjusted cohort size and multiply by 100 to get the percentage.

Example Calculation

Let’s walk through a hypothetical example for Lincoln High School’s Class of 2023:

• Initial 9th-grade cohort (2019-2020): 500 students
• Students who transferred in: +20
• Students who transferred out: -30
• Students who emigrated: -5
• Adjusted cohort size: 500 + 20 – 30 – 5 = 485
• Standard diplomas awarded: 420
• Alternative completions (GED): 15
• Total completers: 420 + 15 = 435
• Graduation rate: (435 ÷ 485) × 100 = 89.7%

Metric	Value
Initial Cohort (9th Grade)	500
Transfers In	+20
Transfers Out	-30
Emigrated/Deceased	-5
Adjusted Cohort Size	485
Standard Diplomas	420
Alternative Completers	15
Total Completers	435
Graduation Rate	89.7%

Key Considerations in Graduation Rate Calculations

1. Four-Year vs. Extended-Year Rates

The ACGR measures the percentage of students who graduate within four years. However, many states also report:

• Five-year graduation rates: Includes students who take an extra year to graduate.
• Six-year graduation rates: Common for alternative schools or special education populations.

For example, the national four-year ACGR for 2020-2021 was 86.5%, while the five-year rate was 88.6% (Source: NCES).

2. Subgroup Reporting

Schools must disaggregate graduation rates by student subgroups to identify equity gaps. Common subgroups include:

• Race/ethnicity (e.g., White, Black, Hispanic, Asian)
• Economic status (e.g., low-income vs. non-low-income)
• Special education status
• English learner status
• Gender

2020-2021 National Four-Year Graduation Rates by Subgroup (Source: NCES)

Subgroup	Graduation Rate (%)
All Students	86.5
White	90.1
Black	81.4
Hispanic	82.6
Asian/Pacific Islander	93.6
American Indian/Alaska Native	74.0
Economically Disadvantaged	82.0
Students with Disabilities	71.5
English Learners	71.0

3. Alternative Pathways and Non-Diploma Credentials

Not all students earn a standard diploma. The ACGR includes:

• Standard diplomas: The most common credential.
• Alternative diplomas: Awarded to students who meet modified requirements (e.g., special education).
• GED or equivalent: Counted if earned during the cohort period.

However, certificates of completion (awarded to students who complete high school but do not meet diploma requirements) are not counted as graduations in the ACGR.

4. State Variations

While the ACGR is federally standardized, states may have additional rules:

• Texas: Uses a “Longitudinal Graduation Rate” that includes summer graduates.
• California: Reports both four-year and five-year rates prominently.
• New York: Includes August and January graduates in the four-year rate.

Common Misconceptions About Graduation Rates

1. “The graduation rate includes all students who eventually graduate.”

   Reality: The ACGR only counts students who graduate within four years. Extended-year rates are reported separately.

2. “Dropouts are the only students not counted as graduates.”

   Reality: Students who transfer out, emigrate, or pass away are also excluded from the adjusted cohort. Only students who could reasonably have graduated from the school are included.

3. “A high graduation rate means all students are college-ready.”

   Reality: Graduation rates measure completion, not preparedness. Many graduates require remedial courses in college (e.g., 40% of college freshmen take at least one remedial course).

4. “Alternative schools inflate graduation rates.”

   Reality: Alternative schools often serve at-risk students and may have lower graduation rates than traditional schools. Their rates are reported separately in many states.

How Graduation Rates Impact Schools and Students

For Schools:

• Accountability: Graduation rates are a key metric in state and federal accountability systems (e.g., ESSA).
• Funding: Some states tie funding or grants to improvement in graduation rates.
• Reputation: High graduation rates can attract families and improve school rankings.

For Students:

• College Admissions: While colleges look at individual transcripts, high school graduation rates can influence perceptions of school rigor.
• Employment: A diploma (even from a school with a lower graduation rate) is critical for most entry-level jobs.
• Earnings: High school graduates earn $8,000 more annually than non-graduates on average.

Criticisms and Limitations of the ACGR

While the ACGR provides a standardized metric, critics argue:

• It excludes extended-year graduates: Students who take 5-6 years (often due to challenges like poverty or disabilities) are not counted in the headline rate.
• Transfer students can be mishandled: Some schools may incorrectly remove students who transfer out to avoid lowering their rates.
• Alternative credentials are lumped together: A GED and a standard diploma are treated equally, though their labor market value differs.
• It doesn’t measure quality: A diploma from a school with low standards is counted the same as one from a rigorous program.

Improving Graduation Rates: Evidence-Based Strategies

Schools and districts can boost graduation rates through:

1. Early Warning Systems

   Tracking indicators like attendance, behavior, and course grades in 9th grade to identify at-risk students. Research shows 9th-grade success is the strongest predictor of graduation.

2. Credit Recovery Programs

   Allowing students to retake failed courses online or through summer school. Studies find these programs can increase graduation rates by 5-10%.

3. Mentoring and Advising

   Programs like Check & Connect pair students with mentors to monitor progress and provide support.

4. Alternative Pathways

   Offering competency-based education, evening schools, or hybrid programs for students who struggle in traditional settings.

5. Family and Community Engagement

   Programs that involve parents in academic planning (e.g., PTO Today) correlate with higher graduation rates.

Where to Find Official Graduation Rate Data

For the most accurate and up-to-date graduation rate data, refer to these authoritative sources:

• National Center for Education Statistics (NCES):

  https://nces.ed.gov/ccd/tables/ACGR_RE_and_characteristics_2020-21.asp

  Provides national, state, and district-level graduation rates by subgroup.

• U.S. Department of Education (ED Data Express):

  https://eddataexpress.ed.gov/

  Interactive tool for comparing graduation rates across states and districts.

• State Education Agency Websites:

  Most states publish detailed graduation rate reports. For example:

  • California: https://www.cde.ca.gov/ta/ac/gy/
  • Texas: https://tea.texas.gov/academics/graduation
  • New York: http://www.p12.nysed.gov/irs/graduation/

Frequently Asked Questions

Q: Why do some schools have graduation rates over 100%?

A: This can happen if more students graduate than were in the adjusted cohort, typically due to:

• Students who repeated a grade and graduated with a younger cohort.
• Transfers in who graduate early.
• Data errors in cohort adjustments.

Q: How are homeschooled students counted in graduation rates?

A: Homeschooled students are not included in public school graduation rates. If they re-enroll in public school, they are added to the cohort at the time of re-entry.

Q: Do students who earn a GED count as graduates?

A: Yes, if the GED is earned during the cohort period (typically by age 19-20). However, GED recipients are often reported separately from standard diploma earners.

Q: How does the COVID-19 pandemic affect graduation rates?

A: The pandemic led to:

• Temporary dips in some states due to disruptions (e.g., California’s rate dropped from 84.5% in 2019 to 83.6% in 2021).
• Increased extended-year graduations as students took longer to complete credits.
• Policy changes like credit flexibility in some states (e.g., pass/fail grading).

The full impact is still being studied, but early data suggests modest declines in many areas.

Conclusion

The Adjusted Cohort Graduation Rate (ACGR) is a critical but nuanced metric. While it provides a standardized way to compare schools and track progress, it’s important to:

• Look beyond the headline number to subgroup data.
• Consider extended-year rates for a fuller picture.
• Examine qualitative factors like college/career readiness.

For educators and policymakers, improving graduation rates requires addressing the root causes of dropout risks—academic struggles, disengagement, and life challenges—through targeted interventions and support systems.

By understanding how graduation rates are calculated, parents, students, and community members can better advocate for equitable policies and resources that help all students cross the finish line.