There is a legitimate need for data on the performance of higher education institutions. It is important for the institutions themselves, as well as their stakeholders, including society. The use of indicators that measure the effectiveness or quality of education is increasing as there is much demand for more evidence-based evaluation and decision-making. This report explores what kind of education indicators are used by external quality assurance agencies, funding mechanisms and international university rankings and whether they are fit for purpose. This report aims to provide informed input to the debate about the use and validity of indicators currently applied to measure the quality, performance or effectiveness of higher education. It does so by examining three external tools that use indicators and have an impact on higher education institutions: external quality assurance, funding formulae, and rankings. This report covers indicators related to education in the broad sense, encompassing learning and teaching, but also the overall learning experience and environment. This report will (1) provide an overview of the education-related indicators used by the above-mentioned tools; (2) present common and diverging focal points with regard to types of indicators used; and (3) discuss challenges associated with the various ways in which indicators are currently used.