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MBA RETURN ON INVESTMENT
The return on investment (ROI) for an MBA is something many students are understandably concerned about. Recent surveys and research carried out by the Graduate Management Admissions Council (GMAC) show that an MBA yields an excellent return on investment for virtually all MBA students graduating from accredited business schools, not just those coming from top-ranked institutions. In fact, the 10-year average ROI for MBA grads from top-ranked business schools was less than for those graduating from business schools outside the "top 10." The value of an MBA applies across the range of business schools and employment fields, with 90% of all MBA grads seeing their average base salary increase by over 50%. This average holds for those graduating from full-time, part-time, executive and other types of MBA degree as well. While the payback period will vary, in general no matter which MBA program in the US you choose, you can be sure that the long-term benefits of taking an MBA outweigh the immediate cost.

The Value of an MBA
Mean ROI Increase in Salary Total Cost

Percent Salary Increase

Post MBA Base Salary
Top Ten 12% $34,485 $198,321

56%

$96,420
Non Top Ten 18% $28,024 $123,712

54%

$79,703
Top Fifty 17% $30,718 $141,717

58%

$83,736
Non Top Fifty 20% $22,768 $95,777

45%

$73,448
(source: BizEd, January/February, 2007)


Years to Payback
The table below shows the number of years to payback of some of the top-ranked business schools in the US.

Forbes Rank

School

Years to Payback

Pre-MBA Salary (rounded)

Post-MBA Salary (rounded)

17

Brigham Young (Marriott)

2.2

$33,000

$86,000

12

Iowa (Tippie)

2.2

$33,000

$93,000

11

Texas-Austin (McCombs)

2.6

$44,000

$108,000

14

UNC (Kenan-Flagler)

2.8

$47,000

$125,000

5

Yale

2.8

$46,000

$134,000

16

Carnegie Mellon (Tepper)

2.9

$45,000

$118,000

9

Cornell (Johnson)

2.9

$44,000

$135,000

1

Dartmouth (Tuck)

2.9

$54,000

$165,000

15

UC Berkeley (Haas)

2.9

$51,000

$128,000

8

Virginia (Darden)

2.9

$52,000

$139,000

4

Columbia

3.1

$57,000

$160,000

19

UCLA (Anderson)

3.1

$56,000

$137,000

20

Duke (Fuqua)

3.1

$52,000

$121,000

10

Northwestern (Kellogg)

3.2

$53,000

$143,000

13

NYU (Stern)

3.2

$55,000

$150,000

2

Pennsylvania (Wharton)

3.2

$65,000

$177,000

6

Stanford

3.2

$58,000

$160,000

3

Chicago

3.3

$60,000

$164,000

18

MIT (Sloan)

3.3

$55,000

$145,000

7

Harvard

3.4

$62,000

$180,000

(source: Forbes Best Business Schools, 2009)



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