A primary goal of getting an MBA (Master of Business Administration) is career advancement and new earning opportunities. But is the investment of time and money worth it? Whether you work in the corporate space or as a consultant, there are several things to consider beyond a bigger paycheck when it comes to getting an MBA.
Return on Investment (ROI)
When evaluating your options for an advanced degree, it’s important to understand the return on investment. Using Bloomberg’s business school ROI calculator, an MBA student attending Vanderbilt University would realize a net 10-year ROI of $564,720, or roughly 9.7%. This is after paying over $188,000 in tuition and fees with the assumption that you borrowed student loans. It also takes the opportunity cost (foregone income) into account.
Full Time MBA Program
A full-time MBA program takes an average of 2 years to complete. And according to MBA Central, nearly 90% of full time MBA students have over four years of work experience under their belt. The average total cost for an MBA in the U.S. is $60,410. This price tag can vary considerably depending on school and location. And there are several options to pay for it.
Part Time MBA Programs
Part-time and online MBA programs have gained popularity over the years. A big reason for this is access and convenience. For many people, leaving the workforce for 2 years to pursue a graduate degree is not economically feasible, even with student loans. Some employers are willing to offer flexible work schedules so you can pursue your MBA part time. Be sure to ask about tuition assistance, as well.
Other MBA Programs You Could Commit To
Beyond full-time or part-time enrollment, there are other MBA options you may want to consider that could make it easier to commit to a program.
Online or Hybrid MBA
- Best for: Working professionals who don’t want to/can’t quit their jobs
- Pros: Flexible and often more affordable
- Cons: May take longer to complete, networking is not as feasible
Executive MBA (EMBA)
- Best for: Mid-career professionals seeking executive positions
- Pros: Cohort-based learning, strong networking opportunities
- Cons: Faster paced, often expensive
Graduate Management Admission Test (GMAT)
Regardless of whether your MBA program is full time or part time, many schools require you to complete the GMAT or GRE. This is particularly true with AACSB (Association to Advance Collegiate Schools of Business) accredited schools. However, there has been a shift in recent years with a growing number of MBA programs—particularly online programs—that have waived GMAT or GRE testing requirements. Waivers are typically offered in consideration of your work experience or prior coursework.
Graduate Management Admissions Council (GMAC)
Representing more than 225 business schools, GMAC is the association that administers the GMAT exam. They also offer a tool called Advancery that helps you compare programs while evaluating your skills and career goals. In addition to a skills assessment, you can receive coaching and get insights from other students based on their experiences in business school.
Job Market for Business School Graduates
According to the Association to Advance Collegiate Schools of Business (AACSB), the job market for business school graduates is promising. In fact, the employment rate for MBA holders was 85% within 3 months of graduation following the 2024-25 academic year.
The demand for business school graduates is strong in sectors like finance, healthcare, technology, and marketing. Of course, the job market continually evolves. So it’s important to consider the expected salaries in each field as you think about pursuing an MBA.
Higher Salaries - Do MBA Grads Actually Earn More?
While salaries vary based on industry and region, the potential for higher earnings is a key reason people obtain an MBA. The average salary in 2024 for MBA graduates was $104,431. The highest salaries were earned by graduates of the top MBA schools in the country; an average of $207,434.
But in addition to earnings potential, there are advantages like leadership and networking opportunities that come with earning an MBA. This can be vary significantly based on your your school.
MBA Leadership Roles and Career Goals
When you think of the types of roles that are associated with MBA degrees, many of them are likely to fall in the executive or senior management ranks. The following job titles come to mind:
- CEO
- COO
- General Manager
- Senior Vice President
- Vice President
- Operations Manager
- Marketing Director
- Programs Manager
And the list goes on. There are sure to be variations in these types of roles and they will differ based on industry.
Professional Networks
A lot of people have viewed the MBA as one of the best door openers for engaging in a professional network. This is because many business schools, including the top schools across the country, may have very active alumni associations that host events. And it can be a great way to meet with individuals who can offer business or job opportunities. Often, these professional networks can introduce you to new people through shared connections (for example, your classmate’s uncle).
But professional networking is not limited to your school’s alumni. And the sheer fact that you have an MBA may not necessarily lead to access or advantages.
Today, platforms like LinkedIn, Meetup, AngelList, Slack (Community Chapters), and Reddit offer ways to search for and find people with similar, professional interests and backgrounds.
There are even some national MBA groups that you can find online. But some may charge a fee for joining or attending events. There are several ways to make meaningful connections…with or without an MBA degree.
Graduate Degree vs MBA Degree
It’s important to consider that an MBA is a specific type of graduate degree which may not be best suited for your career goals. For a long time, the MBA has been considered a broad degree that touches on multiple facets of business management and leadership. But if your primary interest is financial analysis or a related field, it may make more sense to get a Master’s in Finance instead. Similarly, if you really want to go narrow and deep in the field of marketing, then consider a Master of Science in Marketing. While some schools allow you to add a specialization to your MBA (i.e. Healthcare Management, Organizational Effectiveness, etc.), you may want to compare other graduate degree options, including costs.
So…Is Getting An MBA Worth It?
The answer, of course, is it depends on several factors. Here is a list of pros and cons that may be helpful.
| Pros | Cons |
|---|---|
| Can lead to higher earnings, career advancement, leadership roles | Can be expensive and you may need to borrow money |
| Strong ROI, especially if you are in a competitive industry | Short term sacrifice of income; especially if you enroll full-time for 2 years |
| Can help you build a strong professional network | Networking opportunities and career support may be less favorable at some schools vs. others |
| Personal and professional development | Significant time commitment (though it’s hard to argue against growth) |
Getting an MBA means more than a new entry on your resume or CV. It can lead to professional transformation, new relationships, and an added edge in your career. With the right program, informed by your research and goals, an MBA could very well be a valuable investment.
