Why do an MBA?
By J.D. Richards, MBA, B. Eng.

 

 



Return on Investment (ROI) - Tuition Fees vs Graduating Salaries

Please note that salary ranges are highly depended on the job position, industry and location. Therefore the figures below are provided as “ball park” estimates. For specific MBA graduating salaries, see the Salary Wizard on Monster.com.

  • MBA ROI: The average cost of an MBA in North America is about $50K (US dollars) and graduating salaries can range from $75K – $150K per year, dependent upon on the school, previous experience and networking. Therefore, the regular MBA program will yield an ROI of about 50% – 150%. For student loans, the graduating salary range will allow for monthly repayments of about $1,500 - $3,000 per month, thus resulting in a break-even time of about 2 to 4 years, assuming the loan included money for living expenses.

    For a more information on MBA tuition costs, see:
    For a more information on MBA graduating salaries, see:
  • EMBA ROI: The average cost of an EMBA is about $80K (US dollars) and graduating salaries can be upwards of $150K per year, assuming a sufficiently high management position (i.e. executive) is obtained. Therefore, the EMBA program will yield an ROI of about 80% and up. For student loans, the graduating salary range will allow for monthly repayments of about $3,000+ per month, thus resulting in a break-even of about 4 years or less, assuming the loan included money for living expenses.

    For a more information on EMBA tuition costs, see: For a more information on EMBA graduating salaries, see:
  • Online MBA ROI: Some Online MBA’s are being advertised for as little as $6,000. Assuming employers consider the Online MBA to be equivalent to a management certificate (keep in mind, this is the worst case scenario), then graduating salaries would probably be around $50-80K, depending on previous experience and how well the candidate is able to market his/her MBA degree. Therefore, for people who cannot afford to do an in-class MBA degree, the Online option yields some terrific ROI possibilities (8x to 16x the investment).
     
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