Calculate the Return on Investment for an MBA

A political campaigner in Washington, D.C., Kate Doehring, 31, decided to pack her bags and move to the Midwest to earn an MBA in a place with a cheaper cost of living. “I was looking at Georgetown and George Washington here,” says Doehring, who is about to finish her first year of business school at the University of Wisconsin—Madison. “To stay in D.C., just sheer cost would have been at least double or triple than Madison.” Like many prospective MBA students, Doehring looked at her MBA as an investment and weighed the cost of living, lost wages and potential debt along with a projected post-degree salary of $100,000. Average salary after graduation compared with debt, referred to as salary-to-debt ratio, is one tool for calculating the return on investment for prospective MBA students. “I used just over $100,000 annually, plus or minus $10,000,” says Doehring, who is on target to finish the program with less than $15,000 in debt. “I used $100,000 as a benchmark because those numbers were communicated when I did my campus visit.” According to data submitted to U.S. News by ranked business schools, UW—Madison had the highest annual salary-to-debt ratio for full-time MBA graduates who found jobs paying an average of more than $100,000 in salary and bonus within three months of earning their degree. Students at Wisconsin School of Business can expect a 7.4-to-1 salary and bonus-to-debt ratio. That translates into an average salary and bonus of $114,815 and $15,481, on average, in debt. Of the other ranked business schools with grads earning more than $100,000 in salary and bonuses, these schools had the highest salary and bonus-to-debt ratio for the Class of 2015: the Marriott School of Management at Brigham Young University at...

Is Business School Worth the Money?

Over time, MBAs earn $1 million more than non-MBAs, says a new study. If you’re on the fence about whether to spend the time and money to pursue a graduate business degree, a new report from the Graduate Management Admission Council could help you decide—including what kind of program might give you the biggest returns. Based on a survey of 14,279 alumni of 275 MBA programs worldwide, the study says these MBAs reported base salaries that totaled $1 million more over the two decades following graduation than if they had not gone to B-school. GMAC’s calculations show that, even taking into account the opportunity cost of two years of lost pay, people who graduate from two-year, full-time MBA programs recoup their investment, on average, in three-and-a-half years. Can’t take two years away from your job (and spend an average of $105,000 in tuition, in addition to lost pay)? That’s not necessarily a problem since, the report says,“graduates with lower investment costs tend to recoup their expenses more quickly and show a larger ROI.” For instance, MBAs who got their degree part-time, at an average tuition cost of $25,000, took just two-and-a-half years to earn back their investment, as did executive MBA grads who paid roughly the same tuition. After five years, the two groups reported total ROIs (including pay increases minus the cost of their degrees) of 221% and 491%, respectively. By contrast, because their MBAs cost so much more, the full-time two-year students’ five-year ROI was 132%—still not too shabby—and climbed to 445% only after an average of 10 years. In all, 89% of the alums said their MBAs have proved “professionally rewarding,” and 9 out of 10 said they’d go to B-school if they had it to...

The best business school for your money may surprise you...

In December Business Insider released its sixth annual list of the 50 best business schools in the world — the schools whose MBA programs have the best reputations, highest starting salaries, lowest tuitions, and best job-placement rates. Brigham Young University’s Marriott School of Management came in at No. 44 on our overall list. It’s the least expensive US program and least expensive two-year program, and it took first place on our list of the best business schools for your money, making it one of the most underrated MBA programs out there. “When you consider the low cost of the degree, scholarships and high starting salaries, the quality of the education — it’s a very economical MBA program choice,” BYU MBA program director John Bingham told Business Insider. We decided to take a closer look. BYU Marriott School of ManagementFacebook/BYU Marriott School of Management The cost of the degree The tuition and fees for the entire program totals just $47,900. That’s less than half the price of top MBA programs at most private schools in the US and three times less than the $144,340 price tag of The Wharton School at the University of Pennsylvania, the top school on our ranking. Brigham Young, which is subsidized by the Church of Jesus Christ of Latter-Day Saints, is even cheaper for members of the church: LDS students pay less than $25,000 for an MBA. On top of that, more than 80% of students receive additional scholarship funding of at least a few thousand dollars, so many graduate with little debt. High placement and competitive salaries Three months after graduation, 92% of students have accepted job offers, and another 5% start their own viable companies. BYU puts a large emphasis on entrepreneurship, and...

13 MBAs that are really worth your money

Sure, you want to get an M.B.A. to make a higher salary and you may even be willing to plunk down the small fortune that the top programs are charging these days. But, still, you’ll want to make sure such an investment will pay off. So it’s worth checking out this list of M.B.A.s in the U.S. ranked by return-on-investment, calculated using total tuition cost and average graduate salary. The big names are all over this list, which probably comes as much-needed solace for grads who have dropped over $100,000 for their degrees. But there are also a few schools that may not have caught your attention before and come in under $55,000. We’ve included the school’s U.S. News & World Report ranking as a point of comparison. Three of the top 13 schools significantly outperform their overall U.S. News ranking when it comes to ROI. Many of the bigger names have a slightly lower ranking when it comes to ROI than overall, but when it comes to the top of the top, it looks like grads are getting exactly what they’re paying for… Read full story:...

MBA by numbers ? Return on investment

If money is your motivation for studying for an MBA, then the earlier you enrol on your degree programme the better. Data from the Financial Times 2015 Global MBA rankings show that the pay increase of younger graduates in the three years after graduation outperforms that of their older counterparts in both percentage terms and absolute terms. The rankings are based on a survey of the MBA class of 2011 and analyses their career progress and salaries. Pay increase of MBA graduates three years after graduation compared Participants aged 24 or under when they started their degree saw their salary increase by nearly $69,000 in the three years after graduation, up 145 per cent on their pre-MBA salary. Their older counterparts, those aged 31 or above, had a pay increase of $56,000, or a 70 per cent increase. Those in the middle age group, who were 27 to 28 years old when they began their full-time MBA, had a pay increase of $67,000, just about doubling their pre-MBA salary. Broadly speaking, the same pattern occurs in all industry sectors and countries, regardless of whether graduates work overseas or move to a different industry. On average three out of four respondents to the FT survey were aged between 25 and 30 when they started their MBA, while 21 per cent were 31 or above and the remaining 4 per cent were 24 or younger. The older the participants were, the more likely they were to enrol in one-year European MBA programmes as opposed to two-year US-type MBA programmes. On average, 75 per cent of those aged 26 or under attended two-year programmes in comparison to only 43 per cent of those aged 31 or above. An MBA is a substantial...

The ROI Of B-School – Reach, Opportunities And Income...

There is no shortage of predictions about the grim future of business education. Disruptive technology, escalating costs, staffing issues, and market competition are high on the list of challenges faced by business schools, big and small. But ask alumni about the value of their business degree and you get an overwhelming endorsement. Indeed a new survey shows that business school alumni earn more, rise fast, and expand their opportunities. The Graduate Management Admission Council (GMAC) surveyed more than 12,000 graduate business school alumni from more than 230 graduate business programs at 71 universities in 16 locations across the globe. The results of their 2015 Alumni Perspectives Survey Report offer a global snapshot of employment and career progression for alumni representing the classes of 1959 through 2014. Ninety percent of business school alumni say graduate management education boosted their earning power, with many climbing to the executive ranks, and reporting high levels of job satisfaction. Graduates gave overall high marks to the value of their education in driving their professional success, as well as positive reviews to their business school’s alumni association, with a majority saying their engagement with these associations has contributed to their success. “Graduate management degree-holders consistently tell GMAC their education is a solid investment and a spur to personal, professional and financial achievement, even in up-and-down economies,” said Sangeet Chowfla, president and CEO of GMAC. “A graduate management education isn’t just a degree, it’s a career catalyst.” With many business schools reporting the strongest MBA job market for years, and an employer survey that shows nine out of ten employers intending to hire b-school graduates in 2015, this comes as more welcome news for the industry. The GMAC survey shows that an MBA or other graduate...