Considering applying to MBA programs, but daunted by the cost? That’s not surprising: tuition for a two-year MBA program averages $60,000 and at some schools, like MIT's Sloan School of Management, can top $120,000 or more. Even so, for many business students, earning an MBA is worth the cost.
That’s because, according to the Bureau of Labor Statistics, the salaries of MBA graduates are double those of non-MBA graduates in comparable positions and industries. For example, as of May 2019, operations managers earned a median salary of $100,000; for chief executives, salaries were over $184,000.
For many MBA graduates, the future looks bright. But let's consider the realities.
When you consider the cost of tuition plus the opportunity cost in lost earnings, MBAs might seem even more costly. Additional costs, such as housing, books, computers, and travel, aren't included. Investopedia suggests that business students can accumulate between $100,000 to $200,000 in debt and expenses in just over two years.
Read More: What is the ROI of an MBA Degree?
Note, however, that these numbers are for the highest ranked business schools, like Wharton and Stanford. According to the Financial Times , MBA students at Stanford will pay, on average, $218,000 for two years; Wharton Business School estimates their tuition costs for a two-year MBA approach $215,000.
For many business students, there are ways to make an MBA degree less costly. Here are some ideas:
Read More: Best Online MBA Programs
While the MBA tuition may be the biggest detractor, many business students consider it a rewarding investment that leads to additional opportunities, professional satisfaction, and higher salaries—well worth the opportunity cost.
Take a GMAT practice test with us under the same conditions as the real thing. You'll get a personalized score report highlighting your strengths and areas of improvement.
Explore our featured business schools to find those that are looking for students like you.
On a mission to increase your salary? Our Top 50 Online MBA ranking is based on academics, career outcomes, tech platforms, and more.
Find out which schools have the best track records for getting students jobs—and the highest starting salaries.
Ready to build your own business from the ground up? Check out these 50 graduate programs.