If you’re considering pursuing an MBA, you likely already have a degree in business and a few years of work experience under your belt. Whether you’re hoping to hit the job market, looking to land a promotion with your current company or planning to change careers altogether, earning a Master of Business Administration could be the key to achieving your goals.

But you might be wondering: how much does an MBA cost and is it really worth it?

To help you weigh your options, we’re taking a closer look at the cost and value of an MBA. Keep reading for expert insight from UMass Global faculty Dr. Paula Edwards, assistant professor of leadership, and Dr. Diane Quezada Singer, associate professor of marketing.

How much does an MBA cost?

Business administration is by far the most popular master’s degree in the United States. Each year, nearly 200,000 students will earn a master’s in business and most of those are MBAs.

MBA tuition rate ranges wildly from program to program, coming in anywhere from $20,000 to $200,000 in total. Dr. Edwards says that it’s important to keep the following in mind when choosing a program:

 

Just because an MBA may be expensive doesn’t necessarily guarantee high-quality education. It depends on so many factors, with the most important being: what you put into it as a student.

There are several factors that come into play when determining MBA cost levels, including:

• Residency status (in-state or out-of-state)
• Enrollment status (part-time or full-time)
• Modality (online, or in-person classes)
• School type (private or public)
• Previously earned transfer credits
• Campus fees and textbooks
• Employer tuition reimbursements

For example, UMass Global’s online MBA cost ranges from about $23,000 to $33,000, depending on how many previous credits you transfer in. It’s possible to get up to four classes waived if you’ve taken equivalent courses from a regionally accredited school. Compare this to Yale University’s one-year MBA, which has a cost of attendance that totals $108,780.

Measuring the true value of an MBA degree

When trying to decide if the cost of an MBA is worth it for you, it’s important to consider more than just the professional or career benefits. The return on investment of an advanced business degree can’t be accurately measured in financial terms alone.

“The MBA you earn today will be put to use in many ways,” Dr. Edwards shares. “Learning how to work with others and adapt to change can help you succeed in other areas of life, like family and friend groups, volunteer work or any other organization you belong to.”

Consider the following ways the value of an MBA can be assessed.

1. Higher earning potential

One of the most common reasons individuals choose to pursue an advanced degree is the prospect of earning a higher salary. After all, an increased earning potential in the long run can help justify the short-term cost of an MBA.

According to a recent Salary Survey from the National Association of Colleges and Employers (NACE), the average starting salary for MBA graduates was $82,372, compared to $54,392 for bachelor’s degree graduates. That 51 percent increase in salary potential could result in nearly $280,000 over the course of 10 years. So when considering the long-term investment you’re making in your future, the MBA cost works out to be much more manageable.

2. Improved employment prospects

An MBA is considered the gold standard in the business world. Having this credential on your resume will help you stand out to employers in most industries. In fact, a recent survey from the Graduate Management Admissions Council (GMAC) found that 91 percent of corporate recruiters were actively looking to hire MBA graduates.

To demonstrate this further, UMass Global used real-time job analysis software to examine nearly two million business job postings from the past year. The data revealed that MBA holders were eligible for about 38 percent more open positions than bachelor's degree holders.*

3. Advancement opportunities

Perhaps the open job postings don’t interest you because you’re already employed at a company you love. For you, the value of an MBA may come in the form of landing a promotion. Being able to demonstrate leadership traits like emotional intelligence, effective communication and ethical decision-making can show your employer that you’re management material.

These are precisely the types of skills you’ll develop in an MBA program. You’ll also gain a new appreciation for the greater business ecosystem. “I think of business as an ecosystem. All functions of the company are interrelated, so changes to one part will make an impact everywhere,” Dr. Singer explains.

4. Expanded professional network

Another advantage of partaking in an MBA program is the opportunity to build relationships with other business professionals. Not only will you be working closely with accomplished instructors who have years of field experience, but you’ll also be learning alongside other motivated graduate students who come from all different backgrounds.

“Learning how to reach out to others for advice and cultivate relationships with customers, team members and stakeholders is such a critical skill,” Dr. Singer stresses. A quality school offers opportunities to collaborate and build networking relationships, even in an online MBA program.

5. Boosted self-confidence

Earning a graduate degree is no easy feat. Not to mention the fact that you’ll be balancing your studies with existing professional and personal priorities. While it won’t be easy, it is surely possible as long as you find a program that’s built for working professionals like you.

The sense of accomplishment you’ll feel after earning your MBA is something that can never be taken away from you. Listing those three coveted letters behind your name is an instant indicator that you’ve acquired the skills necessary to be an effective business leader.

“There’s a competitive nature to the business space,” Dr. Singer explains. “MBA graduates must be prepared to go up against a lot of other talented candidates when vying for a job, which is why the coursework itself needs to be rigorous.”

Upon completing your MBA program, you’ll have confidence knowing your training has equipped you to take on even the most complex business challenges.

Reap the rewards of an MBA

The cost of an MBA may seem steep on the surface, but you can’t put a price tag on the long-term benefits it can have on your personal and professional life. As many of our graduates have proven, earning an MBA can be well worth the investment.

If you’re ready to start on your journey towards an advanced business degree, learn more about our online MBA program.

 

*Burning-Glass.com (analysis of 1,830,737 business job postings, Feb. 01, 2021 – Jan. 31, 2022).