MBA ROI in USA 2024: Top Universities, Courses, Calculator

What is the return on investment of an MBA in USA? ROI, or return on investment, is an estimate of the credibility of investing in a Master of Business Administration or an MBA degree, taking into account the profit that it generates and the opportunities that it offers to students after completion. In this article, we calculated the ROI (Return on investment) on MBA from USA for a student. Although many professionals pursue MBA after gaining some work experience, however, in this article, we have calculated the ROI for a student. We will be covering the ROI on MBA in USA for a professional in a separate article.

An MBA is a popular degree among international students. According to different reports, there has been an increase of 35% with more than 260,000 students pursuing their higher education in leading MBA universities throughout the world, among which 25% of the total student population consists of Indian students.

Earning an MBA could be extremely helpful for your career in a variety of ways, including developing in-demand skills, growing your network, and providing exposure to new opportunities. This article provides insight into the ROI in MBA in USA, how to calculate the ROI, university with the best ROI, and more.

Best ROI For MBA Universities in USA 2024

Several universities in USA provide a good return on investment for international students. Below is a list of some of the best ROI MBA colleges in USA.

Best ROI MBA Colleges USA

Best ROI MBA in USA 2024

Here are the top Business Schools along with their average starting salary, tuition fees, and the return on investment in 10 years.

• Stanford Graduate School of Business: The school offers MBA graduates an average starting salary of USD 182,500 and a tuition fee of USD 150,000. The return on investment over ten years is expected to be 325 percent.

• Harvard Business School: With an average starting salary of USD 125,000, a total program cost of USD 122,000, Harvard Business School provides a 10-year ROI of 320 percent.

• Imperial College Business School: The 10-year ROI is USD 870,200, over 14 times greater than the average domestic tuition rate.

• Ross School of Business: The 20-month course at Ross has a 10-year ROI of around USD 826,300, and students can cover their initial investment in 40 months following graduation.

How to Calculate ROI for MBA in USA 2024?

Here are the steps on how we have calculated the ROI for MBA colleges in USA. The ROI here is calculated according to the student’s perspective and not professionals. Going forward, we will also cover the ROI for MBA in USA for professionals.

Step 1: We have taken the current salary as Zero, as we have calculated the ROI for an MBA in USA for a student and not for a professional or someone having work experience.

Step 2: The student will pursue a full-time MBA programme in USA and will be doing a part-time job along with his/her studies.

Step 3: The student will be pursuing a two-year full-time MBA programme in the US.

Step 4: The part-time jobs earnings calculation is mentioned below.

In the USA, students are allowed to work 20 hours per week for their part-time job, hence we have taken USD 15 per hour as an average wage and multiplied it for one year..

The total annual salary from a part-time job in USA will be 15*20*52 = USD 15,600.

Step 5: We assumed that the student will be pursuing a summer internship during his/her course.

Step 6: We have mentioned the approximate earnings during the summer internship. The average mean salary for a week in USA is USD 1,925, hence for 10 months, the total adjusted average salary would be around USD 19,000.

Step 7: Below we have given the total expected cost of an MBA programme. As provided in the image, the total cost of top full-time MBA programmes in USA is around USD 168,000. This cost covers tuition fees, living expenses, healthcare costs, and other expenses.

Step 8: Assuming, the student will take a student loan from a bank or any financial institution that provides loans to students planning to study abroad.

Step 9: Enter your desired loan amount.

Step 10: We have adjusted the interest on an education loan at 9.2% annually.

Step 11: The loan term of 10 years has been taken.

Step 12: According to GMAC surveys, the average earned salary is USD 115,000 for a full-time MBA programme in 2021. We have taken this salary for calculating the ROI (Return on Investment).

Based on the data provided, your estimated total MBA investment is approximately USD 290,000. After earning your degree, your initial boost in salary will be around USD 65,000, and you will be able to recover the business school investment in approximately 4.5 years.

Assuming regular salary increases of 3 percent annually, 10 years after completing your MBA, your estimated ROI would be around 350%.

Your estimated cumulative salary earnings in 30 years after completing your MBA would be around USD 5,180,000. That’s an estimated USD 2,800,000 more than you would earn without an MBA degree.

Top Courses with Best ROI MBA in USA

Here are few of the MBA programmes that provide the best ROI in USA, these programmes are mentioned in the table below.

Best ROI MBA in USA

Factors Affecting MBA ROI in USA

There are several factors affecting the MBA ROI in USA for international students, which include:

• MBA Salary

• Tuition and fees

• Living expenses

• MBA course or specialisation

• Alumni network and industry connections