MBA can be an expensive degree program, especially if you opt to pursue it abroad, making your MBA cost an essential element to consider while choosing the degree and business school. The exact price for an MBA degree can significantly vary due to many factors such as the business school, location, length of the program, and more. Let’s discuss these factors that affect MBA cost in more detail.
Tuition costs are the significant expense in the cost factor. Tuition fees take up the majority of the total cost of the program. But while calculating the total annual cost of a program, you should keep in mind other expense and the cost of materials etc. For example, Columbia Business School, an Ivy League institution located in New York City, has an annual tuition rate of $74,400. However, because of the location, room and board are an estimated $21,375 per year. With added fees, the total annual cost rises to $110,978.
Another major factor affecting the cost of the program is the location of the school. For example, if you plan to join a school located in New York City, it will cost you much more than a school located in Ohio. Another factor in overall costs is whether the school is publicly or privately funded—a private institution that generally costs much higher than a public school. However, one must remember that the return on investment in public schools might be less than in high-ranked private schools, such as Columbia or the Stanford Graduate School of Business.
Return on Investment
The cost of an MBA degree may be a bit high, but from a career prospect, it provides various opportunities. The specialisation of the Master’s degree, work experience, employment location, and attended school can significantly boost your job and salary package.
For example, according to The Financial Times, Stanford Graduate School of Business MBA graduates are the most financially successful MBAs globally, earning an average reported annual salary of $224,628 three years after graduating. Time
Generally, U.S. has many highly prestigious business schools, but they are pretty. Even Several of the world’s highly-ranked non-U.S. business schools, such as Fontainebleau, France’s, are similar in terms of annual costs, but the significant differences are program length. Full-time MBA programs in the U.S. are generally 21-24 months in length. At the same time, a full-time MBA in Europe is for one year.
An Affordable Online MBA
If you want to reduce the cost of your degree, one way to do so is to earn an MBA degree online. Nowadays, many universities have started their online MBA programs. This means that a study can get an international degree and can take classes from their home country.
Is the cost of an MBA worth it?
An MBA degree is only worth the expense when the student wants to do a job in a business-related field, and the return on investment is high.
How much can I earn with an MBA?
At present, the average starting salary for MBA graduates can be as high as $110,000 to $130,000 per year for those graduating from top-ranked institutions, while MBA graduates from other schools can earn in the range of $75,000 to $90,000 per year.
We hope this article helped you understand the factors that affect MBA cost.