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Let’s talk about full time MBA in USA/Europe where most of the Top B Schools are. Assuming you are currently working in a non-fancy job in industry earning $70K. No interest rate on your student loans for simplified calculations.


India’s top MBA in USA consultant, Scholar Strategy shares why it makes sense to do an MBA from USA and Europe despite the hefty cost.


Here are the financial aspects

  1. On an average, a FT MBA in USA will cost at least $150K and 2 years. Assuming you were earning $70K right now, that is a cost of $150K+$140K of opportunity cost = roughly $300K. Go for part-time to save your opportunity cost.

  2. For banking or consulting or high growth tech sector, average salaries post MBA can range between $90-$100K (total compensation however can add another 40–80K depending on bonuses). Taking a modest avg salary of $130K for our average candidate, 30% tax and $40K living costs, it means 5-6 years of break even period. As bonuses pile up and you ride higher the career ladder with your MBA brand, this is not a problem. You will eventually recover the cost and grow.

  3. For other non-traditional roles esp in non profits or startups, salaries may average out around $80-$90K in an optimistic scenario with no bonuses. You might break even in 8–9 years.

  4. If you end up performing below average or move back to a country where avg salaries are low, ROI may not even make sense extending to >10 years.


Career Growth

  1. If you are performing decently in your job and keep getting promoted, MBA add on does not help as much. Especially in tech, non profit and startup sectors, MBA may not be as big a must-have as in banking and consulting lines.

  2. If you are already at a senior position, it is better to convince your company to sponsor your Executive MBA.

  3. MBA makes sense if it can help in career switch you are looking for. For example, if you are a software engineer looking to get into Finance, yes MBA will give you what you need and may be the only option you have.


Network/Brand

MBA eventually is about its brand and networking opportunities. How much is that worth to you is something you need to figure out.

Some people know exactly what they are going to get out of it and how they will use it to get multi fold returns. If you are that person, then, by all means, go for it. Because when it comes to education, exposure, opportunities, swag/partying, attitude, and confidence, very few experiences can match MBA.


You will get what you put into it.


This post originally appeard on Why should anyone do an MBA?