About the Calculator
The MBA salary calculator shows the potential payoff from completing an MBA program.
As an MBA graduate, you can expect to earn more. You will:
- have extra knowledge and skills to improve on-the-job performance (skills effect)
- be more competitive when going for promotions or other jobs (credential and networking effects)
- open up new job opportunities for which an MBA offers an advantage (career shift effect).
The calculator assumes an immediate salary jump and that the benefit is maintained throughout your career.
Note that there is no discounting to account for the diminishing value of future dollars. This effectively assumes the salary premium grows by the interest/discount rate.
The cost of an MBA includes:
- any tuition fees you pay and
- any foregone earnings from not working full time.
An MBA is likely to pay for itself provided you can achieve a noticeable boost in salary. It has the potential to deliver a long stream of income benefits that more than covers short-term costs.
You can significantly reduce the cost if you work while studying (such as by doing an online course) and/or by enrolling in a fast-tracked program (less than 1.5 years). Often, the main cost of studying for an MBA is foregone earnings.
The combination of long-term benefits at the cost of current income may explain why MBA students are usually young. Statistics show that most full-time MBA students are in their late 20s or early 30s (Fortuna Admissions).