Skip to Main Content
HBS Online
  • Courses
    Open Courses Mega Menu
    • Business Essentials
      • Credential of Readiness (CORe)
      • Business Analytics
      • Economics for Managers
      • Financial Accounting
    • Leadership & Management
      • Leadership Principles
      • Management Essentials
      • Negotiation Mastery
      • Organizational Leadership
      • Strategy Execution
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • Entrepreneurship & Innovation
      • Entrepreneurship Essentials
      • Disruptive Strategy
      • Negotiation Mastery
      • Design Thinking and Innovation
      • Launching Tech Ventures
    • Strategy
      • Strategy Execution
      • Business Strategy
      • Economics for Managers
      • Disruptive Strategy
      • Global Business
      • Sustainable Business Strategy
    • Finance & Accounting
      • Financial Accounting
      • Leading with Finance
      • Alternative Investments
      • Sustainable Investing
    • Business in Society
      • Sustainable Business Strategy
      • Global Business
      • Sustainable Investing
      • Power and Influence for Positive Impact
      • Leadership, Ethics, and Corporate Accountability
    • All Courses
  • For Organizations
    Open For Organizations Mega Menu
    • Corporate Learning
      Help your employees master essential business concepts, improve effectiveness, and expand leadership capabilities.
    • Academic Solutions
      Integrate HBS Online courses into your curriculum to support programs and create unique educational opportunities.
    • Need Help?
      • Frequently Asked Questions
      • Contact Us
    • Black, Latinx, and underrepresented minority professionals
      Pathways to Business

      Stories designed to inspire future business leaders.

  • Insights
    Open Insights Mega Menu
    • Business Insights Blog
      • Career Development
      • Communication
      • Decision-Making
      • Earning Your MBA
      • Entrepreneurship & Innovation
      • Finance
      • Leadership
      • Management
      • Negotiation
      • Strategy
    • All Topics
    • Sample Business Lessons and E-Books

      Gain new insights and knowledge from leading faculty and industry experts.

    • Free Guide

      Learn how to formulate a successful business strategy.

  • More Info
    Open More Info Mega Menu
    • Learning Experience
      Master real-world business skills with our immersive platform and engaged community.
    • Certificates, Credentials, & Credits
      Learn how completing courses can boost your resume and move your career forward.
    • Learning Tracks
      Take your career to the next level with this specialization.
    • Financing & Policies
      • Employer Reimbursement
      • Payment & Financial Aid
      • Policies
    • Connect
      • Student Stories
      • Community
    • Need Help?
      • Frequently Asked Questions
      • Request Information
      • Support Portal
    • Apply Now
Login
My Courses
Access your courses and engage with your peers
My Account
Manage your account, applications, and payments.
HBS Home
  • About HBS
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
HBS Online
  • Courses
  • Business Essentials
  • Leadership & Management
  • Entrepreneurship & Innovation
  • Strategy
  • Finance & Accounting
  • Business in Society
  • For Organizations
  • Insights
  • More Info
  • About
  • Support Portal
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers
  • My Courses
  • My Account
  • Apply Now
  • …→
  • Harvard Business School→
  • HBS Online→
  • Business Insights→

Business Insights

Harvard Business School Online's Business Insights Blog provides the career insights you need to achieve your goals and gain confidence in your business skills.

 
Filter Results Arrow Down Arrow Up

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CORe
  • Design Thinking and Innovation
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

Filters

Topics

Topics

  • Accounting
  • Analytics
  • Business Essentials
  • Business in Society
  • Career Development
  • Communication
  • Community
  • ConneXt
  • Decision-Making
  • Earning Your MBA
  • Entrepreneurship & Innovation
  • Finance
  • Leadership
  • Management
  • Marketing
  • Negotiation
  • News & Events
  • Productivity
  • Staff Spotlight
  • Strategy
  • Student Profiles
  • Technology
  • Work-Life Balance

Courses

Courses

  • Alternative Investments
  • Business Analytics
  • Business Strategy
  • CORe
  • Design Thinking and Innovation
  • Disruptive Strategy
  • Economics for Managers
  • Entrepreneurship Essentials
  • Financial Accounting
  • Global Business
  • Launching Tech Ventures
  • Leadership Principles
  • Leadership, Ethics, and Corporate Accountability
  • Leading with Finance
  • Management Essentials
  • Negotiation Mastery
  • Organizational Leadership
  • Power and Influence for Positive Impact
  • Strategy Execution
  • Sustainable Business Strategy
  • Sustainable Investing
Subscribe to the Blog
*
Please complete this required field.
Email must be formatted correctly.
Please complete all required fields.
RSS feed

The ROI of an MBA: Is the Degree Worth It?

Harvard Business School MBA graduates throw their graduation caps
  • 22 Nov 2022
Catherine Cote Author Staff
tag
  • Business Essentials
  • CORe
  • Earning Your MBA

When considering whether to pursue a master of business administration (MBA), several questions come to mind, but most boil down to: Is it worth it?

Hundreds of thousands of students enroll in MBA programs annually to gain the combination of foundational and specialized business skills to excel in their careers.

Yet, business school is a commitment of time, effort, and money. If you enroll in a full-time program, you’ll take two years off work. If you’re in a part-time or Executive MBA program, you’ll juggle studying with your full-time job. The price of an MBA varies by program type and school but, on average, costs between $55,000 and $161,000. Naturally, the question of return on investment (ROI) is a big deciding factor for prospective MBA candidates.

So, how do you know if an MBA is right for you?

Here’s a breakdown of the current demand for MBA degrees, three ways you could experience a return on your investment, and how to decide if it’s worth it.


Free E-Book: A Guide to Advancing Your Career with Essential Business Skills

Access your free e-book today.

DOWNLOAD NOW

Demand for MBA Degrees

The skills gained in an MBA program can set you up for success—and organizations recognize the value of hiring MBA graduates.

According to a report from Statista, in 2021, 97 percent of surveyed companies hired MBA graduates, up from 80 percent in 2020 and 50 percent in 2009. The data for 2022 is on track to yield similar results, with a projected 92 percent of companies hiring MBA talent.

This demand for employees with MBAs shows in employment rates of 2022 business school graduates: 86 percent were employed at the time of graduation, according to a report by the Graduate Management Admission Council (GMAC).

It’s clear that organizations value MBAs, yet the same GMAC report also shows an increase in how graduates rank the degree’s value. In 2022, 85 percent of full-time MBA students reported their program’s value as “good to outstanding,” up from 82 percent in 2021. Likely contributing to this trend is the rise in career changes; the majority of 2022 business school graduates who used their degree to make a career change were successful.

The market demand for MBAs—as well as personal demand to reach career goals—is rising. Yet, graduate degrees are an investment, and deciding to pursue one is no small decision. Here are three ways an MBA can provide a return on investment.

Related: 10 Reasons It Makes Sense to Get an MBA

3 Ways an MBA Can Provide a Return on Investment

1. Career Trajectory

One way an MBA can provide a return on investment is the expansion and acceleration of your career.

“Business school is a two-year time commitment and a financial investment,” says Vai Schierholtz, director of marketing for MBA Admissions at Harvard Business School. “But, ultimately, the value of all the things you gain from a professional standpoint puts you in a position to accelerate your career.”

In an MBA program, you’ll learn how to solve complex problems and make decisions. These skills are highly valued in leaders and can not only help you land roles with increasing responsibility but lead your team through difficult challenges.

While you can develop these on the job or through other educational opportunities, an MBA provides a unique immersive experience, especially if you take the program full time. It provides the technical and soft skills to be an effective contributor and leader in a business setting.

“An MBA teaches you the hard and soft skills you need in business,” Schierholtz says. “Alumni often say that the hard skills helped them in the first three years of their first job, but their career accelerates after they start using the soft skills they developed in the MBA program.”

2. Earning Potential

Along with career acceleration comes increased earning potential. When you think of return on investment, you might wonder: How will an MBA impact my salary and bonuses?

According to GMAC’s Corporate Recruiters Survey, in 2021, the average starting salary for MBA holders was between 22 percent and 40 percent higher than for bachelor’s degree holders. Seventy-one percent of corporate recruiters agree that employees with a business school education earn more at their companies. GMAC reports that North American full-time MBA students received a 50 percent median compensation increase from pre-MBA to post-graduation: from $80,000 to $120,000.

“There’s a cost for you to go to business school, but the return on investment from a purely financial standpoint is compelling,” Schierholtz says. “Especially when you factor in long-term career prospects, like earning potential and the ability to make an impact in an industry that’s important to you, business school is a fantastic choice.”

While no specific salary is guaranteed, an MBA can set you up to earn more than you would without it.

3. Connections

Finally, an MBA can provide immense value in the form of connections.

Typical MBA programs create sections of students who take the required curriculum together. These sections are often comprised of a diverse set of individuals to foster empathy and new perspectives. Because you’ll engage, study, and work with these people for at least your first year, you’ll likely develop strong connections.

“Something people may not consider about business school is that it's two years to make new friends from incredible places around the world,” Schierholtz says. “Some of my best friends in life now are from my time at business school. Business school is a transformative experience. Any time you go through a transformative experience with others, it creates bonds that will last a long time. I think that's one of those returns on investment that you can't really value.”

Aside from the students and faculty you’ll spend time with during an MBA program, you’ll also enter into an alumni network upon graduating. For instance, Harvard Business School’s alumni network is made up of 87,000 alumni worldwide, spanning 170 countries and a host of roles and industries.

The connections you’ll make in business school can enhance your personal life and lead to professional opportunities to advance your career.

New call-to-action

Is an MBA Worth It?

Countless factors can influence the return on investment of an MBA. Ultimately, whether the degree is worth it depends on your career goals and circumstances. Weighing your personal finances, location, and family situation is an important part of the decision process, as are your professional goals and which program you decide to pursue.

Patrick Mullane, executive director of HBS Online and HBS Executive Education, provides advice on researching your options.

“Investigate the median salary of graduates by industry and compare that to what you’ll pay earning the degree,” Mullane writes in an article for Forbes. “The overall median may be skewed by higher-paying sectors, so be sure to focus on the industry you’re likely to enter upon graduation. Many people think education at any cost is worth it. It’s not.”

Weigh your personal circumstances and professional goals and consider how your school and future role could provide a return on investment.

While this is a personal decision, know that the time has never been better for MBA graduates in the workplace. The market demand for MBAs is high, and most MBA graduates report gaining value from their degrees.

If you aim to accelerate your career and become a well-rounded business leader, an MBA can help.

Are you interested in preparing for an MBA with foundational business skills? Explore our three-course Credential of Readiness (CORe) program and download our free guide to advancing your career with business essentials.

About the Author

Catherine Cote is a marketing coordinator at Harvard Business School Online. Prior to joining HBS Online, she worked at an early-stage SaaS startup where she found her passion for writing content, and at a digital consulting agency, where she specialized in SEO. Catherine holds a B.A. from Holy Cross, where she studied psychology, education, and Mandarin Chinese. When not at work, you can find her hiking, performing or watching theatre, or hunting for the best burger in Boston.
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

+–

We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

Are HBS Online programs available in languages other than English?

+–

We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Written English proficiency should suffice.

Do I need to come to campus to participate in HBS Online programs?

+–

No, all of our programs are 100 percent online, and available to participants regardless of their location.

How do I enroll in a course?

+–

All programs require the completion of a brief application. The applications vary slightly from program to program, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted.

Updates to your application and enrollment status will be shown on your Dashboard. We confirm enrollment eligibility within one week of your application.

Does Harvard Business School Online offer an online MBA?

+–

No, Harvard Business School Online offers business certificate programs.

What are my payment options?

+–

We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

What are the policies for refunds and deferrals?

+–

After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

 

Sign up for News & Announcements


  • • Please complete this required field.
  • • Email must be formatted correctly.
  • • Please complete all required fields.

Subject Areas

  • Business Essentials
  • Leadership & Management
  • Entrepreneurship & Innovation
  • Strategy
  • Finance & Accounting
  • Business & Society

Quick Links

  • FAQs
  • Contact Us
  • Request Info
  • Apply Now
  • Support Portal

About

  • About Us
  • Media Coverage
  • Founding Donors
  • Leadership Team
  • Careers @ HBS Online

Legal

  • Legal
  • Policies
Harvard Business School
Copyright © President & Fellows of Harvard College
  • Site Map
  • Trademark Notice
  • Digital Accessibility