The Value of an MBA – Is an MBA Worth It?

Article's Main Image

The most common excuse I receive regarding going to business school to get an MBA is, "I can't afford it." Well, here's a news flash for those that use this excuse:

No one can afford business school.

The typical business school student does not have the greater than $100K required to attend the average business school. I sure didn't have that much money when I entered business school. In fact, knock the "K" off the previous number and that's more like what I had in the bank back then.

It's important to recognize that going to business school is an investment in yourself that has an almost guaranteed positive return. To illustrate this, the UNC Kenan-Flagler Business School sent me a nice infographic showing the ROI of an MBA.

Two things stood out to me as interesting ...

First, the percentage increase in salary post-MBA is much, much higher for students with less work experience. Second, the typical payback time period is four years or less anywhere you go. Looking at the chart it is remarkable how consistent that number is right around four years. Just using simple math, what other investment pays a dividend of 25% per year?

MBA Math Takeaways:

  • Don't Wait! The sooner you go back to business school the greater the reward.
  • Invest in Yourself! You will be able to find a way to pay for school as there are a myriad of financial aid options. Don't think of it as some daunting expense running through your P&L, think of it as an investment in yourself (a capitalized expenditure) that will generate a significant return for the rest of your life.

03May20171219391493831979.png