Is an MBA worth it?

By: Evan Thompson

Edited by: Andrew H. Rice, Ph.D.

Published: January 9, 2024

Many professionals view an MBA as a prestigious and lucrative degree that can open doors to leadership roles and higher salaries. However, this degree is not a one-size-fits-all solution for career success. You should consider your career goals before making this investment.

Here's a closer look at MBA programs, including common requirements, potential return on investment, and other factors to consider before pursuing this degree.

What is an MBA?

An MBA is a master's program that provides the technical and soft skills necessary for success in business and management. Most MBA programs consist of 36-40 credits, take 1-4 years to complete, and cover many topics. These include finance, data analysis, leadership, and communication.

MBA programs come in various formats and cater to different career stages and learning styles. Programs may offer full-time or part-time options, as well as in-person or online classes. As a postgraduate degree, students can pursue an MBA after earning a bachelor's degree.

Benefits of an MBA

Whether an MBA is worth it depends on your career goals, financial flexibility, and expectations.

Can you make a good salary with an MBA?

Getting an MBA often leads to higher earnings. MBA grads earn much higher wages compared to a bachelor's degree or other types of master's degrees.

According to the 2023 Corporate Recruiters Survey, MBA grads earn an estimated median salary of $125,000. In comparison, professionals with only a bachelor's degree make a median salary of $74,000 a year, while master's degree grads earn a median annual salary of about $86,000.

Are MBAs in demand?

The 2023 Corporate Recruiters Survey found that global recruiters from public companies hired MBA grads at a 91% rate. The demand for MBA grads surpassed that for graduates of any other type of business master's program. MBA grads also had the highest projected salaries.

How to decide if an MBA is right for you

Ultimately, you should base your decision to pursue an MBA on whether it aligns with your long-term goals, budget, and timeline. Ask yourself questions like:

• Is there room in my budget to afford an MBA program?
• Does the program I'm interested in have a good reputation?
• Do I have enough time in my life to pursue an MBA?
• Does the ROI of this degree match my expectations?
• What impact do I hope an MBA will have on my career?

Make sure you inform your decision with thorough research and consideration of circumstances and goals.