June 20, 2019 By College Ave Student Loans
How Much Does an MBA Cost? Average MBA Degree Tuition & Costs
MBA School Costs
Business school is a popular choice for undergrad students and seasoned professionals looking to boost their career path. A master’s degree in business administration (MBA) is a general degree that prepares you for managing, improving, and understanding business functions, while allowing you to focus on specific areas like accounting, marketing, or management. There is no limit to potential jobs you can have with an MBA. The degree itself may lead to a salary increase and/or open new leadership job opportunities.
Earning an MBA can be a costly commitment that requires careful planning and consideration. Remember that an advanced degree costs more than just tuition. Costs include fees, materials, and adjustments for the cost of living where you decide to study.
Use our guide below to explore the costs of an MBA and what to expect.
MBA School Requirements
MBA programs require a four-year bachelor’s degree. There’s no required undergrad major, but most MBA programs require applicants to take the Graduate Management Admission Test (GMAT) exam to be accepted. The GMAT includes an analytical writing assessment, integrated reasoning, quantitative reasoning, and verbal reasoning components. The test takes about three and a half hours.
Once you’re accepted, MBA programs often let you choose between a full-time or part-time class schedule in many different formats and specialties. The total MBA program requires about 60 credits and will last four semesters, which can be taken over one or two years (full time), or part-time over more. You can also take many MBA courses online, depending on the school, or pursue an Executive MBA (typically two years or less). Classes will include topics like accounting, statistics, ethics, finance, economics, management, and entrepreneurship. Over the course of your MBA program, you will have the chance to explore different specialties and focus on whichever business component you are most interested in.
Private and Public MBA Tuition
The cost of an MBA will vary depending on where you study and how long of a program you choose. If you plan to attend in-person or move, you’ll need to consider the cost of living and other supplies that are required. Total tuition and fees at the top business schools in the US can exceed $100,000 at Harvard, Stanford, and The Wharton School. Some less expensive MBA programs include the Kelley School of Business at $51,182 for Indiana residents or $74,084 for non-residents; the Tuck School of Business’ MBA (21 months) is around $80,000. More examples are below.
Most Expensive MBA Full Tuition & Fees Cost
$155,528 Tuition at The Warton School
Ranked #1 Business School by U.S. News
More Affordable In-State MBA Costs
$75,824 Tuition at University of Texas–Austin (McCombs)
Ranked #19 Business School by U.S. News
MBA tuition can be between $50,000 and $200,000+ for the full two years. Money Under 30 also points out the lost opportunity cost issue if you leave your job to attend grad school full time: “If you are earning $50,000 per year on your job before enrolling in an MBA program, the two-year opportunity cost will be $100,000. That’s on top of all the other direct expenses related to the degree.”
Total Cost of an MBA
Over two or more years, an MBA student can expect to pay between $70,000 and $200,000+ during their MBA. As with any degree program, the tuition is greater at more prestigious schools. It’s a major investment in your career, and it provides a unique opportunity to expand your business knowledge and deepen your understanding of the professional landscape. Thankfully, there are hundreds of careers fit for someone with an MBA, many of which are high-earning leadership positions across various industries.
According to U.S. News, the average salary for an MBA graduate is about $90,000 five years after graduating. Top earners in consulting and financial services were making around $120,000 each year. In addition to a higher salary, there are also many options for paying for your MBA. Whether you partner with an employer reimbursement plan or take advantage of loans, grants, or scholarships, there are many options to help you pay for your MBA.
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