What Is the Cost of an MBA?

Total Cost of an MBA

Graduate tuition is typically more expensive than an undergraduate degree, and MBAs are no exception. Depending on what factors are at play, you can expect to pay $40,000-$150,000 for an MBA degree.

However, for many students the higher earning potential, more job offers, and increased opportunities for advancement outweigh the cost. According to the Bureau of Labor Statistics (BLS), chief executives, a common career for MBA graduates, earned a median salary of $185,950 as of 2020.

Calculating the Cost of an MBA

Textbooks, transportation, and room and board all influence the total cost of getting an MBA. These expenses can accumulate, depending on how you choose to mitigate those costs. For instance, you could opt to earn your MBA from a public school within your home state, where you can get a discounted, in-state student tuition rate.

Other factors that can affect your MBA cost include admission test fees and living expenses. For example, international students studying in the U.S. who are not native English speakers may need to take the Test of English as a Foreign Language (TOEFL) and pay a small fee, and some MBA programs have travel requirements, especially for practicums.

Factors Influencing MBA Program Cost

Many factors can affect MBA prices. As a result, the cost of an MBA program can range widely based on program features. You can use the following list of factors as a checklist when researching prospective MBAs.

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Public vs. Private

Private colleges cost significantly more than public colleges due to their lack of state funding. Private colleges can also be more prestigious, allowing them to charge a higher premium.

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In-State vs. Out-of-State

Many public colleges offer lower tuition rates for in-state students. This practice encourages in-state students to remain local and give back to the state economy. If a learner stays within their home state for schooling, they often remain in state for employment.

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Prestigious vs. Not as Recognizable

A school's level of prestige can also influence the price of an MBA program. Prestigious schools, like University of Southern California and Yale University, charge high tuition costs. Innovative institutions, such as Reed College and Bard College, also charge more than less recognizable schools. However, less recognizable schools can still offer quality MBA programs, but with lower tuition costs. Additionally, a private school may not be as recognized outside its local area; if you're planning to build a career elsewhere, a state school might be a better bet.

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Employer-Funded Tuition

Many employers will gladly help workers pay for MBA degrees by partially subsidizing the cost, typically through employee reimbursement. Businesses do this because they benefit from have more educated personnel. These programs typically require that the employee continue to work at the company for a set number of years after graduation.

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Ability to Work While Pursuing an MBA

Your ability to work while earning your MBA can greatly affect degree cost. Enrollees need to pay for a lot of things on top of tuition, like transportation and textbooks, and these can add up to a lot. If you attend school while working, however, you can just address extra costs as you go. This also reduces your student loan debt.

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MBA Program Structure

MBA programs can vary widely in structure, which can influence program cost. Here's a quick breakdown of the various program structures available when pursuing an MBA.

• Full-Time MBA Program: A full-time MBA program typically takes two years to complete. Full-time enrollees typically cannot maintain employment while pursuing their degrees, so they need to take out student loans. A lack of steady income affects your ability to pay for your MBA and life expenses.
• Part-Time MBA Program: Part-time MBA programs can take 2-5 years to complete. Part-time programs allow enrollees to continue working while in school, meaning they can cover expenses as they go. However, the increased time spent pursuing a degree can make the degree more expensive; many schools offer lower per-credit tuition rates for full-time courseloads.
• Accelerated MBA Program: Accelerated MBA programs take a year to complete. This structure generally does not accommodate a full-time work schedule, as learners need to concentrate on an increased course load. However, accelerated programs can save you money due to shorter degree timelines.
• Online MBA Program: Online MBAs are another opportunity to earn your degree in a more affordable structure. These degrees do not require you to attend classes in person, allowing you to maintain employment and income while pursuing an education. Also, online programs do not involve transportation or room and board costs, though they may incur fees for things like online student resources.