How Much Does An Mba Make
The average MBA salary in 2020 was $137,890, according to U.S. News.
Though the boilerplate MBA salary reached nearly $138,000 in 2020, the salary range for professionals with MBAs is wide. Recent graduates who went into the nonprofit or public sector reported a much lower starting salary of $65,000 per year, just the boilerplate salary and bonuses for professionals with executive MBAs exceeded $230,000 per year in 2019.
Prospective or current MBA students should understand the factors that influence MBA salary numbers. For example, MBA graduates in the Northeast earn a base starting salary of $thirty,000 more than those in the South. This guide walks through the unlike factors that contribute to MBA salaries.
What Factors Influence an MBA's Salary?
Many factors influence salary potential for recent MBA graduates. The type of MBA program, the business organization school, and the MBA specialization all shape earning potentials afterward graduation — equally do location, work experience, and industry. Typically, graduates with work experience earn college salaries than those without experience and professionals with executive MBAs written report college salaries than those with traditional MBAs.
The following sections look at factors that shape MBA salaries. By researching programs, specializations, and target industries, prospective MBA students tin can determine their potential salary range after earning a caste.
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Boilerplate MBA Salaries Based on Select Criteria
$122,840
From the Michael K. Foster School of Business organization at the University of Washington (2019)
Source
$101,670
Management Consultant With 5 Years' Experience (2021)
Source
$97,530
Finance Manager With x Years' Experience
(2021)
Source
$84,700
In New York, NY (2021)
Source
$77,880
In Texas (2021)
Source
$193,200
For EMBA Graduates (2020)
Source
$143,910
From a Top ten Program (2019)
Source
$81,100
With a Concentration in Sustainability (2021)
Source
$142,170
Marketing Manager (2020)
Source
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Type of MBA
Business concern schools, often called B-schools, offering a variety of MBA options. Students tin enroll in a full-fourth dimension traditional MBA program, an executive MBA, a part-fourth dimension MBA, or an accelerated one-twelvemonth MBA. A traditional MBA typically takes two years, while a role-time MBA offers the same curriculum over a three-yr period. Accelerated MBA programs may offer fewer specialization options.
The type of MBA influences salary expectations. Executive MBA programs admit experienced business organisation leaders seeking advocacy to top controlling roles. Professionals with an executive MBA earn a salary higher than the average MBA salary of nearly $138,000 in 2020. According to the Executive MBA Quango, graduates with an executive MBA earned an average annual salary of over $232,000 in 2019.
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Area of Specialization
MBA students tin can specialize in a diversity of areas, including finance, entrepreneurship, healthcare management, and sustainability. During their MBA plan, students complete additional coursework in their specialization area. They may likewise pursue an internship in their field. These specializations prepare graduates for focused career paths.
The MBA specialization y'all choose also influences your earning potential. For case, the highest-paid field in 2019 was consultancy, followed by finance, healthcare, and technology. MBA students who choose specializations in these high-paying areas may earn more than those in other specializations. Prospective MBA students with a clear thought of their specialization should research the top-ranked MBA programs in that specific concentration.
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Pick of B-School
The selection of concern schoolhouse influences salary — though the effect is largely limited to the elevation-25 B-schools. Co-ordinate to 2019 salary data, graduates from Wharton at the University of Pennsylvania earned an boilerplate starting salary of $172,000. Twelve of the meridian 25 schools reported starting salaries above $160,000 and 17 schools reported starting salaries of more than $150,000.
About all of the top 50 MBA programs reported starting salaries of over $100,000 per year. And other factors — including location, experience, and industry — tin can play a significant role in your MBA salary.
If y'all like what y'all are doing, though, and getting regular raises and promotions, maybe going back to school is not worth the attempt, time, and expense. Standing education does expose you to the latest trends and developments, but you may be able to go that through other things similar professional development, attending conferences, reading, etc.
If you cannot beget a full-time program like I did, it is worth exploring part-fourth dimension and online options, and many companies may aid defray the costs, as well.
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Geographic Location
Where you live likewise influences your salary. MBA graduates living in the Northeast earn the highest average salaries, co-ordinate to the 2019 GMAC corporate recruiters survey. Professionals in the Midwest and W earn boilerplate salaries of around $115,000, while professionals in the South earn the lowest average salaries, with $95,000 per year in base pay.
Job prospects also vary depending on the metropolis. For example, cities similar Houston, Texas and Portland, Oregon study high salaries for management careers. Researching the local task market, local companies, and local salary rates helps prospective MBA students determine the earning potential with an MBA.
Best Online MBA Programs
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Piece of work Feel
Work feel before earning an MBA may influence salaries as well. According to GMAC information from 2012, MBA graduates with at to the lowest degree one year of work experience before earning their degree earned starting salaries significantly higher than those with less than one year of work experience. College graduates considering a gap year of entering the workforce earlier entering their MBA program benefit from pursuing job opportunities. The trend as well benefits working professionals enrolled in online MBA programs.
As business concern professionals gain experience, their salaries tend to increase. Over time, MBA graduates often move into executive and leadership roles that yield higher pay.
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Industry and Function
MBA salaries vary depending on manufacture and role. In 2019, MBA graduates working in consulting earned the highest average starting salaries, at $135,000 per twelvemonth. The finance industry followed closely backside with a $125,000 base salary. Technology and healthcare paid starting salaries of around $115,000 per year.
The everyman starting salaries came in the nonprofit and regime sectors, where MBA graduates received offers of around $65,000 per twelvemonth. When considering an MBA program, prospective applicants should research the task prospects in their potential field to get an idea of bacon ranges.
A Real MBA Grad on Salary Expectations
TBS sits down with MBA grad, Paige Arnof-Fenn, to discuss salary expectations and negotiation for anyone considering an MBA.
Did you notice that the task market place supported your bacon expectations after getting an MBA?
I know having an MBA helped my resume stand out to go interviews and gave me credibility as an entrepreneur. It besides put me in a college salary subclass, so it was worth doing for sure.
What advice practice you have for someone because an MBA?
I do take a bias for going to the very best school y'all can get into. Information technology is a huge opportunity cost to go dorsum for a degree, then information technology has to be worth your while. By far the almost valuable thing about it were the friends I made and the network I built.
Do you have any communication for people negotiating the salary on a job offer afterwards getting an MBA?
Do your homework and exist realistic. You may need to get artistic and look at perks, holiday, stock options, benefits, etc. and consider total compensation across just salary, since everyone values the pieces differently today. Five days per week on site vs. hybrid vs. virtual flexibility may have dissimilar salary requirements.
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Paige Arnof-Fenn
Preferred Pronouns: she/her
Paige Arnof-Fenn is the founder and CEO of global marketing and digital branding business firm Mavens & Moguls, based in Cambridge, Massachusetts. Her clients include Microsoft, Virgin, The New York Times Company, Colgate, venture-backed startups, and nonprofit organizations. She graduated from Stanford University and Harvard Business organization School. Arnof-Fenn is as well a popular speaker and columnist who has written for Entrepreneur and Forbes.
Oft Asked Questions Nearly MBA Salaries
What Is the Starting Salary of an MBA?
The boilerplate base starting salary for MBA graduates striking $105,000 per year in 2020, according to the GMAC recruiter survey. That number dropped from $115,000 in 2019.
Will an MBA Increase My Salary?
For many professionals, earning an MBA increases their salary. Professionals with an MBA earn above-average salaries, with an boilerplate MBA salary of nearly $135,000 per yr.
How Much Can I Brand With an MBA Caste?
On average, MBA graduates made virtually $135,000 per year in 2020, according to U.S. News & World Report. Notwithstanding, MBA salaries vary depending on location, school, experience, and specialization.
Should I Invest in an MBA?
Before enrolling in an MBA program, prospective applicants must consider their investment. In addition to the cost of an MBA, graduate school tin can mean fourth dimension away from work, higher student loan debt, and less retirement savings in the curt term. Notwithstanding, the long-term benefits of an MBA may outweigh those costs.
For instance, an MBA opens career doors and oftentimes translates to a higher earning potential. Many professionals find these opportunities outweigh the costs. In addition, MBA students benefit from many financial aid opportunities, including MBA scholarships. Business organization graduate students too qualify for federal financial help.
The resource below can assist you lot evaluate whether to earn an MBA, how to pay for an MBA, and how to find the right online MBA program:
The average toll of an MBA degree varies widely. Visit this resource to learn more virtually costs, including GMAT fees and textbooks.
Some MBA programs cost over $100,000 per yr. Discover how to pay for an MBA and how MBA students can avoid high student loan payments.
MBA students qualify for scholarship opportunities based on their school, specialty area, and career plans. Professional associations, private foundations, and B-schools all offering scholarships for MBA students. Larn more about MBA scholarships.
The MBA application process can feel overwhelming. When should you lot accept the GMAT? How early should you ask for recommendation letters? This guide offers a footstep-past-step approach to completing MBA applications on time.
What is the difference betwixt the 3 business organisation accrediting agencies? Why should MBA applicants choose an accredited programme? This guide explains MBA accreditation.
Online MBA programs entreatment to students for several reasons, including affordability and the flexible learning format. This ranking lists the most affordable online MBA programs to assistance students find a B-school that fits their budget.
A growing number of top-ranked business concern schools offer online MBA programs. In online programs, MBA students consummate coursework in a distance learning format while pursuing internships in their local area. Larn more virtually the all-time online MBA programs for 2021.
Genevieve Carlton
Genevieve Carlton holds a Ph.D. in history from Northwestern University. After earning her doctorate in early on modern European history, Carlton worked as an banana professor of history at the University of Louisville, where she adult new courses on the history of science, Renaissance Italian republic, and the witch trials. Carlton has published five peer-reviewed articles in top presses and a monograph with the University of Chicago Printing. She also earned tenure with a unanimous vote before relocating to Seattle. Learn more almost Carlton's piece of work at genevievecarlton.com.
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