A major investment decision requires some amount of due diligence to figure out the risks as well as the returns involved, so that you have an idea of what’s in store for you and you have no unpleasant surprises later.
An MBA degree, especially from an international location, is a huge self-investment. So, you’d definitely be interested in evaluating what ROI (Return on Investment) this degree has to offer.
Benjamin Franklin once said ‘An investment in knowledge always pays the best interest.’ Absolutely true! However, it’s worthwhile to compare the various programs and get a picture of long it’d take to pay off your MBA debt and start receiving positive returns on your investment. After all, you’re not only investing your hard-earned money, but also your precious productive years and endless effort in procuring an MBA degree.
Deriving the ROI value
To calculate the ROI of MBA programs, you’d need to know the average post-MBA salary and then weigh it against the program cost. The program duration is an important factor as the expense would significantly increase for a two year MBA as against a one year program.
Financial Times (FT) releases its annual global MBA rankings for colleges/universities. Various parameters are also analysed and colleges ranked accordingly. Value for money which is indicative of a program ROI is one such parameter. This value is calculated by dividing the post-MBA alumni salary three years after graduating by the total cost of the program. This cost would take into account the MBA tuition, and related expenses as well as the opportunity cost (forgone income during the duration of the program) minus the scholarship or any financial aid obtained.
Based on FT’s ‘Value for money rankings’ (2018), here’s the list of schools according to their geography.
MBA programs with the best ROI
MBA programs in USA with the best ROI
Ranking | Business School |
---|---|
1. | University of Florida: Hough |
2. | University of Connecticut School of Business |
3. | Brigham Young University: Marriott |
4. | University of Texas at Dallas: Jindal |
5. | Wisconsin School of Business |
6. | Georgia Institute of Technology: Scheller |
7. | Ohio State University: Fisher |
8. | Pennsylvania State University: Smeal |
9. | Michigan State University: Broad |
10. | Purdue University: Krannert |
11. | Arizona State University: Carey |
12. | University of Pittsburgh: Katz |
13. | Rutgers Business School |
14. | Rice University: Jones |
15. | Emory University: Goizueta |
16. | University of Notre Dame: Mendoza |
17. | Indiana University: Kelley |
18. | Vanderbilt University: Owen |
19. | Washington University: Olin |
20. | University of Washington: Foster |
21. | University of Rochester: Simon |
22. | SMU: Cox |
23. | Stanford Graduate School of Business |
24. | Boston University: Questrom |
25. | University of California at Irvine: Merage |
26. | Boston College: Carroll |
27. | University of Texas at Austin: McCombs |
28. | Cornell University: Johnson |
29. | University of Minnesota: Carlson |
30. | Babson College: Olin |
31. | University of California at Berkeley: Haas |
32. | UCLA: Anderson |
33. | University of Chicago: Booth |
34. | University of San Diego School of Business Administration |
35. | University of North Carolina: Kenan-Flagler |
36. | University of Michigan: Ross |
37. | Harvard Business School |
38. | Yale School of Management |
39. | Carnegie Mellon: Tepper |
40. | Dartmouth College: Tuck |
41. | University of Maryland: Smith |
42. | University of Virginia: Darden |
43. | Columbia Business School |
44. | Northwestern University: Kellogg |
45. | MIT: Sloan |
46. | Georgetown University: McDonough |
47. | New York University: Stern |
48. | University of Pennsylvania: Wharton |
49. | Duke University: Fuqua |
50. | University of Southern California: Marshall |
MBA in UK with the best ROI
Ranking | Business School |
---|---|
1. | University of Cambridge: Judge |
2. | Durham University Business School |
3. | Lancaster University Management School |
4. | Leeds University Business School |
5. | Warwick Business School |
6. | University of Oxford: Saïd |
7. | Cranfield School of Management |
8. | University of Strathclyde Business School |
9. | University of Edinburgh Business School |
10. | City University: Cass |
11. | Imperial College Business School |
12. | University of Bath School of Management |
13. | Alliance Manchester Business School |
14. | London Business School |
MBA in Europe with the best ROI
Ranking | Business School | Country |
---|---|---|
1. | EDHEC Business School | France |
2. | INSEAD | France |
3. | IMD | Switzerland |
4. | ESMT Berlin | Germany |
5. | Mannheim Business School | Germany |
6. | Rotterdam School of Management, Erasmus University | Netherlands |
7. | University of St Gallen | Switzerland |
8. | The Lisbon MBA | Portugal |
9. | University College Dublin: Smurfit | Ireland |
10. | SDA Bocconi | Italy |
11. | HEC Paris | France |
12. | EMLyon Business School | France |
13. | WHU Beisheim | Germany |
14. | Copenhagen Business School | Denmark |
15. | ESSEC Business School | France |
16. | ESADE Business School | Spain |
17. | IESE Business School | Spain |
MBA in Asia with the best ROI
Ranking | Business School | Country |
---|---|---|
1. | Insead | Singapore |
2. | HKUST Business School | China |
3. | Shanghai Jiao Tong University: Antai | China |
4. | Renmin University of China School of Business | China |
5. | Nanyang Business School | Singapore |
6. | National University of Singapore Business School | Singapore |
7. | Sungkyunkwan University GSB | S Korea |
8. | Singapore Management University: Lee Kong Chian | Singapore |
9. | CEIBS | China |
10. | CUHK Business School | China |
11. | Fudan University School of Management | China |
12. | Indian Institute of Management Calcutta | India |
13. | Indian Institute of Management Ahmedabad | India |
14. | University of Hong Kong | China |
15. | Indian Institute of Management Bangalore | India |
16. | Indian School of Business | India |
MBA in Canada with the best ROI
Ranking | Business School |
---|---|
1. | Western University: Ivey |
2. | McGill University: Desautels |
3. | University of Toronto: Rotman |
MBA in Australia with the best ROI
Ranking | Business School |
---|---|
1. | Melbourne Business School |
2. | AGSM at UNSW Business School |
Why the top schools rank low for RoI
Top business brands including Wharton, Fuqua, Kellogg, Columbia figure at the bottom in the above table. This is because the methodology used for calculating these rankings takes into consideration the salary three years after graduation. Due to higher program costs, the loan repayment time would be longer for these top MBA programs, however with an MBA degree from one of these top ranked schools, you may be better equipped to earn a higher salary in the long run.
There are other publications and companies who’ve have shared their opinion on the MBA ROI topic.
According to a GMAC survey, it’s not just the salary that measures the ROI. Along with salary, alumni acknowledge that other aspects such as personal development, managerial knowledge and technical skills contribute towards ROI assessment. Another observation has been that MBA graduates, on an average, are able to recoup their MBA investment in a period of less than 4 years post-graduation.
SoFi (Social Finance, Inc.), a personal finance company has compared MBA programs through data gathered from MBA grads with an average of three years work experience. The calculations compare the ratio between the average salary and the average debt for each school; the higher the value the better the ranking for the b-school.
Whatever the method employed for calculating the ROI factor, the results derived may be used for reference purpose and should not be looked upon as an absolute guide for short listing your business schools. Finally, there are other key factors more likely to influence your decision including how much of a fit you are for the MBA program and to what extent the program can help you meet your post-MBA goals.
Again, you never know, if you were to get a fantastic scholarship offer from any of the top schools, the ROI calculations would surely tilt in your favour!
Also read:
– Payback time for the top MBA colleges in the world
– Best value MBA programs
– Experience of a candidate who competed with top-tier MBA students to make it into Google
– What is the RoI of an MBA from USA?
– The Long-Term Value of an MBA
– Best MBA programs in USA for Indian students
References: 1, 2, 3
hi sameer sir,
I’m planning to pursue mba from abroad directly after graduation.
I’m currently pursuing law from india.
10TH SCORE- 9.2 CGPA ,
12TH- 84%,
Current average of gpa in college-7.8
I’ll complete law next year i.e 2019 and I want to directly go for MBA because most probably I’ll have to get married after 3-4 years.
what should I do as I won’t be able to get any work experience? and which universities should I target?
hi ,
i have done my MBA in finance and logistics want to pursue my career in finance and supply chain mangement . what path i have to take to achieve my goals ? and is there any specific certified course available in finance which will help me to start my career in financing
Hi Sameer,
I am a BMS graduate and I passed this year only. I also have a work experience of 2.5 years as an Inside sales execute in a real estate firm. Which course should be better for me as I am not much keen n doing a full time MBA because I want to continue my work. Is Executive MBA is the right course for me for my growth in terms of post and salary. Please suggest.
Hi Sir,
I was working with an MNC till june 2017 (2.5 years), i took a drop because there was no further growth left in my project and decided to go for mba, the results have come out and i know there is ample space for improvement but i think it will be sensible to do it along with a job now as I have already studied the syllabus once. The main issue is that since march I have been looking for a job and there have been no positive outcomes and its June now so starting my mba preparation is a must, So will it be an issue if there is a 2 year gap if i do not work and continue with my preparation? or should I stop thinking about getting into the IT sector again and instead start volunteering for an NGO? Please help as I am not able to think straight.
@Divyanshi: That won’t be a good plan. Here’s why work experience is important for MBA programs: https://www.mbacrystalball.com/blog/2011/08/21/work-experience-why-is-it-important-for-international-mba-applications/
@Sirpy: When you already have an MBA in finance, why do you want another qualification in the same field? Try reaching out to companies hiring at junior levels.
@Mohini: Read here to know if an Executive MBA is worth it or not: https://www.mbacrystalball.com/blog/2016/02/22/executive-mba-worth-it-or-not-emba/
@Tanmay: I don’t fully understand your story. If you already have an MBA, and are looking for another MBA because the first one could get you a job, then I think that’s not a good idea. Best to keep looking for a job.
Hi Sameer,
i am planning to pursue MBA next year, most probably will give GMAT in Dec, i am an engineer (2004-08), and currently working in the capacity of a project manager (operations) in telecom company, with a total of 9 years of experience , i am super confused between a 1year /2 year MBA , which will be better for me ?
i am looking to switch the industry , and currently looking at the colleges of Europe and Canada.
which country and colleges should i target , and which MBA ( 1 year / 2 year ) will be more beneficial for me, considering my age and experience.
Hi, Myself madhuri allam, planning to pursue mba this year. I have completed my bachelors in business management. May i know the colleges that are in vizag which serve me with best RETURN OF INVESTMENT?