MBA ROI Calculator
Find out if an MBA is worth the cost. Calculate your break-even point, total return, and how long it takes to pay off your investment.
How the MBA ROI Calculator works
Enter your current salary, MBA costs, and expected post-MBA salary. See exactly when you’ll break even and your lifetime return.
MBA programs cost $100,000-200,000. Know if the financial return justifies the investment before you commit.
How it works
Tutorial
An MBA costs $100,000-200,000+ when you include tuition, lost wages, and living expenses. This calculator shows you if the investment pays off and how long it takes to break even.
Use the calculator above for instant results, or follow this guide to calculate manually.
The Formula
| Metric | Formula |
|---|---|
| Total MBA Cost | Tuition + Lost Wages + Living Expenses |
| Salary Increase | Post-MBA Salary – Pre-MBA Salary |
| Break-Even Years | Total MBA Cost ÷ Annual Salary Increase |
| 20-Year ROI | (Lifetime Earnings Increase – MBA Cost) ÷ MBA Cost × 100% |
Step-by-Step Example
Let’s calculate ROI for a full-time MBA program.
Step 1: Calculate Total MBA Costs
| Expense | Amount | Calculation |
|---|---|---|
| Tuition (2 years) | $120,000 | $60,000 per year × 2 |
| Books and fees | $8,000 | $4,000 per year × 2 |
| Living expenses | $60,000 | $30,000 per year × 2 |
| Lost wages | $160,000 | $80,000 salary × 2 years |
| Total MBA Cost | $348,000 |
Step 2: Calculate Salary Increase
| Salary | Amount |
|---|---|
| Pre-MBA salary | $80,000 |
| Post-MBA salary | $130,000 |
| Annual increase | $50,000 |
Calculation:$130,000 – $80,000 =$50,000 per year
Step 3: Calculate Break-Even Point
How many years to recover your investment:
$348,000 total cost ÷ $50,000 yearly increase =6.96 years
You’ll break even in about7 yearsafter graduation.
Step 4: Calculate 20-Year Total Earnings Difference
| Career Path | Calculation | Total |
|---|---|---|
| With MBA (20 years) | $130,000 × 20 years | $2,600,000 |
| Without MBA (22 years) | $80,000 × 22 years | $1,760,000 |
| Earnings difference | $840,000 |
Note: 22 years without MBA vs 20 with MBA (you lose 2 years in school)
Step 5: Calculate Net Benefit
Subtract MBA costs from earnings increase:
$840,000 earnings difference – $348,000 MBA cost =$492,000 net gain
Step 6: Calculate ROI Percentage
Return on investment over 20 years:
($492,000 net gain ÷ $348,000 investment) × 100 =141% ROI
What This Means
In this example, you’ll be behind financially for the first 7 years after graduation. But over a 20-year career, you’ll make $492,000 more than without the MBA – a 141% return on your investment. The MBA pays off if you’re patient and the salary increase is real.
Important factors:
- This assumes you actually get the higher salary (not guaranteed)
- Doesn’t account for career opportunities an MBA might open up
- Top schools typically have better ROI than lower-ranked programs
- Part-time MBAs have better ROI since you keep earning
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