Does the value of an MBA justify its cost?

How popular are MBA programs? Back in 2017, US News and World Report noted a rise in applications for MBA programs across the USA.¹ In 2024, Fortune reported US MBA programs had reversed a decline to post double-digit growth in admissions over two years.² And in 2025, Validated Insights forecast that MBA enrollments would continue to grow at a Compound Annual Growth Rate (CAGR) of 3.2% through 2030.³

The Graduate Management Admission Council simply calls the MBA "the world's most popular graduate management degree."⁴

It's also one of the most expensive. Citing the National Education Statistics, Forbes puts the average cost of an MBA program in the US at $31,367 per year.⁵ Most MBA programs take at least two years to complete, so that suggests an average cost of $62,734. Poets & Quants notes that in 2025, the ten most expensive MBAs in the USA were all asking for more than $250,000 for a two-year MBA–and that the number of institutions at that price point had doubled in 12 months.⁶

MBAs are getting increasingly popular, but also increasingly expensive. Understandably, this leads prospective students to question the ROI of the programs they are looking at, especially with the proliferation of formats available. What is the value of an online MBA? How does one evaluate whether the six-figure tuition fee is worth it? Is a cheaper MBA likely to deliver the desired impact?

This considers the ROI of getting an MBA, from understanding the cost of an online MBA to unpacking the merits of full-time vs part-time programs.

Understanding the cost of an MBA

Before you can fully assess the value of your online MBA or full-time program, it's important to calculate the cost accurately.

Tuition and fees are the easiest cost element to assess, as these will typically be published by your prospective university for you to consider. Since most courses operate on a credit system, with a certain number of credits required for graduation, it can be useful for fees to be expressed on a per-credit-hour basis.

For example, US News and World Report put the average per-credit-hour cost of the cheapest online programs at $320.⁷

In addition to tuition costs, consider additional expenses, such as materials you might need for your studies (a laptop, books etc.), any travel costs, and living expenses.

Finally, there is an opportunity cost to consider. This cost–the cost of the paid work you aren't doing when studying, for example–is typically highest for full-time, on-campus programs. Putting a paid job on hold to spend time and money on education is a significant opportunity cost. Online programs offer flexibility that can significantly reduce that opportunity cost, but there is always going to be something you give up in order to spend time on your studies. And whatever that is has a value too.

Key factors that determine MBA value

Cost is relatively easy to calculate. The value of an MBA can be harder to assess because much of that value might be intangible.

For example, MBAs are a tried-and-tested route to career advancement opportunities. They offer skill development, with high-level training in management, analytics, and strategy–all key managerial and leadership qualities. An MBA is also a source of networking opportunities, a chance to meet alumni and make connections that can help you develop professionally.

This ultimately pays off in access to high-paying industries and leadership roles.

The best MBA programs can prove to you that these outcomes are realistic for their graduates, through the accomplishments of their alumni networks and the salary and employment data for their graduates.

Financial ROI: Does an MBA pay off?

Of course, there's more to calculating the value of an advanced degree than comparing the average cost of an online MBA to potential salary outcomes, but if you're considering a significant educational investment, you're likely hoping it'll pay for itself. The good news for MBA graduates is that yes, MBAs are likely to increase base salary. According to GMAC, in 2024 employers offered MBA graduates the highest inflation-adjusted median starting salary ever recorded in the US.⁸ US News data, drawn from 133 ranked full-time MBA programs, put the average base salary plus signing bonus for 2024 graduates at $121,324.⁹

In addition to looking at average salary increases after graduation, consider the long-term earning potential of an MBA. Where do you see yourself in five years? How about in 10 years? Your earning potential will likely increase over time, alongside experience and new opportunities.

Payback periods are also a useful way of evaluating the difference in value between program types, and the math is more straightforward than it might seem. Take the total cost of your program—tuition, fees, and opportunity cost—and divide it by your expected annual salary increase post-graduation. The result is your estimated payback period in years. For example, if your total investment is $62,000 and your salary increases by $25,000 a year, you'd recoup your costs in just under two and a half years. Many students in online or part-time programs typically continue working while they study, which can also reduce the payback timeline by eliminating the opportunity cost of lost income that makes full-time programs significantly more expensive in practice.

Non-Financial Returns

Not everything an MBA delivers shows up in your paycheck. The degree's non-financial value naturally varies depending on your goals, your program, and what you do with what you learn, but there are returns that most graduates share.

Skills development is one. An MBA builds the kind of analytical and strategic thinking that tends to translate into increased confidence and a broader sense of what you're capable of professionally. This can open doors to management or other leadership opportunities you might not have pursued otherwise.

Then there's the network. A good MBA program connects you with an active alumni community and a cohort of peers who may become professional collaborators and friends for life. For many students, that expanded network is itself a primary reason for enrolling. And the breadth of knowledge an MBA provides tends to pay off in career flexibility over time, offering you the ability to move across industries or roles in ways that a narrower credential might not allow.

Who benefits most from an MBA?

What you do with an MBA depends largely on your individual circumstances and preferences.

Broadly, MBAs seem best suited for early-career professionals or career switchers. Many MBA programs require candidates to have some work experience before they enroll, in part so that they have knowledge and experience to share with their cohort, and so that they have started to develop a sense of what they want to achieve in their careers.

For example, individuals targeting executive positions or specialized business roles may choose to do an MBA to acquire the specific knowledge they require for their next step forward professionally.

How to evaluate whether the degree is worth it

Ultimately, whether an MBA is worth it depends on how well the degree aligns with where you want to go.

If the senior roles you're targeting are held by people with MBAs, that's a signal the credential carries weight in your field. Then look at outcomes data for the specific programs you're considering. Salary figures, employment rates, and alumni trajectories will tell you more than rankings alone.

And be sure to compare program types and formats. The growing variety of MBA program types means there is almost certainly a format optimized for your career stage, schedule, and budget, without requiring you to put your life on hold.

The Online MBA from the Kansas University School of Business is ranked #8 among online MBAs in the USA by US News and World Report.¹⁰ Among our recent graduates, 85% reported receiving a raise within six months of graduation, and the average post-graduation salary increase was 21% for KU online MBA grads.¹¹

Find out more about the program on our website, including detailed course descriptions and admission information. When you're ready to discuss how an online MBA from Ku can be of value to you, schedule a call with an admissions outreach advisor.