How Much Does an MBA Cost?

• Enrollment status. Full-time, in-person MBA programs are more expensive due to costs like room and board, relocation, and lost income. These can add $20,000 to $60,000 to the overall cost. Part-time programs, where you can work, charge per credit and are cheaper, from $230 at public universities to almost $2,000 at private schools.

• Program type. Traditional MBA programs take 2 years and require 30-60 credits. Accelerated programs can reduce tuition and living costs by shortening the time to complete the degree. Online programs are cheaper as they don’t charge out-of-state fees or room and board, and you can keep your job.

• School type.  Private institutions generally cost more than public universities, with in-state students paying the lowest rates. Prestigious programs or those offering additional services and networking opportunities tend to have higher fees.

• Wharton School of the University of Pennsylvania. Total tuition fees are $172,200 for the Class of 2025.

• MIT Sloan School of Management - Massachusetts Institute of Technology. Total tuition fees are $170,750.

• University of California, Berkeley - Haas School of Business. Total tuition fees are $167,465.

• Yale School of Management - Yale University. Total tuition fees are $167,100.

• Booth School of Business - The University of Chicago. Total tuition fees are $165,159.

• Northwestern University - Kellogg School of Management. Total tuition fees are $164,625.

• Cornell University - Johnson College of Business. Total tuition fees are $163,016.

• Stanford Graduate School of Business - Stanford University. Total tuition fees are $162,315.

• University of Virginia - Darden School of Business. Total tuition fees are $160,740.

• Dartmouth College - Tuck School of Business. Total tuition fees are $158,140.

• Indiana University - Kelley School of Business. Total cost $82,158.

• The University of North Carolina at Chapel Hill - Kenan-Flagler Business School. Total cost $125,589.

• University of Southern California - Marshall School of Business. Total cost $109,428.

• Rice University - Jones Graduate School of Business. Total cost $113,400.

• Carnegie Mellon University - Tepper School of Business. Total cost $141,320.

• University of Florida - Hough Graduate School of Business. Total cost $59,807.

• University of Denver - Daniels College of Business. Total cost $83,220.

• University of Nebraska (Lincoln) College of Business. Total cost $31,200.

• Santa Clara University - Leavey School of Business. Total cost $86,580.

• Jack Welch Management Institute. Total cost $47,450.

The ROI of an MBA is how much you invest in the program versus the value it provides. Generally, an MBA opens doors to higher-paying management and leadership roles. According to the Graduate Management Admission Council (GMAC) MBA graduates can expect a median base salary of $115,000. Over a lifetime, an MBA can yield seven-figure earnings, as per a Poets & Quants and PayScale study. 77% of MBA graduates report an increase in earnings. The ROI can be higher if you use your MBA to transition into higher-paying industries, such as healthcare administration, which is in high demand.

• Full-time, two-year MBA. Best for career changers or those with limited work experience. This is the most common graduate business program and offers in-depth learning and networking opportunities.

• Full-time, one-year MBA. Ideal for those with strong work experience and a clear career goal. This accelerated program is condensed into one year, allowing faster entry into the workforce.

• Part-time MBA. Designed for students who want to continue working while earning their degree. This format allows more flexibility but takes longer to complete.

• Online MBA. Best for those who need flexibility in their studies. The online format allows students to learn at their own pace and from anywhere, suitable for those with busy schedules.

• Executive MBA. For executives with five or more years of work experience. This program focuses on advanced leadership and management skills and often involves more practical, real-world applications.

• Mini-MBA. For those unsure if an MBA is the right choice. These shorter programs typically range from a few days to a few months and don’t result in a degree but offer business knowledge.

• Undergraduate transcripts. You will need to submit official transcripts from your undergraduate studies as part of your application.

• English language test scores. International students may need to submit scores from an English proficiency test, such as TOEFL or IELTS.

• GMAT score. Many MBA programs require a GMAT score, although some schools may offer alternatives or waive the requirement based on your work experience.

• Resume. A detailed resume showcasing your work experience, skills, and achievements is generally required.

• Personal essays and short answers. You will be asked to submit essays or short answers that demonstrate your goals, leadership potential, and why you’re applying to the program.

• Letters of recommendation. Most programs require two or more letters of recommendation from people who can speak to your professional abilities and character.

• Interview (if invited). If you’re selected, you may be invited for an interview either in person or virtually as part of the evaluation process.

• Application rounds. Most schools have multiple application rounds: Round 1 (September/October), Round 2 (December/January), Round 3 (March/April). Some schools also offer an early decision option, which requires a commitment to withdraw other applications if accepted.

Many pursue an MBA for a higher salary. In 2024, the average salary for an MBA graduate in the US is $120,000, much higher than those with just a bachelor’s degree. Employers also offer signing bonuses, with the median bonus being $10,500. This shows an MBA can significantly increase your earning potential.

But the salary increase comes at a big cost. The average tuition for an MBA in the US in 2024 is $61,410 a year, although costs vary by school. Also, full-time students have extra costs like room and board and textbooks. When calculating the total cost of an MBA, make sure to include these additional expenses. While the ROI of an MBA is clear, understanding the costs involved is key to making an informed decision.

Maximize scholarships, fellowships, and employer tuition assistance before taking out loans for your MBA. Some employers like Deloitte offer full tuition reimbursement but check for any work commitments post-graduation. If there’s still a funding gap, start with federal loans which offer benefits like income-driven repayment plans, and then consider private loans. To determine eligibility for aid and loans, submit the FAFSA.

• Choose an online program with a cost-per-credit model. Online MBA programs are generally cheaper than in-person ones due to campus fees and commuting cost savings. Many online programs also use e-books or open resources, which further reduce costs. When comparing online programs, focus on the cost per credit to get a better estimate of your total tuition.

• Seek out aid programs, private grants, and scholarships. While graduate students can’t access Pell Grants, they can apply for various aid programs, private grants, and scholarships. These funds can be based on merit, financial need, diversity, or career goals. Start by completing the Free Application for Federal Student Aid (FAFSA) and consult with a financial aid advisor to explore your options.

• Opt for a fast-track MBA. A fast-track MBA takes about a year to complete, which can reduce your overall costs. Although the tuition may not be much lower, you can start your career sooner and earn a higher salary faster.