{"id":26076,"date":"2014-11-02T10:57:31","date_gmt":"2014-11-02T17:57:31","guid":{"rendered":"https:\/\/gmatclub.com\/blog\/?p=26076"},"modified":"2014-11-16T15:23:43","modified_gmt":"2014-11-16T22:23:43","slug":"whats-an-mba-really-worth","status":"publish","type":"post","link":"https:\/\/gmatclub.com\/blog\/whats-an-mba-really-worth\/","title":{"rendered":"What\u2019s an MBA Really Worth?"},"content":{"rendered":"

\"MBA_Roi\"<\/a>This is the question tackled in a recent Poets & Quants <\/em>article<\/a> in which John Byrne presents PayScale data provided exclusively for P&Q<\/em>. In the analysis, PayScale calculates the estimated median pay and bonuses (not including stock-based compensation, retirement benefits, or non-cash benefits like healthcare) of graduates from the top 50 U.S. MBA programs<\/a> from 2004 to 2014. Here are some of the highlights from the article:<\/p>\n

\u2022 Harvard<\/a>, Stanford<\/a>, and Wharton<\/a> earn the most over a 20-year period (at $3,233,000, $3,011,000 and $2,989,000 respectively), with average income at the former nearly doubling the average income of graduates from Texas A&M\u2019s Mays Business School (at $1,781,820.)<\/p>\n

\u2022 Some schools \u201cpunched above their weight class\u201d like Boston University, whose graduates earned an average of $2,329,000, making the school rank in 19th<\/sup> place on this list, while ranked overall (in the regular MBA full-time rankings) by P&Q <\/em>in 40th<\/sup>.<\/p>\n

\u2022 Another high roller from lower down on the list is UC-Irvine Merage, where MBAs earn $2,319,932 over 20 years, putting them in 21st<\/sup> place, though generally ranked in 47th<\/sup>.<\/p>\n

\u2022 More food for thought: At HBS, the average age of graduation is 29 years old. Our 20-year payout here brings these MBAs up to 49 years old, giving them another 16 years until retirement at 65. Based on their 20-year earnings, they may earn another $3.2 million, which combined with their 20-year earnings, brings their total up to $6.5 million. (Remember, this is a conservative estimate as it doesn\u2019t include stock and non-cash compensation.)<\/p>\n

\u2022 Compare the above HBS figures to the $2.5 million estimated lifetime earnings (age 24 to 64) of people with a master\u2019s degree (non-MBA). (Data from the U.S. Census Bureau.) Someone with an MBA from Harvard will earn nearly three times as much as someone with a master\u2019s degree. And someone with an MBA from Texas A&M will still earn about $1 million more than the average MA\/MS holder.<\/p>\n

\u2022 More comparisons (based on U.S. Census Bureau data): The average high school graduate can expect to earn $1.2 million in a lifetime, compared to the $2.1 million of someone with a bachelor\u2019s degree. PhDs earn $3.4 million on average during their working lifetime. Doctors and lawyers can expect lifetime earnings of about $4.4 million \u2013 still less than the lifetime earnings of MBAs from at least 28 business schools.<\/p>\n

\u2022 According to PayScale data, graduates from BA programs earn a median $1,301,000 20 years post-graduation. All MBAs, on average, earned $1,771,000, with those in the top 50 earning a median $2,266,000. An MBA in general will earn you about half a million more than a BA; an MBA from a top 50 school will get you yet another half a million more.<\/p>\n

\"Looking<\/a>
\nSource:<\/strong> PayScale for <\/em>Poets&Quants<\/p>\n

\"For<\/a><\/em>
\n Source:<\/strong> Payscale Inc. for 20-year estimate, business schools reporting to <\/em>U.S. News for 2013 starting pay and bonus.<\/em><\/p>\n

\"Learn<\/a><\/p>\n

\"Accepted.com:<\/a><\/p>\n

Related Resources:<\/strong><\/p>\n

\u2022 Best MBA Programs: A Guide to Selecting the Right One<\/a>
\n\u2022 B-Schools with the Highest ROIs<\/a>
\n\u2022 Which Graduate Schools Should You Apply To?<\/a><\/p>\n

Accepted.com's experienced admissions consultants<\/span><\/a> can help you create the most impressive application possible with comprehensive packages<\/span><\/a>, <\/i><\/b>or provide targeted assistance from picking perfect programs<\/span><\/a> to designing a dazzling resume<\/span><\/a>, constructing engaging essays<\/span><\/a>, or preparing for intense interview<\/span><\/a>s<\/span><\/a>\u2026and more! Accepted.com has guided thousands of applicants to acceptances at top MBA programs since 1994 \u2013 we know what works and what doesn't, so contact us<\/span><\/a> to get started now!<\/p>\n

This article originally appeared on the Accepted Admissions Consulting Blog<\/a>, the official blog of Accepted.com.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This is the question tackled in a recent Poets & Quants article in which John Byrne presents PayScale data provided exclusively for P&Q. In the analysis, PayScale calculates the estimated…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,939,775,113,243],"tags":[1896,168,169],"class_list":["post-26076","post","type-post","status-publish","format-standard","hentry","category-mba","category-accepted","category-admission-consultants","category-applications","category-blog","tag-mba","tag-mba-value","tag-mba-worth","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\n\t\t\n