Does an MBA Degree Increase Your Salary?
Earning an MBA, or a Masters of Business Administration, degree can increase your salary, teach you specialized skills, and provide you with new career opportunities. But getting your MBA is expensive, with an average cost of $62,600 for a two-year program versus $51,740 for a master’s degree in general at a public school. A degree from a top-tier school can be considerably more, with tuition and living expenses totaling $200,000 for the program.
Just how big of an MBA pay increase you’ll get in return depends on a number of factors, including the school you attend, the field you’re in, and your previous work experience. Here’s what to know about an MBA salary increase and how much you might expect to receive.
Table of Contents
Key Points
• MBA graduates may earn 70% more than those with a bachelor’s degree.
• The median starting salary for MBA grads may range from $85,000 to $120,000, which is much higher than the average for bachelor’s degree holders.
• The salary boost from an MBA varies significantly by industry — graduates in finance, technology, consulting, health care, legal, and manufacturing tend to earn very different post-MBA pay.
• Your MBA salary potential is strongly influenced by the prestige of your school, your previous work experience, and how specialized your MBA program is.
• Ways to pay for your MBA include student loans, grants, scholarships, and tuition reimbursement. You can also refinance your undergrad loans to possibly lower your payment.
Value of an MBA Degree
An MBA degree can make you more marketable to employers, which can in turn help you land a better job and a higher salary, research shows. And while earning your degree can come with a hefty price tag, taking out MBA loans is one option to help you pay for it.
The median starting salary of recent MBA graduates in the U.S. ranges from $85,000 to $120,000. That’s significantly more than the $68,680 starting salary of grads with a bachelor’s degree. Knowing how much you might earn could help you determine if an MBA is worth it.
An MBA can also help you advance in your career. MBA grads typically perform better and move up the ladder faster than other employees. That places them in high demand in the workplace, and 37% of employers plan to hire more MBA graduates in 2025 (up from 17%).
Average Salary Increase with an MBA
MBA graduates may earn up to 70% more than those with just a bachelor’s degree, assuming an entry level salary of $120,000 for MBA grads and $70,000 for those with a bachelor’s degree.
However, the amount your salary might increase once you have an MBA depends on the field you’re in. Here’s a closer look.
Salary By Industry and Job Function
The following industries tend to pay well for those who have earned an MBA, making them some of the best jobs for MBA graduates.
| Industry | Median Annual Salary |
|---|---|
| Finance | $175,000 |
| Technology | $162,750 |
| Consulting | $190,000 |
| Health Care | $163,000 |
| Legal | $225,000 |
| Manufacturing | $165,000 |
| Entrepreneurship & Startups | $151,200 |
Finance
Many MBA grads pursue a career in finance, and it can be lucrative. The average salary for an individual with an MBA in finance is $175,000, but the amount can be more than $250,000 annually depending on your position.
Technology
Another hot field for those with an MBA is technology, especially as AI becomes more prevalent. The average salary for MBA grads in tech is $162,750 a year. However, your MBA salary increase could run higher still and may even include a signing bonus.
Consulting
Those who work as consultants and have their MBA average about $190,000 annually, but a consultant’s salary may go up dramatically within a few years, especially if they work at a big firm.
Health Care
Health care management is a popular job for MBA graduates. The average earnings are $163,000 per year. Top earners can make over $200,000 per year, but those with less experience may make less than a six figure salary.
Legal
MBA graduates working in the legal field earn a median annual salary of about $225,000. Job title matters, though, with those working as general counselors earning more than as general attorneys.
Manufacturing
MBA graduates in the manufacturing field earn a median annual salary of $165,000, demonstrating the industry’s strong demand for leaders with advanced operational and strategic expertise. Job titles include industrial production manager, purchasing manager, general manager, and senior operations leader.
Entrepreneurship and Startups
MBA graduates in the entrepreneurship and startups field earn a median annual salary of $151,200. However, this can vary substantially. Those just starting out typically earn much less, whereas the income potential for successful business owners could be unlimited.
Factors Influencing MBA Salary Potential
In addition to the field you choose to work in, how much you’ll earn after getting your degree is influenced by such things as the MBA program you choose and your previous work history and salary.
These are the five major factors that can affect MBA salary potential.
School Reputation and Rankings
Although it’s likely to be pricier, going to a top-rated school to get your MBA can pay off in multiple ways. These schools tend to have robust networking programs and employer recruitment opportunities. Some colleges may help prospective graduates find internships and jobs. Also, grads from top 10 schools tend to earn more than those who attend other programs.
Before applying to an MBA program, do your research to see where recent alumni have ended up and which companies have recruitment relationships with the school. For instance, certain coveted employers might always attend a particular school’s job fairs. If a university has connections to companies you might be interested in working at, you may want to apply to their MBA program.
Recommended: Why Accredited MBAs Are Important
Specialization and Concentration
Every MBA program offers different classes, internships, and hands-on opportunities, and it’s important to look for ones tailored to your goals and career path. Choose a program with specialized concentrations in the field you’re most interested in. For instance, some MBA programs specialize in health care while others focus on finance.
If you’re currently in a field that you want to pivot out of — moving from marketing to consulting, say — an MBA could help with career change without going back to an entry-level job.
Work Experience and Performance
The more work experience you have, the more likely you are to score a higher salary once you get an MBA. This is especially true if that experience is relevant to the area of study you’re pursuing. Most people going for their MBA have about five years of experience on the job. And some MBA programs require students to have a certain number of years of work experience before they apply.
Networking Opportunities and Alumni Connections
Strong networking opportunities and access to a well-established alumni network can significantly influence your MBA salary potential. Business schools with active alumni communities provide valuable connections to hiring managers, industry leaders, and recruiters, often opening doors to high-paying roles that might not be publicly advertised. These networks can also offer mentorship, referrals, and insider knowledge that help you strategically position yourself in competitive job markets.
Internship and Recruiting Access
Many top business schools have strong relationships with leading employers who actively recruit MBA students for high-paying internships that often lead to full-time job offers. These internships provide crucial hands-on experience, skill development, and exposure to different industries, all of which enhance your marketability.
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Choosing the Right MBA Program
It’s important to find an MBA program that fits your interests and goals. Look for programs that offer concentrations in the areas and fields you want to pursue. Then review the curriculum and the courses offered to make sure they appeal to you.
In addition, learn where graduates of the MBA program have ended up. What companies do they work for and what kinds of jobs do they have? You might even reach out to ask how they felt about the program and if they would recommend it.
Location
Where the school is located is also a prime consideration. If you’re working and going to school at the same time, you’ll need to find a program in your area. You could also explore top online MBA programs if you want to take advantage of a particular school’s offerings when you’re unable to attend it in person. These programs tend to cost less than in-person ones, but you may miss out on networking opportunities.
If you’re a full-time student and you have the opportunity to move to attend school, you could choose an MBA program near the area where you hope to work. For instance, if you’d like to be employed in Silicon Valley, a school nearby might be a good choice for you. It may be easier to get an internship there as well as a job after graduation.
Cost
Of course, the cost of an MBA program is likely to be one of the most important factors in your decision. Beyond the tuition, find out the true cost of getting an MBA at any school you’re interested in. This includes living expenses, books, transportation, and so on.
Delivery Format (Online vs On-Campus vs Executive MBA)
In addition to location and cost, you need to consider how you want to learn the information. Some people learn best in a classroom environment where they can ask questions and interact with classmates face-to-face. Others prefer online learning where they can go at their own pace and learn the information on their own time.
Executive MBAs (EMBAs) are typically part-time and hybrid, with a mix of online classes, in-person modules, and intensive residential sessions. Most students can still work full-time while pursuing an EMBA.
How to Pay for Your MBA
There are a number of ways to pay for your MBA, such as student loans, scholarships, grants, employer sponsorships, and more.
Student Loans
You may want to consider both federal and private student loans. Federal loans include Direct PLUS Loans for graduate students from the Education Department. However, those are being eliminated for new borrowers on July 1, 2026.
Borrowers will have to rely on Direct Unsubsidized Loans moving forward. Starting July 1, 2026, borrowing is capped at $20,500 for graduate students, with a lifetime aggregate limit of $100,000.
Students can also rely on private student loans. Private graduate loans may have fixed or variable rates, and are offered by banks, credit unions, and online lenders. Be aware, though, that with private student loans, you will not have access to the same federal protections and programs you would with federal loans, including income-driven repayment plans.
Scholarships, Grants, and Fellowships for MBA Students
Scholarships, grants, and fellowships are some of the most valuable funding sources for MBA students because they do not need to be repaid. Many business schools offer merit-based awards to applicants who demonstrate academic excellence, leadership potential, or significant professional achievement. These programs can cover anywhere from a portion of tuition to the full cost of attendance, making them highly competitive but extremely worthwhile.
Employer Sponsorships and Tuition Reimbursement
Employer sponsorships and tuition reimbursement programs can be ideal for professionals who plan to keep working while pursuing their degree. Many companies provide partial or full tuition coverage as part of their employee development initiatives, seeing it as an investment in building stronger leaders and more skilled teams. For working students, this support can make an MBA far more affordable without taking on significant debt.
However, employer-assisted education typically comes with conditions that are important to understand upfront. Many employers require a commitment to stay with the company for a certain period after graduation, and leaving early may result in repaying some or all of the funds.
It’s best to ask your employer what they cover and what the expected commitment is from you prior to making a decision.
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The Takeaway
Earning an MBA may help you fulfill your career dreams and earn a higher salary. The degree could increase your salary by as much as 70%, depending on such variables as the school you attend and the field you work in. But getting an MBA can be costly, averaging more than $60,000 for a two-year program, and up to $200,000 for top-tier schools.
If you decide that earning an MBA makes sense for you, there are ways to help cover the costs and develop a solid budget. You can explore all options, including scholarships, grants, and federal and private student loans, as well as refinancing your existing loans.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What is the average starting salary with an MBA?
The median starting salary with an MBA ranges from $85,000 to $120,000. That’s far higher than the $68,680 starting salary of graduates with a bachelor’s degree.
Is an online MBA worth the investment?
Online programs offer greater flexibility and are typically less expensive than in-school programs. However, with an online program, you may not have access to all possible networking opportunities or the opportunity to speak with professors face to face. You may also feel less connected to the school and the overall experience.
How long does it take to recoup MBA program costs?
How long it takes to recoup MBA program costs is different for everyone, depending on the price of the program and the salary increase they enjoy after earning their degree. In general, though, it takes grads of two-year full-time MBA programs about three and a half years of working to recoup the cost. Those who enroll in online MBA programs recoup the cost in about two and a half years of work.
What factors most affect post-MBA salary?
Post-MBA salary is most affected by factors such as the reputation of the business school, the student’s pre-MBA work experience, the chosen concentration or specialization, and the industry and location of employment. Networking opportunities and internships during the program also play a significant role.
Do all MBA programs lead to higher salaries?
Not all MBA programs guarantee higher salaries. The impact on earnings depends on the program’s reputation, the student’s pre-MBA experience, the chosen specialization, and the job market. Top-tier programs and relevant industry experience often lead to better job opportunities and higher salaries.
Photo credit: iStock/Xavier Lorenzo
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