Are you thinking about getting a Master of Business Administration degree?
I got one.
It’s a big commitment.
But is it worth it?
Is it really worth the time and effort?
Will you make enough money to make a solid return on your tuition invest?
Will your career options significantly open up?
We can’t quantify your improved career options but we can analyze your investment return.
Calculate Your Increase in Income
Let’s look at an example.
For this example, we’ll assume you are a financial analyst.
According to Payscale, the middle of your salary range as a financial analyst with a Bachelor of Business Administration is $58,590.
Now we need to find your salary if you get a Masters of Business Administration.
According to Payscale, the middle of your salary range as a financial analyst with a Master of Business Administration is $64,877.
So your salary increase is $6,287 per year.
Find Your MBA Cost
This will vary depending on how you take classes.
Online is cheaper than in the classroom.
If you go full time, you have to include lost wages.
If your current employer pays for a portion of it, you can calculate that too.
For this example, we’ll use my experience.
I paid $42,000 to get a Master of Business Administration from Georgia State University.
I didn’t go full time and quit my job. So I don’t have to add in lost wages.
Calculate Your Return
Divide $6,287 by $42,000 to find a simple return.
Our return in this example is 15%.
That’s pretty good.
I’d say that’s a solid investment.
That’s without all the qualitative benefits.
Let’s look at it another way too.
Divide $42,000 by $6,287. This is your pay back period.
It will take 7 years to get your money back.
That’s not too bad either.
This is a very simple example.
Almost too simple but it’s really conservative too.
So you can feel comfortable about these numbers.
And you’ll never regret bettering yourself by getting more education.
And if you do it correctly, your wallet will thank you too.
Are you going to get a Master of Business Administration?
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