A Master of Business Administration (MBA) can be a powerful career accelerator, from higher salaries to a greater position in the job market, a graduate-level business education is impactful. It does, however, require an investment. You might wonder if it’s right for your career path. How much does an MBA cost, and is it worth the investment?
At ·¬ÇÑÊÓƵ (ACE), we believe that quality education shouldn’t come with a high price tag. This comprehensive breakdown will assess the true value of an MBA degree by examining tuition costs, additional expenses and return on investment (ROI) to help you make an informed decision about your professional future.
Breaking Down the Cost of an MBA
When considering pursuing an MBA, the cost is often the first concern for prospective students. While some MBA programs involve a significant financial investment in tuition and related expenses, more affordable options offer quality education without the excessive cost.
Tuition Costs: What You Can Expect
Higher education continues to see tuition increases, and the average total cost of an MBA in the United States is about. Beyond base tuition, many programs include additional costs for textbooks, technology fees and application fees. MBAs at top-tier universities like Harvard Business School have a tuition rate of.
In contrast, ACE offers one of today’s most affordable online MBAs with graduate-level courses at just $235 per credit hour for a total cost of $9,1091, and it can be completed in less than a year.2 Our streamlined program offers substantially greater value compared to competitors whose programs are gravely unaffordable.
The Cost of Living While Earning an MBA
For traditional in-person MBA programs, students must consider housing, food, transportation and lifestyle costs on top of tuition. These expenses vary dramatically depending on location. Online learning allows students to forego relocation costs.
Hidden and Opportunity Costs
Beyond tuition and living expenses, prospective MBA students should think about these often-overlooked costs:
- Lost Income: For full-time MBA programs, students sometimes leave their jobs, resulting in one to two years of foregone salary.
- Application Fees: Many programs charge fees for applying, and serious candidates typically apply to multiple schools.
- Exam Fees: GMAT or GRE preparation courses and fees can add up, especially if you take them more than once.
- Technology Requirements: Additional software or hardware needs can add hundreds or thousands to your total cost.
- Books and Materials: Some programs include course materials, but others require you to purchase costly textbooks and software.
At ACE, we’ve designed our MBA program specifically to minimize hidden costs, and we’ve simplified our fee structure. Plus, we don’t require the GMAT or GRE, saving you substantial exam preparation time and testing expenses. Instead of expensive textbooks, we exclusively use Open Educational Resources, making our program truly zero-cost for learning materials.
Things to Consider When Selecting an MBA
When evaluating different MBA programs, several factors beyond cost should influence your decision.
MBA Duration and Opportunity Cost
Time is money, especially when it comes to advanced degrees. Traditional MBA programs typically take two years to complete, while accelerated or online options can be completed in 12 to 18 months
Online vs. In-Person Learning
Online or in-person course deliveries are the most common ways to earn your degree, however, some MBAs might be offered in a hybrid format, where you do a little bit of both. Each pathway offers pros and cons.
In-person learning requires students to have access to the campus as well as availability during class times. This is a great opportunity for students who have flexible jobs or have not joined the workforce yet. The shortcoming is a potential relocation requirement and flexibility with course offerings.
An online program is the most flexible option, and often, the most affordable. Students are able to network across the globe and also maintain personal and professional commitments while studying.
Hybrid learning is a unique balance of both in-person and online learning, as it requires access to the campus, but it may have the flexibility that online learning offers.
Education Quality
Accreditation, faculty expertise and program reputation are important considerations because you want to ensure that your MBA equips you for the next level of your career. Quality should never be compromised for cost savings. Oftentimes, this information can be found on an institution’s website. You can also search through reviews.
For example, ACE is accredited by the Higher Learning Commission (HLC), which means your degree meets federally recognized educational standards. Our MBA coursework is grounded in evidence-based theories and real-world situations to help you apply your learning right away.
Employer Benefits
Many employers offer tuition assistance or reimbursement for job-relevant degrees. Before committing to an MBA program, investigate whether your company provides:
- Direct tuition assistance programs
- Reimbursement upon successful course completion
- Educational leave options
- Salary increases or promotions upon degree completion
ROI: Is an MBA Worth the Investment?
The true value of an MBA lies in its ROI. Several metrics can help determine whether the expense justifies the potential benefits.
Salary Increase
A master’s degree is a great pathway to higher roles and promotions that lead to salary increases that may not be available to you with only an undergraduate degree.
For example, for every $1 ACE students invest in their education, they receive $19.20 in higher future earnings.3 This significant bump in earnings often comes quickly after graduation.
Career Growth and Networking Opportunities
Whether your courses are offered online or in person, an MBA is a remarkable way to build a professional network of business leaders with various work experiences. These are the connections that help you launch, maintain and develop the business career of your dreams. Additionally, a strong alumni network can lead to rewarding career opportunities.
Maximize Your Education Investment
Your investment matters, and it’s critical that you ensure you’re making a wise choice when selecting your MBA.
To calculate your personal ROI from an MBA, consider:
- Total cost of the program (tuition + fees + opportunity costs)
- Projected salary increase after completion
- Anticipated timeline for career advancement
- Non-financial benefits (knowledge, network, confidence)
Final Checks for Your Own Assessment
When determining if an MBA is right for you, ask yourself a few key questions.
- What are my career goals?
- Can I balance work, life and study?
- How will I finance my education?
- What specific skills am I seeking?
- What is my timeline?
When evaluating the true cost of an MBA, look beyond the sticker price to consider the total investment – financial, professional and personal.
Learn more about the MBA program at ·¬ÇÑÊÓƵ.
