MBA Return on Investment (ROI)

Class Location: The Internet.

Description: This course gives students a better idea on what sacrifices need to be made in pursuing an MBA, and also the advantages of becoming an MBA graduate.

Objective: Find out whether it's actually worth it to get your MBA.

Those looking to pursue an MBA should look at this primarily as an investment opportunity. Such a decision should not be taken lightly. Embarking on 2 years of MBA boot camp should be determined with an end goal in sight. That is not to say you will not have any fun in business school, but it involves very hard work and plenty of it. You will have to learn to juggle recruiting, class and case assignments and networking all under pressure. And even if you are lucky enough to land your dream job during your second year, you are likely to experience some burnout before earning your degree.

To weigh your decision consider these variables:

Financial

• Current Salary

• Expected salary after graduation

• Summer internship salary

• Tuition, fees and books

• Room and Board

• Discount rate

To pursue a full-time MBA program, you will be losing about two years of your current salary plus whatever raises you realistically expected to earn so you want to be able to recoup these losses after earning the degree. You should also use a discount rate to account for the time value of the salary lost and the additional discounting of your post-MBA salary. The rate will vary from applicant to applicant.

Personal

• Desire for career change

• Willingness to relocate

• New friendships and networking opportunities

• Prestige

• Test yourself against top-notch future MBA leaders

For example, you may be making excellent money working on a trading desk. But the strong desire for a career change to something like strategic consulting may be enough for you to take a significant pay cut in order to find work that is more fulfilling for you personally.

A willingness to relocate may have to be a joint decision for those with a spouse who has an interest in your decision to earn an MBA.