Is an MBA Worth It? 2025 Guide

If you are looking to advance your career in business, pursuing a Master of Business Administration (MBA) degree is typically seen as a worthy investment. Often, the long-term benefits of earning the degree—including salary gains and career advancement opportunities—outweigh the degree programme’s immediate financial and time costs.

Along with the potential financial benefits, many corporate recruiters consider an MBA degree an asset because of the job skills degree holders commonly possess. Additionally, participating in an MBA programme can set you up with lucrative networking opportunities and business contacts via your university’s career placement programmes, your classmates, and your programme faculty.

That being said, some factors make some MBA programmes more worth the investment than others. Read on to learn more about how you can conduct a cost/benefit analysis to determine whether getting your MBA can offer the return on investment you’re looking for.

Benefits of earning an MBA

An MBA can be a respectable credential to add to your CV, signalling a high-value skill set that many hiring managers look for in employees. MBA programmes also offer unique career and networking resources reserved for students and space for building beneficial long-term relationships.

Salary and job outlook

Earning your MBA can qualify you for higher salaries and more job opportunities. According to a 2024 survey of corporate recruiters, the Graduate Management Admissions Council (GMAC) projected that MBA graduates would earned a median annual salary of 54,348 USD in 2024, much more than non-MBA degree holders who were projected to earn 43,478 USD with a bachelor’s degree alone [1]. Keep in mind that your post-MBA starting salary will depend on factors such as industry, location, years of experience, specialisation, and the university you attended.

Additionally, hiring projections remain strong. Ninety percent of Western Europe-based recruiters surveyed expected to hire MBA graduates in 2024 [1]. 

In-demand skills

Because of the rigorous coursework typical of many MBA programmes, employers often recognise a common set of transferable skills that graduates acquire through their higher education experience.

According to GMAC, in the near future, the most valuable skill of MBA graduates in Western Europe will be artificial intelligence [1]. Other skills employers look for in MBA graduates include the following:

• Analytical skills

• Leadership

• Presentation skills

• Project management

To many employers, an MBA degree validates that you possess the skills they seek and are ready to use these skills to succeed in higher-level business positions.

Career resources and networking opportunities

MBA faculty and staff want to invest in their students’ success. Your success will hopefully help attract future students with similar potential to succeed, whether that’s through positive employment reports or reflected in their programme ranking. As such, many programmes incorporate career resources and networking opportunities into their offerings.

These services, such as talent development and coaching, can help lead to more lucrative career options. Similarly, MBA programmes with strong alumni networks may offer direct points of contact within companies hiring around the world.

According to a 2022 GMAC survey, 76 per cent of graduate business degree alumni felt that their programme helped them develop their professional network, and 68 per cent agreed that their programme offered opportunities to accelerate their career advancement [2].

Relationship building

You’ll also find value in the relationships you can build whilst pursuing your MBA. Seventy per cent of alumni reported that their programme prepared them to work in culturally diverse organisations [2].

Many MBA admissions offices seek to populate incoming classes with a diverse group of students who can offer a range of business perspectives. To capture that co-learning opportunity, many programmes will incorporate group projects into the curriculum alongside discussion-based classes, and some students may also choose to engage in study groups or extracurricular activities.

Typical MBA degree cost

Alongside the benefits of getting an MBA degree, you’ll need to consider some notable costs. Getting your MBA degree will require time, money, and energy. Whether the benefits outweigh those costs depends on your situation and career goals.

Time commitment

How long it takes you to get your MBA will depend on the type of programme you enrol in. A traditional full-time MBA programme usually takes one year to complete, though attending part-time can increase your time commitment, and accelerated options can decrease it. Some programmes also allow flexibility for students to work full-time whilst taking classes outside of normal business hours.

Tuition

MBA tuition can range anywhere from £8,000 to £120,000 [3]. It’s typically dependent on which university you choose to attend. A degree can be a sizable investment, and many students turn to savings, scholarships, employer sponsorship, or loans to help ease the financial commitment.

MBA return on investment (ROI)

One way to understand whether an MBA degree will be financially worth it for you is to calculate your return on investment (ROI). This is essentially a comparison of your long-term potential gains to your short-term investment costs. Keep in mind that this calculation only deals with the financial benefits of an MBA, as you can’t put a price on the educational and relational benefits of the degree.

An ROI calculator, such as this one from MBA.com, can help you estimate your post-MBA earnings potential.

Do more expensive programmes lead to better-paying jobs?

The reputation of your chosen school can influence your future salary. London Business School, for example, ranks number one in the UK in the Financial Times MBA Rankings 2024, with its graduates projected to earn 192,331 USD within three years of graduating [4]. However, it’s worth noting that higher tuition doesn’t ultimately reflect the programme’s quality or your eventual earnings.

When is an MBA worth it?

An MBA is often a worthy investment for most people with a career in business; however, professionals pursue this level of education at different points in their careers. For this reason, no standard “right” time exists to pursue an MBA—only the right time for you, and that’s when an MBA will be most worth it.

To decide whether an MBA might be worth pursuing, consider your current position, your growth path toward your goals, and how quickly you hope to advance in your career. Allow for the fact that you will need at least three years of professional experience before you start your degree.

Benefits of an online MBA

If you are looking for a more flexible way to pursue your MBA, you may want to look at an online programme. Online MBAs offer the same education as their in-person counterparts, but they allow you to learn from anywhere. Oftentimes, online MBAs are also less expensive than on-campus options.

Continuing your business education on Coursera

An MBA can be useful for advancing your professional career. With this degree, you can build in-demand business skills, increase your earning potential, and gain access to various networking opportunities. If now feels like the right time to continue your business education, consider the Master of Business Administration (iMBA) from the University of Illinois Gies College of Business on Coursera. This competitively ranked programme offers you the flexibility to learn from anywhere with an internet connection at a breakthrough price.

Sign up for Coursera today for free to start your seven-day, all-access trial and explore business Specializations in digital marketing, strategic leadership, financial management, and more.