If you are considering or pursuing a Masters degree in Business Administration (MBA), the investment is well worth it. An MBA is one of the best paid graduate degrees you can take as it can lead to six-figure salary.
That said, how much MBA graduates make is dependent on several factors, including where they live, where they graduated, what industry they work in, their experience and the specialized license they gain.
Average MBA salary
According to the 2024 Corporate Recruiter Survey Report of the Graduate School Management Admissions Council, the average starting salary for US MBA graduates is around $120,000, while Payscale estimates the average salary for MBA graduates is $100,000.
An MBA salary depends on four things:
- where you live
- The school you attended
- Your exact job
- experience
MBA graduates take on a variety of roles, ranging from product developers to finance or key operational roles. The higher the salary will be. Below are some of the best paying jobs for MBA graduates across industry.
| industry | Median MBA |
|---|---|
| Legal and Professional Services | $225,000 |
| consulting | $190,000 |
| Financial Services | $175,000 |
| Manufacturing | $165,000 |
| technology | $162,750 |
| Fintech | $157,500 |
| Source: Wharton University, Pennsylvania |
Factors that influence average MBA salary
Your exact MBA salary is based on a variety of factors and research can have a significant impact on your payment amount.
Long years of experience
Years spent years in your role are directly correlated with your payments, but even new MBA alumni can create six figures. Generally speaking, the more professional experience you have, the higher your salary.
The following table shows how MBA graduates’ salaries tend to increase over time.
| Long years of experience | Median MBA |
|---|---|
| 4-6 years | $122,000 |
| 10-14 years | $166,000 |
| Over 15 years | $200,000 |
| Source: Glassdoor |
Gender wage gap
on the other hand Gender wage gap It has improved over the past 57 years. Women continue to earn less than men because they work in similar jobs. According to the 2024 Forté Foundation Online Survey, the average post-MBA wage for women was $131,449 shortly after winning an MBA.
According to a Forté Foundation study, the gap widens when MBA survey participants are asked to identify their current salary. The average current salary for men was $216,487, while the average current salary for women was $179,987. That’s a difference of $36,500.
| Experience level | male | woman |
|---|---|---|
| advance | $80,852 | $86,338 |
| First job post-MBA | $140,007 | $131,449 |
| Average current salary | $216,487 | $179,987 |
position
Location plays a big role in how much you can expect to earn. Cities with a high cost of living tend to have a higher average salary, while states with a low cost of living tend to have a lower average salary.
Demand for the MBA role in the state could also affect average pay. For example, areas in high demand for MBA-level jobs often have higher average wages. Below are the states with average salary of the highest, middle and lowest.
MBA salary is the highest
| state | Average MBA salary |
|---|---|
| Washington | $187,300 |
| new york | $180,923 |
| Massachusetts | $180,607 |
| under | $178,097 |
| Vermont | $175,833 |
| Source: Ziprecruiter |
State with medium distance MBA salary
|
state |
Average MBA salary |
|---|---|
| Illinois | $160,250 |
| main | $160,113 |
| Wyoming | $158,959 |
| Nebraska | $157,674 |
| Indiana | $157,362 |
| Source: Ziprecruiter |
MBA salary is lowest
| state | Average MBA salary |
|---|---|
| Louisiana | $141,414 |
| Georgia | $139,638 |
| Arkansa | $136,747 |
| West Virginia | $126,026 |
| Florida | $123,582 |
| Source: Ziprecruiter |
I went to university
Various MBA programs may promote more knowledge and skills that can track well-paid roles in the companies you apply to. Certified programs typically hold more weight than non-certified programs.
If you go to a program with a network of successful alumni, you are more likely to get a higher salary as you tend to hire other alumni or start new things. Students who graduated from MBAs at these schools in 2024 had the highest average departures.
Starting salaries for MBA graduates by school
| school | salary |
|---|---|
| Stanford University | $221,471 |
| University of Pennsylvania (Wharton) | $213,129 |
| University of Chicago (Booth) | $212,211 |
| Harvard University | $210,125 |
| Massachusetts Institute of Technology (Sloan) | $205,270 |
| Dartmouth College (Tuck) | $204,090 |
| New York University (Stern) | $203,176 |
| Columbia University | $202,234 |
| Northwestern University (Kellogg) | $202,225 |
| Cornell University (Johnson) | $200,405 |
| Source: US News and World Report |
Is MBA worth it?
Ultimately, the question of whether an MBA is worth it depends on your career aspirations, You may need to borrow Pay for your program. According to Sofi, the average MBA graduate receives a debt of $81,218 just to complete graduate school.
Nellie Gaynor, an Ivywise MBA and graduate admissions counselor, believes that MBAs from top schools are definitely worth it.
The research supports Gayner’s observations. Graduate School Management Admissions Council 2024 Corporate Recruiter Survey Report This shows that starting salaries for US MBA graduates are approximately 1.75 times higher than those of graduates with bachelor’s degree holders.
Conclusion
Earning an MBA can significantly increase your salary depending on where you live. Some states have an average salary of nearly $190,000, but you need to consider years of experience, the type of work you pursue, and other factors that may affect your revenue. Before paying thousands of dollars in an MBA program, weigh the pros and cons and see if it’s the best career move for you.
