You’re starting to think about what an MBA degree could do for you. A salary boost? A promotion? Or maybe a career shift into an entirely new industry?
You’re not alone. A 2019 survey1 found that 42% of respondents applied to an MBA program in order to increase their salary, while 57% hoped to change their career.
That said, can earning an MBA really make it happen? Here’s the lowdown:
How much does an MBA raise your salary? It’s all about the Benjamins.
The numbers don’t lie: Whether the increase is large or small, an MBA degree will give your salary a sweet bump.
According to a recent Coursera Salary Guide,2 MBA salaries get a boost of anywhere from 7% to 32%, depending on your industry. Not only that MBA graduates earn up to $50k more annually than those with a bachelor’s degree alone.
Iowa MBA graduates report an average salary increase of 34% post-graduation (around $16k), while about 37% move to a new company. If you’re still wondering why should I get an MBA, there’s much more to come.
Bank on long-term leverage
Diminished returns do not apply when it comes to an MBA degree. A 2021 study3 showed that the average salary for MBA graduates over time grew from between 9 to 35 percent.
The average MBA's annual salary after five years fell in the range of $142k for women to $152k for men, while the average MBA salary after 10 years ranged from $179k to $242k for women and men, respectively.
While there’s not a wealth of comprehensive data on the average MBA salary by age, SmartAsset4 reports that from age of 25 to 54, the average American salary jumps from about $52,000 per year to just over $63,600 per year (that's a 22% increase).
With MBA salaries exceeding those without the degree by 76%,5 that 22% increase ensures even larger returns for MBA grads over time.
What type of job can I get with a MBA? Potential = unlimited.
Typical MBA curriculum provides a comprehensive overview of all functions of business. This means that career opportunities for graduates span many industries and disciplines. Here’s a look at some of the most popular options:
Technology
Some of the most interesting and in-demand careers in business lie within the tech industry. Companies like Amazon, Google, and Microsoft6 hire MBAs at above-average salaries in roles like product management, corporate finance, marketing, sales, and business development. Are you in line to be the next Jeff Bezos?
Analytics
From understanding consumer behavior, to managing supply-chain logistics, to predicting new product performance, the world of business is driven by an understanding of data. More and more companies are recognizing the need for analytics professionals. MBA graduates are well-suited for finance, operations, and marketing analyst roles, as well as corporate strategy and product development.
Finance
From Senior Financial Analyst to VP of Finance to Chief Financial Officer (CFO), the finance industry offers MBAs growth opportunities and salaries ranging from $72k to $160k+, according to PayScale.com.8 If you’ve got a head for numbers, an MBA will help you land a great career in this reliable, secure industry.
Marketing
Even the most innovative products and ideas can’t get off the ground without an effective marketing plan. MBA graduates in the marketing space have the know-how to target the right audience, launch effective promotions, and track their performance. They’re a great fit for roles like marketing director, marketing strategist, creative director, and chief marketing officer (CMO).
Healthcare
While it may be an unexpected pairing, an MBA offers unique opportunities within the field of healthcare. Those with industry experience plus an MBA are primed for roles such as healthcare administrator, policy analyst or researcher, pharmaceutical brand manager, hospital CFO (chief financial officer) or CEO (chief executive officer) and more.
Operations
You live and die by a process manual. You can’t get enough of managing projects. Efficiency is your mantra. Sound like you? Then you’re tailor-made for a role in operations. Careers in this field are as reliable as the people who fill them, from quality control to business operations strategist, materials manager, operations research analyst, and production planner, to name a few.
This is just a short list of jobs for MBA graduates. Consulting roles are also popular choices, and offer a unique ability to operate within a range of companies and organizations.
Consultants typically provide solutions to problems within an organization, offer professional advice and guidance, and assist with project and/or people management. If you dread being stuck in a daily 9-to-5 with the same company for years on end, consider independent business consulting.
So, what do most MBA graduates do?
Traditionally, MBA graduates continue to work in the business sector, often promoted to management or director roles post-graduation. MBAs are well-suited to strategy and leadership positions. 66% of corporate recruiters agree that graduates of business master's program have a fast-track to upper level positions.8
Non-traditional MBA jobs can run the gamut. Some MBA graduates manage non-profits. Others launch their own ventures. Still others open private law or medical practices. Engineers can leverage the soft skills an MBA program provides to move from a technical to a management role. Web developers and IT professionals can do the same.
“I was getting into more project management and leading those activities with key stakeholders when I decided to pursue an MBA. I wasn’t just wearing my quality engineer hat. I was leading those discussions and planning project execution. I wanted to further develop myself personally and my career.”
Can you make a lot of money with an MBA?
Heck yes, you can! A 2024 survey by the Graduate Management Admissions Council (GMAC)9 projected a median starting MBA jobs salary of $120k.
MBA grads not only see annual salaries of up to $50k more than those with a bachelor’s degree alone, they’re also on the fast-track for promotions. 57% of Iowa MBA graduates received a promotion during or after their program.
Keep calm & get paid: Which MBA job has the highest salary?
When it comes to earning top dollar for your MBA investment, the more illustrious the title, the better the paycheck. This list of high-paying careers is not all-inclusive, but demonstrates the broad spectrum of interesting well-paying jobs for MBA grads.10
Analysts
Operations Research Analyst - $85,659
Financial Quantitative Analyst - $120,781
Manager
Financial Planning Manager – $176,446
Management Consultant – $99,074
Medical & Health Services Manager – $133,928
Senior Product Manager – $133,928
Directors
Director of Finance – $175,731
IT Director – $136,901
Pharmaceutical Medical Director – $201,766
Marketing Director – $90,420
C-Suite
Chief Technology Officer (CTO) – $141,200
Chief Medical Officer (CMO) – $240,977
And … jackpot! Check out a few more MBA jobs that pay $200k per year:
Chief Financial Officer (CFO) – $258,900
Chief Executive Officer (CEO) – $897,916
Whose school rules? Which MBA has the highest salary?
For full-time MBA programs, the two programs with the highest MBA salary in the U.S. are Stanford University ($231,259) and The Wharton School at the University of Pennsylvania ($213,772). The total cost of a Wharton MBA clocks in at $169,660, while Stanford soars to $261,466, according to U.S. News & World Report.10
Once you factor in living expenses and fees, and you’ll dish out a hefty up-front cost to reap the long-term ROI of an Ivy-League credential.
But since full-time programs require you to quit your job and radically reorganize your life, let’s focus on the earning potential for graduates of a more flexible part-time program.
Part-time MBA program cost versus return is a bit more complicated to grasp, as many schools advertise their tuition on a “per unit” or “per course” basis. We did the math and put together a list that details total tuition costs for in-state students plus average salaries for top-ranked schools to make it easier for you to compare at a glance:13
Top Part-Time MBA Tuition & Salaries
US News Rank | Institution | Total Tuition | Expected Average Salary | Ratio |
|---|---|---|---|---|
| 1 (Tie) | Northwestern University (Kellogg) | $168,327.00 | $170,000.00 | 1.01:1 |
| 1 (Tie) | University of California, Berkeley (Haas) | $155,824.00 | $180,000.00 | 1.16:1 |
| 1 (Tie) | University of Chicago (Booth) | $170,280.00 | $155,000.00 | 0.91:1 |
| 4 | New York University (Stern) | $177,400.00 | $166,148.00 | 0.94:1 |
| 5 | University of California--Los Angeles (Anderson) | $171,192.00 | $142,800.00 | 0.83:1 |
| 6 | University of Texas--Austin (McCombs) | $130,200.00 | $141,685.00 | 1.09:1 |
| 7 | University of Michigan--Ann Arbor (Ross) | $120,000.00 | $170,000.00 | 1.42:1 |
| 8 | Ohio State University (Fisher) | $82,950.00 | $106,673.00 | 1.29:1 |
| 9 | University of Southern California (Marshall) | $145,280.00 | $144,442.00 | 0.99:1 |
| 10 (Tie) | Georgetown University (McDonough) | $162,469.00 | $146,033.00 | 0.9:1 |
| 10 (Tie) | Georgia Institute of Technology (Scheller) | $69,000.00 | $123,108.00 | 1.78:1 |
| 10 (Tie) | University of Minnesota--Twin Cities (Carlson) | $97,512.00 | $128,249.00 | 1.32:1 |
| 13 | Rice University (Jones) | $120,560.00 | $147,831.00 | 1.23:1 |
| 14 (Tie) | Emory University (Goizueta) | $89,989.00 | $153,868.00 | 1.71:1 |
| 14 (Tie) | The University of Texas at Dallas (Jindal) | $45,460.00 | $123,163.00 | 2.71:1 |
| 16 | Indiana University (Kelley) | $71,540.00 | $145,000.00 | 2.03:1 |
| 17 (Tie) | Boston College (Carroll) | $126,426.00 | $182,000.00 | 1.44:1 |
| 17 (Tie) | University of Washington (Foster) | $102,157.00 | $151,000.00 | 1.48:1 |
| 19 (Tie) | Santa Clara University (Leavey) | $89,390.00 | $122,000.00 | 1.36:1 |
| 19 (Tie) | University of Maryland--College Park (Smith) | $104,408.00 | $120,446.00 | 1.15:1 |
| 19 (Tie) | Wake Forest University | $74,970.00 | $120,000.00 | 1.6:1 |
| 22 | University of Iowa (Tippie) | $33,750.00 | $112,121.00 | 3.32:1 |
| 23 (Tie) | Rutgers University--Newark and New Brunswick | $67,475.00 | $103,278.00 | 1.53:1 |
| 23 (Tie) | University of California--Irvine (Merage) | $53,567.00 | $110,000.00 | 2.05:1 |
| 23 (Tie) | University of South Carolina (Moore) | $40,970.00 | $103,120.00 | 2.52:1 |
I just graduated with my bachelor’s degree. Is an MBA worth it with no work experience?
Not likely.
For starters, most reputable programs won’t offer admissions to students without at least a few years in the workforce. Additionally, in 2022, 49% of recruiters surveyed by GMAC11 cited a lack of work experience as the top reason they lack confidence in business school graduates.
Experience in the workforce adds critical context to your MBA education. It also makes you able to contribute intelligently to classroom discussions, identify real-world applications for what you learn, and understand the perspective of your classmates.
Keep in mind: the required work experience doesn’t have to be limited to a business role. Many professionals with experience in one field add an MBA to pivot into a brand-new industry.
Which MBA specialization is best in the future? Here’s the long view.
Adding a specific focus to your MBA is one way to stand out from other job applicants in a particular industry.
Specializations are available in the forms of certificates, dual degrees, and MBA concentrations. Some of the most popular (and in-demand) MBA specializations12 include general management, strategy, finance, and entrepreneurship.
However, business analytics skills are growing in demand with recruiters. Of those surveyed by GMAC,11 nine out of 10 planned to hire Master of Business Analytics students in 2022 (an increase of 13% over 2021 hires).
In Fall 2022, over 6% of Iowa MBA students added a Master’s in Business Analytics to their MBA program, and more than 5% are pursuing a Business Analytics Certificate along with their MBA.
“As an MBA, I knew I’d be more marketable and earn more money. And I was so excited when Iowa announced the business analytics program. This really is my specialty. The coursework in that program is something I do on a daily basis.”
Ready to seek out the long-term reward of an MBA?
Related articles
Still have questions?
Q: What are some common MBA specializations and how do they impact career opportunities?
A: MBA specializations can significantly influence your career path and salary potential. The Iowa MBA offers many concentrations including:
- Finance: Ideal for roles in investment banking or financial consulting.
- Marketing: Prepares you for careers in brand management or digital marketing.
- Business Analytics: Useful for using data to predict trends and measure success.
- Innovation: Supports starting your own business or bringing new ideas to your org.
- AI & Technology Management: Focuses on integrating and optimizing new technologies.
Q: How do MBA salaries vary by industry?
A: MBA salaries can differ widely by industry. Here are some examples:
- Consulting: Typically offers some of the highest starting salaries.
- Finance: Often features lucrative bonuses and high base salaries.
- Technology: Competitive salaries with stock options and bonuses.
- Healthcare: Growing demand leads to rising salaries in management roles.
- Non-Profit: Generally lower salaries but may offer rewarding work experiences.
Understanding these variations can help you choose a suitable career path.
Q: What skills are essential for MBA graduates entering the job market?
A: Key skills that MBA graduates should possess include:
- Analytical Skills: Ability to interpret data and make informed decisions.
- Leadership: Essential for managing teams and projects effectively.
- Communication: Important for clearly conveying ideas and strategies.
- Networking: Building relationships is crucial for career advancement.
- Strategic Thinking: Helps in long-term planning and competitive analysis.
Developing these skills can enhance job prospects and salary potential.
Q: What are the best networking strategies for MBA graduates?
A: Effective networking strategies for MBA graduates include:
- Alumni Connections: Leverage your school's alumni network for opportunities.
- Industry Events: Attend conferences and workshops to meet professionals.
- LinkedIn: Maintain an updated profile and engage with industry leaders.
- Informational Interviews: Reach out to professionals for career insights.
- Join Professional Groups: Participate in associations related to your field.
- Group Projects: Work in teams with your classmates to connect with other professionals on a similar path.
Q: How important is work experience before pursuing an MBA?
A: Work experience plays a crucial role in the MBA application process and future career. Consider the following:
- Real-World Insights: Experience enhances classroom learning and discussions.
- Stronger Applications: Relevant experience makes candidates more appealing.
- Networking Opportunities: Work experience connects students with professionals.
- Career Clarity: Helps candidates identify their interests and goals.
- Increased Salary Potential: Experienced candidates often command higher salaries.
Aim for 2-5 years of relevant experience before applying. The Iowa MBA requires 18 months of professional work experience to apply.
Q: What salary negotiation tips should MBA graduates keep in mind?
A: Salary negotiation is critical for MBA graduates. Here are some tips:
- Research: Know the industry salary standards for your role.
- Value Proposition: Clearly communicate your unique skills and experiences.
- Practice: Rehearse your negotiation conversation to build confidence.
- Be Flexible: Consider benefits and bonuses, not just base salary.
- Timing: Initiate discussions after receiving a job offer to leverage interest.
Q: What are the potential career paths for MBA graduates outside of traditional roles?A: MBA graduates can explore diverse career paths beyond traditional roles:
- Startups: Many choose to work in or create their own startups.
- Consulting: Provides opportunities in strategy and management consulting.
- Non-Profit Sector: Engaging roles in management or program leadership.
- Government: Positions in public administration and policy-making.
- Academia: Some may pursue teaching or research roles in business schools.
Hear from an Iowa MBA student on how the MBA will benefit her in the future.
Q: How can MBA graduates enhance their employability after graduation?
A: To enhance employability, MBA graduates should consider:
- Internships: Gain practical experience and industry exposure during studies.
- Certifications: Pursue relevant certifications to boost skill sets.
- Continuing Education: Stay updated on industry trends through workshops.
- Soft Skills Development: Focus on teamwork, communication, and adaptability.
- Engage in Projects: Participate in case competitions or consulting projects.
Sources
- S. Edinburgh, et al. "AIGAC 2019 MBA Applicant Survey." Association of International Graduate Admissions Consultants, Percept Research, 2019.
- “MBA Degree Salary: 2025 Guide.” Coursera, January 6, 2025.
- Dr. Michelle Wieser. “Experiences and Outcomes of the MBA by Gender and Race.” Forte Foundation Study, September 2021.
- Josephson, Amelia. “The Average Salary by Age in the U.S. – Are You Making What You Should Be?” SmartAsset-Nasdaq, March 13, 2023.
- Haan, Kathy. “Average Salary by Age in 2023.” Forbes, May 23, 2023.
- “Which Companies Hire the Most MBAs.” Business Because.
- “Master of Business Administration (MBA), Finance Degree.” Payscale.com.
- “Corporate Recruiters Survey – 2024 Summary Report.” Graduate Management Admissions Council, 2024.
- Salary sources:
- Sarah Wood. “6 Hot Jobs for MBA Graduates.” U.S. News & World Report, April 9, 2024.
- Martin Mascali. “13 of the Highest Paying Jobs for MBA Graduates to Pursue.” Monster.com.
- “Job Salaries By Industry .” Payscale.com.
- "Chief Executive Officer Salary in the United States.” Salary.com.
- Ilana Kowarski and Sarah Wood. “Find MBAs That Lead to Employment, High Salaries.” U.S. News & World Report, April 10, 2024.
- “Corporate Recruiters Survey – 2022 Summary Report.” Graduate Management Admissions Council, May 2022.
- “8 Common and In-Demand MBA Concentrations.” Coursera, June 15, 2023.
- “Best Part-Time MBA Programs.” U.S. News & World Report, 2024.