Is the sacrifice worth the salary bump? Here’s the lowdown on your prospects for an increase, now and in the future.
Can you make six figures with an MBA? The numbers don’t lie.
For professionals with an MBA degree, six-figure salaries are well within reach. The latest Graduate Management Admissions Council (GMAC)1 survey anticipates a median MBA starting salary in the USA of $120k per year.
Not only are there a wealth of well-paying jobs for those with an MBA degree, Coursera’s 2025 Salary Guide4 showed that the average salary for MBA graduates over time grew between 7 and 32%.
According to a 2021 Forte Foundation study3 the average annual MBA salary after five years averaged approximately $142k for women and $152 for men, while the average MBA salary after 10 years ranged from $179k to $242k for women and men, respectively.
Some of the most sought-after six-figure careers2 include:
Managers:
Financial Planning Manager – $175,446
Medical & Health Services Manager – $104,830
Senior Product Manager – $133,928
Directors:
Director of Finance – $175,731
IT Director – $136,901
Pharmaceutical Medical Director – $201,766
C-Suite:
Chief Technology Officer (CTO) – $141,200
Chief Medical Officer (CMO) – $240,977
“The MBA opens doors to many industries and many fields. I don’t think I could transition from education to IT without having an MBA on my resume.”
Benefits of an MBA degree to a company
- Which MBA field has highest salary?
- What careers can you pursue with an MBA?
- How much does an MBA increase your salary?
Fly high or fall hard: Are MBA starting salaries soaring?
The evidence that MBA salaries are on the rise is undeniable. Coursera’s Salary Guide4 reports that MBA graduates earn up to $50k more than those with just a bachelor’s degree.
Even more impressive: Poets & Quants noted a recent survey5 of thousands of MBA grads showed a remarkable salary bump of $85,000. While these numbers will be impacted by where you work, where you live, and which school you attended, the fact is an MBA is extremely likely to boost your bottom line.
Beyond an increase in annual pay, MBA graduates looking to get promoted also see a significant advantage. In their 2022 survey, GMAC6 reported that 56% of MBA grads who wanted to receive a promotion earned one. (Fun fact: Over 56% of Iowa MBA graduates were promoted during or after their program.)
"What I've seen is that MBA graduates typically earn more than their non-MBA counterparts, and they tend to do so earlier in their careers."
What is the average return on an MBA?
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.7 And tuition alone doesn't cover the full cost of an Ivy League degree: These figures don't include living expenses or fees.
Part-time programs are growing in popularity around the world, and are likely a better fit for working parents and professionals who need to remain in their job while returning to school.
Does an MBA get you a higher salary? To visualize the return on your investment, we took a look at the tuition versus average MBA starting salary by school for the top 25 part-time programs, as ranked by U.S. News & World Report:8
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 |
The University of Iowa’s Iowa MBA, currently ranked #22 in the nation, has a total tuition of $33,750 and an average salary of $112,121.
As you debate whether going for an MBA is the right move for you, salary benefits should be a key consideration. But don’t forget to also take into account how you’ll grow your network, build a vast understanding of business as a whole, and dive deep into the topics that most interest you.
There’s more than just a salary benefit to earning you’re MBA—but for those driven by the bottom line, an MBA could be just what you’re looking for.
Ready to learn more about the ROI of the Iowa MBA?
Related articles
Still have questions?
Q: What factors influence the salary increase after earning an MBA?
A: Several factors can impact the salary increase you might see after obtaining an MBA, including:
- Your previous experience and salary level
- The prestige of the institution where you earned your MBA
- Your chosen specialization or concentration within the MBA program
- The industry you enter after graduation
- Geographic location and market demand for MBA graduates
Q: What are the best MBA specializations for maximizing salary?
A: Certain MBA specializations tend to offer higher salary potential. Some of the top choices include:
- Finance
- Information Technology Management
- Marketing
- Healthcare Management
- Supply Chain Management
Choosing the right specialization can significantly influence your earning potential.
Q: How does the ROI of an MBA compare to other graduate degrees?
A: The ROI of an MBA often surpasses that of other graduate degrees, thanks to higher starting salaries and career advancement opportunities. Factors to consider include:
- Average salary increase post-graduation
- Job placement rates
- Networking opportunities provided by the program
- Industry demand for MBA graduates
It's essential to evaluate these aspects when considering your options.
Q: How long does it typically take to see a return on investment for an MBA?
A: The time it takes to see a return on investment for an MBA can vary, but typically it ranges from 3 to 5 years. Factors that affect this timeline include:
- Your initial salary
- Post-MBA salary increase
- The cost of the MBA program
- Career progression speed
Hear from one Iowa MBA student who saw a rapid return on her investment.
Q: What are common career paths for MBA graduates?
A: MBA graduates have a wide array of career paths available to them, including:
- Management Consultant
- Financial Analyst
- Marketing Manager
- Operations Manager
- Entrepreneur/Business Owner
Q: How can networking enhance the salary potential of MBA graduates?
A: Networking plays a crucial role in enhancing salary potential. Effective networking can lead to:
- Job opportunities through referrals
- Access to industry insights and trends
- Mentorship opportunities
- Partnerships for entrepreneurial ventures
Building a strong network can significantly influence career advancement.
Q: What are the risks of pursuing an MBA for salary increase?A: Pursuing an MBA carries certain risks, including:
- High financial cost and potential student debt
- Time commitment that may delay career progression
- Uncertainty about job market conditions post-graduation
- Possible underemployment if the degree doesn't meet expectations
A Tippie expert explains a few of the challenges of going for your MBA.
Sources
- Andrew Walker, et al. "Corporate Recruiters Survey: 2024 Summary Report." Graduate Management Admission Council, June 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.
- Dr. Michelle Wieser. “Experiences and Outcomes of the MBA by Gender and Race.” Forte Foundation Study, September 2021.
- "MBA Degree Salary: 2025 Guide." Coursera, January 6, 2025.
- Byrne, John A. “The MBA Bump: MBA Grads Now Get an $85k Bump Over Pre-MBA Pay.” Poets & Quants, March 2023.
- “Corporate Recruiters Survey – 2022 Summary Report.” Graduate Management Admissions Council, May 2022.
- Ilana Kowarski and Sarah Wood. “Find MBAs That Lead to Employment, High Salaries.” U.S. News & World Report, April 10, 2024.
- “Best Part-Time MBA Programs.” U.S. News & World Report, 2024.