Earning a master of business administration degree can come with a hefty price tag, with top schools ranging from $50,000 to $80,000 per year. For professionals seeking to advance their careers, many may wonder: Is an MBA worth it?
The short answer is yes, an MBA is almost always worth pursuing, says Martin Van Der Werf, the director of editorial and education policy at the Georgetown University Center on Education and the Workforce.
“Generally, taking out a loan is worth it, because your earnings far exceed the debt payments,” he tells CNBC Make It. “If you earn the degree and then are able to get a good job, it is generally worth it.”
Van Der Werf’s position in favor of MBAs is informed by a 2022 study led by a team of researchers at Georgetown University. The report investigated the economic value of the most popular degree programs, ranking the value of 5,500 business programs at more than 1,700 colleges. The study finds that MBA degrees lead to higher net earnings for working professionals, even when debt is factored into the equation.
MBA degrees uniquely position professionals to take on new career positions and boost their overall pay, Van Der Werf says. “The only caveat is you [have to] finish the degree. If you take out the loans and don’t finish, you are still stuck with the debt even without the degree.”
“It applies to just about any path that you want to take in business, so it can lead to a pathway in anything from finance to accounting to hospitality management to human resources,” he adds.
For those looking to pursue advanced business studies, here are the top 10 MBA programs that pay off the most right away. Programs were ranked based on graduates’ median annual net earnings two years post-graduation, after debt payments.
Some well-known schools, such as Harvard Business School, didn’t earn top spots in the ranking, due to low median earnings. However, since the study only measures early-career earnings, it’s possible graduates earn more later on.
1. The University of Pennsylvania: Wharton School of Business
- Annual earnings net of debt payment: $165,600
- Monthly earnings: $14,300
- Monthly debt payments: $490
2. Dartmouth College: Tuck School of Business
- Annual earnings net of debt payment: $162,000
- Monthly earnings: $13,900
- Monthly debt payments: $460
3. Massachusetts Institute of Technology: Sloan School of Management
- Annual earnings net of debt payment: $159,600
- Monthly earnings: $13,800
- Monthly debt payments: $460
4. Columbia University: Columbia Business School
- Annual earnings net of debt payment: $157,200
- Monthly earnings: $13,800
- Monthly debt payments: $750
5. Stanford University: Stanford Graduate School of Business
- Annual earnings net of debt payment: $156,000
- Monthly earnings: $13,600
- Monthly debt payments: $580
6. University of Chicago: Booth School of Business
- Annual earnings net of debt payment: $148,800
- Monthly earnings: $13,300
- Monthly debt payments: $900
7. TIE: Yale University: Yale School of Management
- Annual earnings net of debt payment: $140,400
- Monthly earnings: $12,300
- Monthly debt payments: $660
7. TIE: University of Virginia — Main Campus: Darden School of Business
- Annual earnings net of debt payment: $140,400
- Monthly earnings: $12,500
- Monthly debt payments: $760
9. Duke University: Fuqua School of Business
- Annual earnings net of debt payment: $135,600
- Monthly earnings: $12,300
- Monthly debt payments: $1,070
10. University of California — Los Angeles: Anderson School of Management
- Annual earnings net of debt payment: $130,800
- Monthly earnings: $12,000
- Monthly debt payments: $1,050
Generally, ‘think twice’ before investing in a master’s degree
When considering other master