Most MBA applicants do not evaluate the Return Of Investment (ROI) of their education properly. Many of them take for granted that they will get a six-figure job after graduation, as if the average wages published by the business school are guaranteed. They are not, and the data the statistics show can be easily manipulated.
To analyze the ROI of your education investment, you should calculate the value of the money you spend on the MBA program over time, including the risk of not finding a good job immediately and of not fulfilling your salary expectations. Additionally, you should not forget that you would not have a static career if you had not gotten an MBA. Your salary would have increased anyway, as a consequence of your career’s natural evolution. Any investment should be evaluated only in contrast with its alternative, so you should only take into account the differential income increase you expect by pursuing an MBA program.
Use the calculator below to estimate the Net Present Value (NPV) of your education investment.