How Much More Money Can You Make With an MBA?

There may be a few different reasons for one wanting to pursue an MBA, but perhaps one for the biggest reasons is to increase annual salary. While the path to attain an MBA itself is somewhat expensive, the increase in income can more than make up for it. An MBA canwonders to open up so many more career opportunities that a standard BA simply cannot do.

 

The question is, how much more money can be made with an MBA? Is it worth investing your time and money at the end of the day to achieve this prestigious degree? Obviously, every situation is different. Each educational facility, program, and job will impact how much you are ultimately paid. To find out more, go here.

 

Having said that, the average pay with just one year of working experience following graduation is approximately $51,396. For those with one to four years of working experience, the average salary is about $60,541. Those with at least 10 years of experience made an average income of about $98,800 per year. Clearly, work experience plays a huge role in the amount of money that stands to be made as an MBA graduate.

 

But as stated earlier, there are plenty of other factors that can sway this dollar figure in either direction in addition to work experience, including the following:

 

Business School Reputation – The exact school and its ranking can affect how much employers are willing to pay you. Graduates from schools with a high name recognition – such as Harvard Business School – will typically earn higher salaries. In 2010, the median base salary for graduates of Harvard was $110,000.

 

Type of MBA Degree – MBA’s aren’t all the same. The type affects your salary. The different areas include finance, accounting, HR, entrepreneurship, and more. The more specialized your particular field, the more money you will probably be able to command.

 

Your Networks – Many times it’s all about who you know. If you can’t network effectively, it doesn’t’ matter how prestigious your MBA degree is. That’s why it’s important to be able to meet other professionals in your field at panels, internships, or job fairs.

 

Geographical Location – Different parts of the country typically offer different salary ranges. For instance, California has the highest paid MBA graduates in the country with a median salary of $99,947.

 

The Bottom Line

 

Obtaining an MBA can certainly command a higher salary compared to a BA from business school. However, there are plenty of factors that influence this amount, including experience, specialization, location, business school prestige, and networking.