The Harvard Business School (HBS) MBA remains one of the most prestigious degrees in the world and also accepts one of the largest percentage of international students. But with rising costs as seen in MBA cost increase trends, and a competitive job market (base salary peaking at $190,000 in Consulting and $175,000 in Finance for most top MBA graduates), prospective students often wonder about the return on investment (ROI).
MBA applicants should calculate the return on investment before choosing one program over the other. We advise against shortlisting schools purely based on ROI, but when it comes to choosing your dream school, and say if you are stuck with two equally good ones – Harvard and Stanford, use Net Present Value.
In this illustration on calculating Return on investment for an MBA program, we cover:
We falsely put hope in our intuitions, or in plain English “fuzzy logic reached through biases, our limited life experiences, and exposure to Business School’s marketing.” Life-changing decisions can falter with this limiting method.
Instead of relying on intuition, let us go systematically through the attributes that are important to you.
The 2012 Alumni Perspectives GMAC report gives us insight into the real return on investment on MBA programs – Salary, Job Satisfaction and Current Employment.
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