How Much Can I Earn After I Get an MBA?
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The 2024 Graduate Management Admissions Council (GMAC) Corporate Recruiters Survey projected that 2024 MBA graduates will earn a median starting salary of $120,000.
However, multiple factors affect earning potential for workers with MBAs. For instance, different locations pay different wages, especially when comparing global regions: While the GMAC report projected the median starting salary for an MBA graduate in the United States will be $120,000, they also projected that Western Europe’s MBA graduates will see a median starting salary of $54,350. In East and Southeast Asia, that number falls to $35,000.
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What Factors Influence an MBA’s Salary?
Many factors influence the salary potential of recent MBA graduates, including business school prestige, program type, and your MBA specialization. Typically, graduates with work experience earn higher salaries than those without experience, and professionals with executive MBAs report higher salaries than those with traditional MBAs.
Below, we illustrate the range in average MBA salaries to demonstrate how specific factors impact earning potential.
Average MBA Salaries Based on Select Criteria
$151,000
Graduates of the Michael G. Foster School of Business at the University of Washington (2023)
$109,870
Management consultant with 5-9 years’ experience (2024)
$106,360
Finance manager with 5-9 years’ experience (2024)
$168,710
MBA graduates in New York, NY (2024)
$163,700
MBA graduates in Texas (2024)
$239,310
EMBA graduates (2023)
$98,000
With a concentration in sustainability (2024)
$156,580
Marketing manager (2023)
Type of MBA
Business schools offer a variety of MBA options. Students can enroll in a full-time traditional MBA program, an executive MBA, a part-time MBA, or an accelerated one-year MBA. A traditional MBA typically takes two years, while a part-time MBA offers the same curriculum over a longer period — often 3-4 years. Accelerated MBA programs may offer fewer specialization options.
The type of your MBA can influence salary expectations: Executive MBA programs admit experienced business leaders seeking advancement to top decision-making roles, so graduates from these programs often earn higher wages than workers who pursue other kinds of MBAs.
Area of Specialization
MBA students can specialize in a variety of areas, including finance, entrepreneurship, healthcare management, and sustainability. These concentrations require learners to complete a group of courses related to their chosen subfield, and some schools may also offer specialization-specific internship opportunities. Concentrations help prepare graduates for focused career paths.
The MBA specialization you choose also influences your earning potential. MBA students who choose specializations in high-paying areas like healthcare and technology may earn more than others.
Choice of School
The school you attend can increase your earning potential, as some programs carry name-brand recognition among employers. For instance, according to Statista data from 2022, MBA graduates from Harvard University’s MBA program earned an average starting salary and sign-on bonus of $194,720. Graduates of New York University’s Leonard N. Stern School of Business made $191,770 on average, while workers with MBAs from the University of Chicago Booth School of Business earned an average $191,180.
Geographic Location
MBA salary can vary by location, with some states offering average MBA salaries nearly $80,000 higher than others.
As of July 2024, ZipRecruiter lists Washington as the state with the highest average MBA salary of $200,830. Meanwhile, MBA degree-holders in Florida earn an average of $121,110. Some cities also pay higher average salaries than others. For example, the average MBA salary in Los Angeles, California is $192,620, compared to $144,990 in Wichita, Kansas.
Work Experience
As business professionals gain experience, their salaries tend to increase. Over time, MBA graduates often move into executive and leadership roles that yield higher pay.
We referenced Payscale data from July 2024 to illustrate potential experience-based salary differences. Financial analysts make an average starting salary of $60,650, but with 10-19 years of experience, this rises to $79,380. Meanwhile, senior financial analysts earn an average $74,080 with under a year of experience, while workers with 10-19 years of experience average $94,830.
Top-le5vel executives, who typically have several years of experience, can make even higher wages. For example, chief financial officers with less than one year of experience earn an average of $97,010, but those with 10-19 years of experience make $153,170 on average.
Industry and Role
Some pay disparity for MBA graduates exists among different industries and roles within those industries.
For instance, legal and professional services, consulting, and financial services yield the highest median salaries of $215,000, $190,000, and $175,000, respectively, according to data from the Wharton School of the University of Pennsylvania. Within the financial services industry, hedge fund investment professionals earn a median salary of $212,500, while investment management professionals earn a median salary of $177,500.
A Real MBA Grad on Salary Expectations
TBS sits down with MBA grad, Paige Arnof-Fenn, to discuss salary expectations and negotiation for anyone considering an MBA.
Q: Did you find that the job market supported your salary expectations after getting an MBA?
I know having an MBA helped my resume stand out to get interviews and gave me credibility as an entrepreneur. It also put me in a higher salary bracket, so it was worth doing for sure.
Q: What advice do you have for someone considering an MBA?
I do have a bias for going to the very best school you can get into. It is a huge opportunity cost to go back for a degree, so it has to be worth your while. By far the most valuable thing about it were the friends I made and the network I built.
Q: Do you have any advice for people negotiating the salary on a job offer after getting an MBA?
Do your homework and be realistic. You may need to get creative and look at perks, vacation, stock options, benefits, etc. and consider total compensation beyond just salary, since everyone values the pieces differently today. Five days per week on site vs. hybrid vs. virtual flexibility may have different salary requirements.
Paige Arnof-Fenn is the founder and CEO of global marketing and digital branding firm Mavens & Moguls, based in Cambridge, Massachusetts. Her clients include Microsoft, Virgin, The New York Times Company, Colgate, venture-backed startups, and nonprofit organizations. She graduated from Stanford University and Harvard Business School. Arnof-Fenn is also a popular speaker and columnist who has written for Entrepreneur and Forbes.
Frequently Asked Questions About MBA Salaries
What Is the Starting Salary of an MBA?
The projected median starting salary for MBA graduates in the United States is $120,000, according to a 2024 GMAC survey. Your actual earning potential varies based on your industry, location, role, and previous experience.
Will an MBA Increase My Salary?
Many professionals earn pay increases after finishing their MBA, which can boost starting salaries: According to 2024 GMAC projections, MBA-holders can earn salaries almost $50,000 higher than average wages for workers who hold only a bachelor’s degree.
How Much Can I Make With an MBA Degree?
Salaries can vary significantly by industry, role, experience, and location. For example, Payscale data from July 2024 notes an average MBA salary of $98,000 per year, but certain roles, like finance directors and chief financial officers, earn average wages ranging from $120,000 to almost $150,000. MBA graduates in New York earn an average of $179,210 annually, while Missouri MBA-holders earn an average of $140,550, according to ZipRecruiter.
Should I Invest in an MBA?
Before enrolling in an MBA program, prospective applicants should consider the investments these degrees require. In addition to the cost of an MBA, graduate school can mean time away from work and higher student loan debt. However, the long-term benefits of an MBA may outweigh those costs.
For example, an MBA opens career doors and often leads to a higher earning potential. Many professionals find these opportunities outweigh the costs. In addition, MBA students can benefit from many financial aid opportunities, including MBA scholarships. Business graduate students also qualify for federal financial aid.
