How Much Can I Earn After I Get an MBA?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.