Is an MBA Worth It? Pros, Cons, and How to Decide

What is an MBA Program?

A Master's of Business Administration, otherwise known as an MBA, is typically a two-year full-time graduate degree in general business management. There are also one-year programs, part-time programs, executive MBAs, and other variations that students may consider. In all programs, students learn about a wide range of management skills, including business administration and finance, and usually have the opportunity to specialize. Most curriculums cover a wide range of subjects from accounting, applied statistics, business communication, entrepreneurship, business ethics, and other relevant subjects.

As an MBA admissions and executive coach with 18 years of experience in strategy and coaching, I’ve worked with hundreds of professionals – from Olympic athletes to executives at Google – who were considering whether business school was the right next step. As a Columbia Business School MBA and current MBA Admissions Interviewer, I know how transformative the degree can be, but also when it may not be the best fit.

In this guide, I’ll walk you through the real pros and cons of getting an MBA so you can decide if it aligns with your goals, background, and career vision.

Read: What is an MBA Degree?

Why Get an MBA?

Professionals gravitate towards an MBA when they want to further their education or improve their career, compensation, and job opportunities. Aspiring entrepreneurs will also learn the necessary leadership skills and mechanics of how to start a business.

During the first year of an MBA degree, students will typically focus on more general coursework as part of the program's core curriculum. This usually includes finance, accounting, marketing, communication, and other related foundational subjects. The second year is usually spent on a more diversified and personalized curriculum, through electives, internships, or global opportunities.

For more info on curriculum and elective structures, read: Not Every MBA Program is Made Equal–An Overview of the Program Structures of Top Business Schools.

The exact benefits of a business degree will differ depending on the individual's background, goals, and aspirations. Business school is not right for everyone. Some of the other common motivations for pursuing this graduate degree include:

• Expanding personal networks
• Preparing for a career transition
• Undecided on a career path within the business world and looking to explore
• Getting more career advancement opportunities (promotions, salary increases, etc.)
• Planning to start a business

Read: When to Get an MBA, When Not To – and How it Affects Your Chances of Getting In.

Full-Time, Part-Time, Online, and Executive MBA Programs

In order to make the most informed decision on whether a business school is right for you, it's important to look at the different kinds of programs, as they have different benefits and drawbacks.

Full-Time MBA

The traditional full-time, two-year program is the most expensive and immersive. It is best for students who can fully focus on studying for the two years needed to complete the degree and relocate to the business school. It requires the most adjustments and expenses, but also offers the most benefits; there is more time for networking, internships, a full course load, extracurriculars, etc.

Part-Time MBA

A part-time program is a good option for people who'd like to retain full-time employment while they complete their degree. It's more flexible and usually cheaper, but there is less time for the aforementioned benefits: networking, internships, and classes.

This is generally a good option for people who are already in their desired career path and would use the MBA to provide salary and role opportunities that require an advanced degree.

Online MBA

Similar to a part-time MBA in terms of its pros and cons, an online MBA can be beneficial for those looking to obtain the degree without sacrificing geographic location and employment, and who would benefit less from the networking and robust curriculum.

Executive MBA

An executive MBA program caters to professionals later in their careers who are typically already on the career path of their choice. The executives stay employed in their full-time careers and pursue their MBA during a modified schedule, which is typically evenings and/or weekends. Usually, their employer has provided permission to participate in the program and may even cover the cost. These programs are typically a bit shorter than full-time MBA programs and cater to the more advanced knowledge of the participants. This is a great option for someone who does not wish to forgo their salary during the graduate program nor relocate themselves or their family, while still creating opportunities for career and salary advancement.

Deferred MBA

As the newest type of MBA program, these are open to undergraduate students or graduate degree students without full-time work experience. Generally, students will apply in their senior year of college.

If admitted, they then defer enrollment for 2-5 years while they obtain full-time work experience, with their spot in the class saved.

When weighing the different pros and cons of business school, keep in mind the type of program that you're interested in. For example, with a full-time MBA program, you'll have to carefully consider the high tuition and time commitment as major factors. For part-time MBA programs and online MBA programs, time and finances are still a consideration, but less so.

For more information on the different types of degrees, see The Different Types of MBA Programs—and Which One is Right for You.

Admission Requirements

Let's briefly review the admission requirements of an MBA program. The most common requirements for the MBA application at the majority of business schools include:

• Bachelor's Degree
• Undergraduate Transcripts
• MBA Resume
• Letters of Recommendation
• Standardized Test Score (GMAT/GRE/EA)
• Essays
• TOEFL or IEFLTS (for international applicants)
• Application Fee
• Interview

Applications are submitted in different rounds so students can choose the best round for their schedule. Generally, for top American programs that have 3 rounds, it is recommended to apply in Round 1 or 2 because there are more spots available and therefore chances for admission are slightly higher. However, never rush your application if it will diminish its quality.

The Different Tiers of Business Schools

Not all MBA programs are created equal, and another important factor in deciding whether an MBA is worth it is knowing the tier of business school that you're aiming for, and the one you're likely to get into.

Tier 1: The M7 Programs

The best business schools in the world are often referred to as the "M7." These include Harvard Business School, Stanford GSB, University of Pennsylvania Wharton, Chicago Booth, Northwestern Kellogg, MIT Sloan, and Columbia Business School.

The acceptance rates for these programs typically lie between 8% to 33%, depending on the year and school. The average GPA and standardized test scores are competitive; for example, at Harvard Business School, the Class of 2026’s median GMAT score is 740 (based upon the old scoring system prior to the newest GMAT Focus exam); the median GRE score is 163 (each for both Quant and Verbal); and the average undergraduate GPA is 3.69.

Tier 2: The Top 25 Programs

The top 25 business schools include many great, competitive programs that offer a lot of the same benefits as the M7 without the selective acceptance rates. Though not quite as prestigious, they still provide tons of networking opportunities, work experience, internships, a robust curriculum, and a degree that will likely allow MBA graduates to find better jobs and higher salaries.

These schools' acceptance rates are typically between 20% to over 50%; still competitive, but slightly less so. For example, Duke Fuqua's Class of 2026 profile indicates:

• Middle 80% Undergraduate GPA: 3.17–3.89
• Middle 80% GMAT scores: 660–760
• Middle 80% GRE scores: 305–330 (Quant and Verbal combined)

See: T25 MBA Acceptance Rates, GPA, & Test Scores and The Top 25 MBA Programs—Acceptance Rates, Tuition, and More

Tier 3: Other Accredited MBA Programs

These schools, while not among the top-ranked, still offer MBA programs that provide some advantages. They are usually more affordable and have stronger regional networks. They also offer more online MBA programs and other flexible offerings. These programs typically have higher acceptance rates, with some schools admitting over 95% of applicants.

The Pros & Cons of Pursuing an MBA

Let's now go deeper into the pros and cons of this business degree. This list is comprehensive, but not exhaustive. Depending on your personal circumstances, some of these may not be applicable, and they will have different weights.

For example, if your company sponsors your MBA, price will not be a factor at all, but other factors still might be. Take this list as inspiration and make your own, taking into account the importance and relevance of each factor to your own unique personal and professional situation.

Pros

• Access to High-ROI Career Pathways – Top MBA programs unlock elite roles in consulting, private equity, venture capital, tech, and entrepreneurship. These pathways are often gated—you simply won’t get in the door without the credential. Post-MBA roles at firms like McKinsey, KKR, Bain, BCG, and Google are structured around MBA hiring channels.
• Significant Compensation Growth – The average post-MBA salary at top schools often exceeds $175K–$220K all-in. More importantly, an MBA accelerates your trajectory – you’re likely to jump two rungs up the ladder faster than peers without the degree. Over a lifetime, the delta is often in the millions, especially for career changers entering high-comp roles.
• Elite Network Access – This is arguably the most enduring value of the MBA. You're plugged into an alumni base that spans C-suites, venture funds, startups, and global orgs. The network becomes your unfair advantage for jobs, fundraising, hiring, partnerships, and advice.
• Skill Development with Strategic Depth – You’ll learn to think across functions: finance, strategy, marketing, ops, and leadership. A top MBA teaches not just business tools, but judgment, frameworks for decision-making, and how to navigate high-stakes ambiguity, critical if you want to run a team, company, or fund.
• Career Reset or Pivot – Want to switch industries, geographies, or functions? An MBA is a socially acceptable, high-signal way to do that. Whether you're moving from engineering to VC or education to strategy, the MBA serves as both a rebrand and a bridge.
• Entrepreneurial Infrastructure – Top programs offer startup accelerators, pre-seed funding, venture studio support, founder treks, and direct access to operator-turned-investors. Some schools even help you fundraise during the program. If you’re serious about building something, there’s no better launchpad.
• Brand Equity and Long-Term Optionality – A top-tier MBA (think HBS, GSB, Wharton, Booth, Kellogg, Sloan) is a long-term credibility marker. It gives you professional gravity, especially in boardrooms, fundraising rounds, and new industries, years after graduation.

Cons

• Cost (And Not Just Tuition) – Top MBA programs cost $200K+ when you factor in tuition, living expenses, travel, and lost income. The real cost includes everything from global immersion trips to conferences, recruiting events, and social buy-in. Even with scholarships, the opportunity cost, especially if you're already on an upward trajectory, can be steep.
• Admissions Barrier – Getting in is a full-time job in itself. You’ll need strong GMAT/GRE scores, a sharp narrative, standout work experience, and killer essays—plus glowing recommendations and a polished interview. It’s not just about your accomplishments—it’s about your ability to sell them with clarity.
• ROI Is Not Guaranteed – Not every MBA leads to a six-figure role or dream pivot. Outcomes vary by school, industry, and timing. Market downturns (like post-2022 tech layoffs) can shift demand overnight. If you enter with unclear goals or without a recruiting plan, you may struggle to capitalize on the investment.
• You Can Outgrow the Curriculum – Many MBA programs struggle to keep pace with real-time developments in AI, product management, and startup operating models. While foundational skills are timeless, fast-moving sectors like crypto, ML, or frontier tech may require supplemental learning outside the core curriculum.
• Brand Dilution Below the Top 20 – Outside the top ~25 programs, the MBA has diminishing signaling power. For example, an MBA from a local or unranked program may not unlock blue-chip jobs or elite networks. That doesn’t mean it’s not valuable, but the ROI calculus changes significantly.
• Time and Energy Tradeoff – Even full-time programs with generous breaks are intense. Between recruiting, coursework, clubs, and social pressure, you’ll be constantly on. If you’re balancing family, burnout, or side ventures, know that the MBA often takes more than it gives in the short term.

Read: How to Choose an MBA Program–The Discerning Student’s Guide and The Truth About Business School Rankings–and What it Means for You.

Post-MBA Employment & Salary Statistics

The primary motivation for most people considering business school is the career development and salary opportunities that a Master's in Business Administration offers. The specific way in which an MBA will affect your career path depends heavily on the industry, role, and professional level of the individual, as well as the macroeconomic environment and tier of business school.

To gauge how effective an MBA will be in positively impacting your career goals, here is what you should do:

1. Identify your target programs. Create a balanced list of MBA programs, including a few "safe" schools (where your profile exceeds the average accepted candidate), "target" schools (where your profile closely matches), and "reach" schools (where admission is more competitive).
2. Research their MBA employment reports. For each program on your list, download and review the most recent "MBA Employment Report" typically found on the school’s website. These documents are packed with valuable insights and you can find which schools more closely align to your desired industry and post-MBA goals.
   1. Use the reports to identify which industries and roles graduates typically enter. This will help you evaluate whether the program aligns with your career aspirations.
   2. Evaluate Salary and Bonus Data – Review starting salary and bonus figures to gauge the financial outcomes for graduates. Look for programs that deliver strong ROI based on your career goals.
3. Review the most common employers. Note the companies that frequently recruit from each program. If there are specific organizations you aspire to work for, prioritize schools with strong relationships with those employers.

For example, here are the employment statistics for several top programs: Stanford GSB (typically ranked #1) and the University of Berkeley Haas (typically ranked #10-12 depending upon the year and list).

Stanford GSB Employment Report Snapshot (as of March 2025)

• Received Job Offer: 88%
• Accepted Job Offer: 80%
• Median Base Salary Overall: $185,000
  1. Finance Median Base Salary: $200,000
  2. Tech Median Base Salary: $185,000
  3. Consulting Median Base Salary: $190,000
• Median Performance Bonus Overall: $50,000
• Median Signing Bonus Overall: $30,000
• Top 5 Industries:
  1. Finance: 37%
  2. Technology: 22%
  3. Consulting: 14%
  4. Health Care: 6%
  5. Media & Entertainment: 5%

See the full employment for more information here.

UC Berkeley Haas Employment Report Snapshot (as of March 2025)

• Received Job Offer: 86%
• Accepted Job Offer: 84%
• Median Base Salary: $160,000
• Top 5 Industries:
  1. Consulting: 25%
  2. Tech: 24%
  3. Finance: 16%
  4. Healthcare: 8%
  5. Energy: 6%

See the full employment for more information here.

So, Is an MBA Worth It?

As this article has shown, the question of whether an MBA is worth it is complicated and depends on many factors, primarily including the school you want to go to and your personal circumstances.

In a survey from 2021, the Graduate Management Admissions Council (GMAC) forecasted that MBA graduates would earn an average salary of $115,000 while those without MBAs would earn an average of $65,000-75,000. That same survey asked alumni of MBA programs their perspective on their degree.

Out of almost 5,000 respondents, 9/10 reported a positive ROI from their Master's of Business Administration. 70% reported their graduate business education as Excellent or Outstanding, and 87% agreed that their MBA improved their employability.

When deciding whether an MBA is right for you, we recommend asking yourself the following questions:

• What are my long-term goals? How does an MBA align with them? Am I targeting an industry in which an MBA is valued or necessary?
• What skills and knowledge am I hoping to gain? Will the MBA curriculum fill gaps in my expertise or enhance my abilities in areas like strategic thinking, leadership, and financial acumen?
• Can I afford the cost of business school? What is my expected ROI? What financial resources are available to me?
• What type of MBA program suits my needs? What are those programs' specific benefits and drawbacks?
• How important is the tier of business school to my goals? What schools can I realistically get into based on my undergraduate school brand, GPA, test scores, and existing work experience?
• Am I prepared for the intensity and demands of graduate school? Can I afford to dedicate those two years to school?
• Where do I want to live and work post-MBA?
• What are the employment rates and typical career paths of the graduates of my target programs?

An MBA program is likely worth it if… you're seeking to advance your career to managerial or executive levels within an industry like consulting or finance; pivot to a new industry or function; expand your professional network; or launch your own business, and you've calculated that the potential return on investment – both in terms of salary increase and career opportunities – outweighs the costs.

An MBA program is probably not worth it if… your career goals do not align with what the degree offers, or you can reach your professional objectives through alternative means that do not require the significant financial and time investment of an MBA.

Before diving into the MBA application process, it’s important for anyone interested to know their “why.” Graduate studies are a grueling process, but if students are able to follow a clear goal and remember their purpose, it will be easier to succeed.

For help deciding whether business school is the right step for you, reach out to me. I have over 18 years of experience helping students and career professionals navigate these decisions and am here to support you as well. Book a free intro call on my profile to get started.

Read:

• Not Every MBA Program is Made Equal–An Overview of the Program Structures of Top Business Schools
• Tier 1, Tier 2, vs. Tier 3 Business Schools
• The Top 5 Factors for Getting Into a Top Business School
• The Truth About Business School Rankings–and What It Means for You
• Part-Time vs. Full-Time MBA Programs: Pros, Cons, and How to Decide 

Is An MBA Worth It? – FAQs

What is a typical MBA career path?

• A typical MBA career path often involves progression into leadership and managerial roles across various industries, including finance, consulting, technology, healthcare, and entrepreneurship. MBA graduates may start as managers, consultants, or analysts, advancing over time to executive positions such as CEO, CFO, or business owner.

Will an MBA help with landing a job?

• Yes, an MBA can help with landing a job by equipping candidates with valuable skills, expanding their professional network, and enhancing their resume. Graduates from reputable programs often benefit from on-campus recruitment and alumni networks, leading to higher employment rates.

Can you be successful without an MBA?

• Absolutely, many individuals achieve professional success without an MBA through experience, skill development, networking, and entrepreneurship. Success depends on personal drive, industry knowledge, and the ability to capitalize on opportunities.

What can I do instead of an MBA?

• Instead of an MBA, individuals can pursue professional certifications (e.g., PMP, CFA), specialized master's degrees (e.g., Master of Finance, Master of Science in Data Analytics), networking events, workshops, and online courses to gain skills and advance their careers.

Is an MBA actually useful?

• Yes, an MBA is actually useful for those looking to advance their career, transition into a new industry, or enhance their leadership and business management skills. It offers valuable networking opportunities, a broadened perspective on global business practices, and often a significant ROI through higher salary potential and career advancement. However, it will not be useful for everyone. It's important to consider your personal circumstances and goals to make this decision for yourself.

What are the disadvantages of an MBA?

• The disadvantages of an MBA include the high cost of tuition, potential student debt, the opportunity cost of time away from the workforce, and no guarantee of job placement. The benefits can also vary depending on the prestige of the program and the industry in which one seeks employment.

How much will an MBA increase my salary?

• According to GMAC, an MBA can significantly boost your salary, with graduates often seeing a median starting salary of around $115,000. The exact amount can vary widely based on industry, geographic location, and the prestige of the MBA program. On average, most MBA graduates from top-tier M7 programs tend to see the highest salary boosts.