MBAs Cost More and Are Less Profitable as ROI Falls (bloomberg.com)
(Tuesday September 16, 2025 @11:21AM (msmash)
from the reality-check dept.)
- Reference: 0179281696
- News link: https://news.slashdot.org/story/25/09/16/0813250/mbas-cost-more-and-are-less-profitable-as-roi-falls
- Source link: https://www.bloomberg.com/news/articles/2025-09-16/mbas-cost-more-and-are-less-profitable-as-roi-falls
Getting an MBA in the US has gotten a [1]little more expensive and a little less profitable , according to a Bloomberg analysis of salary and tuition data. From the report:
> This year's update of Bloomberg's Business School ROI Calculator, based on surveys of more than 9,500 students and alumni, projects a typical return on investment of 12.3% a year for the decade after graduation. That's down from 13.3% last year. The S&P 500 index, by comparison, returned 14.6% over the decade ending Aug. 31.
>
> The main reason for the decline: This year's respondents reported 6.2% better pre-MBA salaries than last year's, while projected postdegree earnings increased only 1.7%. In other words, the MBA pay edge -- the compensation boost graduates get for the degree -- shrank. In the broader US workforce, the average high-skilled worker's earnings rose 4.7% in the year ended July 31, Federal Reserve data show.
>
> Other factors didn't help: The increase in pre-MBA salaries meant students were forgoing more income during their studies. Tuition and other expenses increased 2.4%, some of that financed with bigger loans at higher rates. In all, the typical total investment to get an MBA in the US rose 6.8%, to almost $300,000.
[1] https://www.bloomberg.com/news/articles/2025-09-16/mbas-cost-more-and-are-less-profitable-as-roi-falls
> This year's update of Bloomberg's Business School ROI Calculator, based on surveys of more than 9,500 students and alumni, projects a typical return on investment of 12.3% a year for the decade after graduation. That's down from 13.3% last year. The S&P 500 index, by comparison, returned 14.6% over the decade ending Aug. 31.
>
> The main reason for the decline: This year's respondents reported 6.2% better pre-MBA salaries than last year's, while projected postdegree earnings increased only 1.7%. In other words, the MBA pay edge -- the compensation boost graduates get for the degree -- shrank. In the broader US workforce, the average high-skilled worker's earnings rose 4.7% in the year ended July 31, Federal Reserve data show.
>
> Other factors didn't help: The increase in pre-MBA salaries meant students were forgoing more income during their studies. Tuition and other expenses increased 2.4%, some of that financed with bigger loans at higher rates. In all, the typical total investment to get an MBA in the US rose 6.8%, to almost $300,000.
[1] https://www.bloomberg.com/news/articles/2025-09-16/mbas-cost-more-and-are-less-profitable-as-roi-falls
Average values? (Score:3)
by Retired Chemist ( 5039029 )
I am not sure that these numbers are of any significance. The value of an MBA varies tremendously depending on the institution that you got it at. One from a big-name school is far more valuable than one from a local college, although there is no evidence that those who get the degrees from the big-name schools learn anything that gives more real value.
because its cheaper to get anAI (Score:2)
to say slash costs this financial year no matter how and devil take the years bottom line,