How to measure the ROI of an MBA degree?

How to measure the ROI of an MBA degree?


An MBA degree in India is a great option to kick start your career growth. It gives you an edge over others as it prepares you to work in the professional world beforehand. But this doesn’t come easy as fee structure of many top MBA colleges are high. So, It’s important to have an idea of ROI of your MBA degree. Having a clear idea of your MBA degree assures you that your investment in MBA is not a wastage of money.

Calculate ROI of MBA degree with these easy steps:

  1. What’s your current salary (if you are working)
  2. Calculate the full cost ( fees as well as other expenses ) of your MBA program.
  3. Calculate opportunity cost. This is the salary you might be getting if you will not do your MBA degree in that time period. You can also include pay rise or any promotion you are expecting.
  4. Finally, list your expected post MBA-salary. You can easily get this by analysing placement stats of your MBA college you are thinking to get into.

Now, you have this information, you can calculate your MBA ROI.

Here, see the example:

Current salary (Pre-MBA)- 5 lakhs per year

Expenses during your MBA degree- 14 lakhs for two year

Opportunity cost of two years- 12 lakhs

Expected Post MBA salary: 7 lakhs per year

This clearly indicates that your MBA expenses will be paid off in two years and after that you can enjoy your high raise salary.

Read: How to maximize the ROI of your MBA degree?

Get into one of the top MBA colleges in India to maximize ROI of your MBA degree. NDIM is one of such top MBA college that has maintained its reputation for consistent performance by achieving 100% placement for all eligible students in the recent year. Its top recruiters includes accenture,, Amul, Axis Bank, Avon, Decathlon, Godrej, Honeywell and many more.

View the full list of recruiters here.