MBA ROI calculator
Enter what the degree costs, what you earn now and what you expect to earn after. The calculator returns the payback period and the cumulative ten-year difference between going and not going. Pick a school to load its published tuition and median salary.
Illustration only. Salary figures are base pay; bonuses, equity, loan interest and inflation are not modelled. Not financial advice.
How to use the result
Payback under three years usually means the degree is a clear financial win for the career path you modelled. Three to six years is typical for people moving into consulting, finance or technology from mid-paying roles. Beyond that, the decision rests on things the calculator cannot see: the network, a career switch that is otherwise closed to you, or a required credential for the role you want.
Run it with the salary of the job you would realistically get, not the school's headline median. Employment reports break salaries out by industry and function, and the gap between consulting and non-profit pay at the same school is large. The guide on whether an MBA is worth it explains how to pick those inputs, and the cost guide covers what belongs in the living-costs line.
Frequently asked questions
How is the MBA payback period calculated?
Total cost is two years (or the program length you set) of tuition and living costs plus the after-tax salary you give up while studying, minus any scholarship. Annual gain is the difference between your expected post-MBA salary and the salary you would have earned without the degree, after tax. Payback is total cost divided by annual gain, with salary growth applied each year.
Should I count living costs as part of the cost of an MBA?
Only the portion above what you would spend anyway. If you would pay rent regardless, the real cost is the difference between your current living costs and the school's cost-of-attendance budget. The calculator lets you set living costs to zero if you prefer to count tuition and lost salary only.
What is a typical MBA payback period?
It depends almost entirely on the salary jump. Career switchers entering consulting or finance from lower-paying fields often see payback in a few years; people already earning close to post-MBA levels can take much longer. Model your own numbers rather than relying on an average.
Does the calculator include signing bonuses or equity?
No. It uses base salary only, which is what schools report as the median. Add a one-time bonus to the "Scholarship or other offsets" field if you want to include it.