If you had doubts about the return on investment (ROI) of an international MBA, you don’t have to worry anymore. GMAC ( the owner of the GMAT) has released an alumni perspectives study which should address all of your concerns.

At a time when critics are questioning both the cost and value of higher education, this report by the GMAC makes the strongest case yet for getting an international MBA or another master’s degree in business. Furthermore, the conclusion of the report relating to post-degree compensation is conservative because it does not take into account bonuses, stock awards, or other perks commonly given to international MBA graduates and business executives.

First the good stuff :

  • The report concludes that professionals with a graduate degree in business on their resumes earn between $1 million to $500,000 more during a 20-year career than colleagues who did not get an MBA or other advanced business degree.
  • GMAC said that while the ROI of a full-time two-year MBA fluctuates with economic cycles, return-on-investment has remained positive three years after graduation in 19 of the past 20 years. The only exception, 1991 to 1993, coincided with the end of a recession.
  • More recently, ROI began to improve until the Great Recession, when it remained stagnant, hovering near 40% in the three years between 2008 and 2012.
  • More than four in five alumni are satisfied that their education met their investment expectations, an extraordinary degree of satisfaction given the “flattening of ROI” in more recent years.
  • The survey also found that the majority of graduate business school alumni find their education to be rewarding personally (93% of respondents), professionally (89%), and financially (75%). Nearly all (95%) rate their degree as a good, excellent, or outstanding value.

Calculating the ROI of a business degree – table sourced from GMAC

GMAT programs

Leave a Comment

© 2014 GMAT Blog, inc. All rights reserved.


Social Media