Which MBA Program Offers the Best ROI?

Among the important considerations for anyone enrolling for an MBA program is the return on investment (ROI),  which schools offer the best ROI along with the highest increase in salary and the time period it takes to recoup the investment.

The QS TopMBA.com Return on Investment Report uses data from more than 200 full-time MBA programs around the world to find answers to four main questions, namely, which school offers the best ROI, the length of time it takes for recouping the investment, the average salary after graduation and where would you get the best salary hike.

The report puts the average global 10-year ROI at $390,751. It looks at how long it would take the graduates to recoup tuition and forgone salary, based on their average post-graduation salaries.

In the top 20 dominated by the US, six European schools manage to find a place. The University of Hong Kong ranks in third place with $845,350. It is also the only institution outside of Europe or North America to figure in the list.

It says that the average global payback time is 51 months, a little over four years. Graduates from European schools have the quickest payback time of 39 months, most likely due to the shorter 1-year programs. MBAs in the UK are at an advantage with shorter courses and high salaries.

In comparison, the average payback period in North America is 55 months. However, graduates can take heart from the fact that salaries are the highest in the United States.

The University of Strathclyde in the UK tops the 20 institutions for the shortest payback period of just 18 months. Other schools include the Cranfield School of Management, Bath, Lancaster, and Liverpool and EDHEC Business School with campuses in Lille, Nice, Paris and London.

Additionally, qualifications taken in developing nations tend to have shorter payback periods, due to the lower cost of tuition.

While European schools rank high in the quickest MBA payback, the US takes the lead in the highest salaries. The only exception is Switzerland based IMD.

The elite M7 institutions comprising Harvard, Stanford GSB, Wharton, MIT Sloan, Kellogg, Chicago Booth and Columbia are the major players in this list, with other prestigious schools across the nation also featuring prominently.

Of these, Stanford offers the highest salary payback in the world, with an average post-graduation salary of $140,600. Globally, the average salary is $79,829 ($89,037 in North America; $73,271 in Europe; $63,948 in Asia-Pacific).

Students at the University of New South Wales’ Australian Graduate Stanford Graduate School of Business get the highest salary payback in the world, with an average post-graduation salary of $140,600.

Globally, the average salary is $79,829 ($89,037 in North America; $73,271 in Europe; $63,948 in Asia-Pacific). Students at the University of New South Wales’ Australian Graduate School of Management enjoy the highest post-MBA salaries in the Asia-Pacific.

However, it is not the elite institutions that provide the highest jump in salaries. Willamette University’s Atkinson Graduate School of Management students managed an average 223% salary hike followed by The University of Illinois at Urbana-Champaign is with 176% and the University of Connecticut with 171%.

While the global average salary uplift is around 66%, North America ranks highest for this metric with a 74% uplift. Europe offers a 57% uplift and Asia Pacific 56%.

When the ROI after 10 years, calculated on the basis of the program cost, including tuition and salary forgone besides the salary premium, how much more money the graduates would earn, is taken into consideration, Stanford tops the list with $1,023,150.

In the top 20 dominated by the US, six European schools manage to find a place. The University of Hong Kong ranks in third place with $845,350. It is also the only institution outside of Europe or North America to figure in the list.(Image Source:Google.com)