What is MBA Return on Investment (ROI)?
Before choosing an MBA college, it is very important to know the ROI of degree obtained from that college. Read below to know what is MBA ROI, how it is calculated and what impact it has on your career. Also get the list of college for MBA with highest ROI.
What is MBA ROI?
What is MBA ROI? It is important for every management aspirant to know MBA ROI, so that they can choose the right college for pursing the course. Today, MBA is one of the most popular professional degree across the world for its lucrative career trajectory and handsome pay packages. However, management programme is in itself an expensive affair. The MBA course fee at a college with good infrastructure and faculty is minimum INR 10 lakh. The MBA fee goes up to as high as 30 lakhs+.
Discover top MBA colleges explored by similar minds
Students like you who showed interest in this article are also exploring the following colleges
Want better recommendations?
There is a 90% more chance of getting best college recommendations by sharing preferences.While on an average each student spent nearly Rs 7-10 lakh on a two-year MBA programme, the salary offered after the course does not always match the investment. A majority of MBA graduates have difficulty in finding jobs because salary offered to them is not enough to repay education loan they had taken for the programme.
Q: Is FMS Delhi hard to get?
Q: How is the post-MBA life for MBA graduates from top MBA institutions like FMS, XLRI, MDI, IIM Mumbai, SP Jain, and JBIMS?
The rewards of life post-MBA can be substantial for graduates from renowned institutions such as FMS, XLRI, MDI, IIM Mumbai, SP Jain, and JBIMS. With their impressive qualifications, graduates from these top-notch B-schools are highly coveted by prestigious companies in diverse industries and can expect lucrative job offers from some of the leading recruiters in the market. Compared to the past, the job prospects for business school alumni are much more promising, with MBA degree holders having ample opportunities to explore various career paths. Based on their strengths and interests, MBA graduates can find themselves working in strategy, product management, business development, finance, operations, or human resources, among other fields.
Q: Is it worth doing Executive MBA from IIM Kozhikode?
IIM Kozhikode offers a two-year Executive Post Graduate Programme in Executive Management (EPGP), which is also popular as E-MBA. Candidates with some experience can gain a lot of benefits by pursuing MBA from IIM Kozhikode. It is one of the top Management institutes of the country. Along with the experienced faculty, candidates also get great exposure by studying in an IIM. For the Management category courses, IIM Kozhikode has been ranked on number 3 under the top 100 colleges of Managemen in India by NIRF. At the completion of the course, candidates will receive a degee of MBA from reputed IIM Kozhikode. The institute has received Global recognition from AMBA, EQUIS and Business Incubator and Entrepreneurship Centre support through IIMK LIVE.
Also Read:
What is MBA ROI: How to calculate best ROI for MBA?
The right way to calculate the MBA ROI i. e. Return on Investment, of an MBA degree is to estimate the annual increase in salary and figuring out how many years will it take to recover the student loan/ investment through salary increases over a period of 10 years. The MBA Return on Investment calculation should also take into account pre-MBA and post-MBA work experience, EMIs, market conditions and so on.
The formula for ROI can be understood as: (profit minus cost) / cost.
Best ROI on MBA can be considered the one, in which a candidate can get the amount invested in the shortest time from their salary/job secured on the basis of the degree. While, comparing ROI in an MBA programme with salary offered in campus placements, does not provide a correct picture, it nonetheless gives an idea of the MBA ROI.
Q: Is MDI Gurgaon good for MBA?
Yes, MDI Gurgaon is good for pursuing PGDM courses. It has been ranked #11 under the “Management” category by the National Institutional Ranking Framework (NIRF) 2024 rankings. It also provides placement support to the candidates. Many industry giants participate in its placement drive. Some of the companies that participate in the campus placements are Adidas, Godrej, Pidilite, Amazon, American Express, EY and Deloitte. The highest and average package offered in the 2024 placements stood at INR 63.3 LPA and INR 25.5 LPA, respectively.
Q: Why choose IIM Bangalore executive MBA course?
With an average package of INR 33.07 LPA and an NIRF ranking of 2 for its Management courses, E-MBA from IIMs is considered one of the best choices for working professionals who want to improve their knowledge and education level by pursuing a Management degree. Additionally, IIM Bangalore has seen an improving trend in the average package over the years. In 2022, the average package stood at INR 30.09 LPA and INR 26.08 LPA in 2021.
Factors affecting MBA ROI
There are some factors that may affect MBA ROI. The profitability of an MBA programme, is measured in long term. One needs to keep the following mind.
- Tuition fee: The average fees of the course.
- Starting salary: Companies often offer decent starting salaries in campus placements.
- Signing bonuses: Some colleges may offer signing bonuses. The amount can help in study load repayment.
- Salary increase rate: On an average, it is seen that the minimum salary increase every year is atleast 3 percent.
- Opportunity cost: If a candidate decides to drop a year after completing MBA, they tend to lose money in loan repayment as well as lose prospective income.
Best ROI - MBA Colleges in India
Here’s a list of a few top B-Schools in India, their fees and salary package offered in campus placement, to compare and find out MBA with highest ROI. Take a look:
| Institute |
MBA/PGDM Fees |
Highest package offered* |
Average Package offered* |
|---|---|---|---|
| INR 25.00 lakh |
INR 1.46 CPA |
INR 34.45 LPA |
|
| INR 24.50 lakh |
NA |
INR 35.92 LPA |
|
| INR 27.00 lakh |
1.20 CPA |
INR 35.07 LPA |
|
| NR 20.50 lakh |
INR 72.02 LPA |
INR 29.20 LPA |
|
| INR 20.70 lakh |
INR 65.00 LPA |
INR 30.00 LPA |
|
| INR 21.17 lakh |
INR 1.00 CPA |
INR 25.68 LPA |
|
| INR 2.00 lakh |
INR 1.23 CPA |
INR 34.10 LPA |
|
| INR 26.00 lakh |
INR 63.30 LPA |
INR 24.20 LPA |
|
| INR 21.52 lakh |
INR 85.40 LPA (international) INR 76.50 LPA (domestic) |
INR 29.10 LPA |
|
| INR 28.00 lakh |
INR 75.00 LPA |
INR 29.89 LPA |
|
| INR 21.00 lakh |
INR 81.00 LPA |
INR 33.00 LPA |
|
| INR 25.00 lakh |
INR 67.70 LPA |
INR 25.30 LPA |
|
| INR 6.10 lakh |
INR 87.12 LPA |
INR 26.12 LPA |
|
| INR 17.50 lakh |
INR 71.50 LPA |
INR 26.10 LPA |
|
| INR 19.50 lakh |
INR 43.69 LPA |
INR 19.43 LPA |
|
| INR 17.90 lakh |
INR 48.25 LPA |
INR 19.27 LPA |
|
| INR 17.20 lakh |
INR 37.80 LPA |
INR 18.69 LPA |
*The salary figures mentioned in the table are as per the latest placement data avaiable.
Also read:
- IIM Placements - Highest Salary Package & Top Recruiting Companies
- MBA Placements: Placement Report of Top B-Schools in India
- Average salary package of non-IIM graduates in India: NIRF-MHRD Rankings
- Top Management Institutes in India: NIRF 2024
- International salary packages offered at top Indian B-schools
Vipra is a massive Breaking Bad fan. When not watching crime drama series, she spends time in updating the list of places she wants to visit and people she wants to meet, but she is happiest in the company of dogs. ... Read Full Bio