How much does an MBA increase your salary? | Earnest

How much does an MBA increase your salary?

By Dorothy Howard | Published on October 21, 2025

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A Master of Business Administration (MBA) is a great launching pad for anyone looking to take their career to a higher level. Studies show that your median earnings continue to rise with each additional level of education, but particularly for an MBA. Today’s employers value many skills that you learn in an MBA, like cross-cultural communication, data interpretation, and high-level business strategy.

Generally, you can expect a nearly 70% increase in your salary after completing an MBA. A study from Coursera found that MBA graduates can expect to earn around $120,000, which is $50,000 higher than candidates with only a bachelor’s degree. Plus, the average MBA graduate makes $4,110,000 in their lifetime. Sounds great, right?

Keep in mind that there are a wide range of fluctuations and different factors that influence your compensation. And then there’s the cost of getting an MBA. Let’s dive into what exactly goes into a higher salary once you get your MBA degree, and discuss ways you can achieve a higher salary with your new degree.

What factors influence your MBA salary?

Many things can influence your salary after earning your MBA. Things like your pre-MBA salary, the industry you work in, the number of years of experience you have in your field, and the specific MBA program you graduated from can all impact your pay. And then there are other factors like how well you interview and are prepared to negotiate your salary with the recruiter.

Note: Remember that salary is only your base pay. Depending on your job offer, you may also get things like a hiring bonus, relocation compensation, stock options, or other valuable benefits.

However, regardless of where you get your degree, what you specialize in, or where you live, most MBA graduates can expect a pay bump after completing the degree. The reason for such high salaries with an MBA is that you can hit the ground running in your new role. You’ve already learned valuable skills like research, overall business strategy, collaboration and communication skills. Employers trust that you’ll be able to bring value to your role immediately with minimal guidance or training.

Let’s dive into some of the major factors that affect your average MBA salary.

Read More:How to Pay for an MBA

MBA specialization

Some fields generally make more money than others. This can be because of current demand, niche industries, or business needs. You can choose a general MBA or pick an area to focus on. This can help you advance in your current field or pivot to a new industry.

A general MBA degree earns an median starting salary of of $115,000 annually in the United States. You can choose a general option, which is usually a part-time program, or pick a specific area of business to focus your studies on, usually a full-time program. Here are the average salaries for some of the most common MBA specializations.

The university you attend

Seems obvious, but a more prestigious school can lead to a higher salary than a less prestigious school. This is because these established colleges have an expansive network of alumni and faculty that can help you make the right connections to get the job you want. Their business programs are typically well-funded, which means you get access to more resources, customized mentorships, interview training, and real-world challenges.

There’s definitely a tradeoff between your school’s status and the total cost of attendance. These Ivy League schools and other affluent universities are much more competitive to get into and charge higher tuition rates. We’ll discuss more about how to balance these factors later.

Online vs. in-person program

Online MBA programs continue to increase in popularity and the quality continues to improve. Partially due to the constraints from the COVID-19 pandemic, online MBA programs saw a spike in demand in recent years. These programs are generally more accessible because you can study from wherever you are–no need to go into a classroom. Historically, employers have preferred in-person MBA graduates over online programs. However, that preference is receding as the quality of online programs improves. Online MBA graduates can expect a similar boost in salary after graduation.

Location

Where you live and work affects your salary because of things like local economies and the cost of living. While you may get a higher-paying job in a city like San Francisco, you’ll also be paying more to live there. Research which cities offer higher salaries for MBAs to know what to expect when it comes to your compensation.

Industry

Industries like finance, consulting, and tech naturally pay more because these industries tend to pay better in general. Pursuing a job in a high-paid industry increases your chances of getting a salary boost.

An MBA degree is a great time to change industries because it can give you the transferable skills and credibility to pursue new roles, if that’s something you’re considering. Switching industries is one of the main reasons students take on an MBA.

How to get a higher salary with an MBA

It’s not just the degree that earns you a higher salary–it’s the skills you learn and can apply in roles that you apply for. It’s a combination of hard skills like calculations and research, as well as soft skills like negotiation and managing people. Here are a few tips to achieve a higher salary after graduation.

Many schools offer interview preparation programs. Go to these. The more practice you get at answering questions the better prepared you’ll be when the time comes for real interviews. When it comes to getting the offer and negotiating your compensation, you’ll have a better shot at getting what you want if you’ve proven your skills. You learned a lot in your program–be ready to ask for a proper salary!

Lean into the networking side of business while you’re in school. We all know the saying “it’s not what you know–it’s who you know.” And in business, this can’t be more true. Make a goal of connecting with your teachers and other faculty at your university. They’re here to help you achieve your career goals. Work with them to figure out a plan to get where you need to go.

Get a mentor. Someone who has more experience than you in your field of work can share their first-hand experience and offer guidance to help you get where you want to go. They’re great for bouncing ideas off and getting feedback from. There are many strategies to find a mentor, but most of these conversations start out by finding someone with a career you want and asking them for an informational interview.

Be prepared to negotiate your salary and other benefits. Before you attend any interview, research the role to find out the pay scale and job description. So you have the degree but do you have relevant experience to the job you’re applying for? Have you prepared for the interview and researched the pay range for this type of position? Can you illustrate your value to the company and show how you deserve a higher salary? These are all questions you should ask yourself before any interview.

Consider the cost of the degree

While salary is one exciting thing to look forward to with a new degree, you should also be thinking about how long it may take to pay off your student loans. Many MBA programs can be expensive. The average MBA tuition is approximately $56,850 for two-year programs, with top-tier schools such as Harvard and Stanford which are charging upwards of $152,820 to $164,910, respectively. It may take a few years or even decades to pay that off, even with a great salary.

Take time to calculate how long until you break even on your investment in the degree. This can help you decide which school to choose and start thinking about funding your degree.

There are a variety of ways to fund your MBA. Start by seeking scholarships–many MBA scholarships are available online or through the university you choose. You can also access federal student loans, however, there are some limits to your options as compared to when you were an undergraduate. You should also consider private student loans, which come with their own benefits.

Read More:A guide to income-driven repayment plans for grad school loans

What else can I gain with an MBA?

While salary is one of the main reasons people pursue an MBA, there are lots of other great advantages to this degree. Whether you’re seeking a promotion, shifting your career, or starting your own business, a good MBA program will have you well-prepared for just about any industry.

One of the main benefits people receive from an MBA is confidence in your skills. A good MBA program will push you out of your comfort zone and try new things, like public speaking, high-level decision making, and collaboration.

Job satisfaction also increases with an MBA. 72% of graduates from a GMAC survey reported that the degree helped them achieve business goals and personal goals. This survey also found that overall, almost all graduates have a favorable experience with their studies and a positive return on their investment.

An MBA is not just about increasing salary, but also about developing a wide range of business skills and gaining valuable networking opportunities. Many people agree that it’s the lifelong connections you make during your MBA studies that are in fact, the most valuable part of getting the degree.

How much does an MBA benefit your career?

The skills you learn during an MBA program are applicable to any field or industry, and these experiences benefit not only your career but your personal life as well. You’ll be on an excellent career trajectory after graduating. With any degree, but especially a master’s degree, you’ve proven your ability to learn a complicated subject in great detail, which shows your intelligence and problem-solving skills to any employer.

When you get an MBA, you’ll learn hard skills like business strategy, finance and accounting, and critical thinking. You’ll also improve your soft skills like negotiations, people management, cross-cultural competencies, self-confidence, and most of all networking. These skills will make you more marketable and valuable in any field you choose to pursue.

Remember, your starting salary is not necessarily the best measure of the value of an MBA compared to lifetime earnings. MBAs earn, on average, an extra $3 million over a 34-year career. While you may not get a higher paying job right after graduation, you can expect to earn much more over the course of your career.

Fund your MBA with a student loan from Earnest

Getting any kind of master’s degree increases your earning potential, but especially for an MBA and especially for certain fields. Fund your degree with a private student loan from Earnest. We offer specialized loans for MBA programs that fit your degree. Our loans are flexible, personalized for your needs, and have no fees, ever. Get started by filling out a loan application today. It’s free and takes less than five minutes.

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Dorothy Howard

Dorothy is the SEO manager at Earnest. With an MBA from Portland State University and specialized expertise in digital marketing, she strives to connect student loan borrowers with helpful, educational resources online. Her deep understanding of the costs of higher education empowers borrowers to make informed decisions. She strives to make higher education finances easy to understand for all students.