QS TopMBA Return On Investment Report 2018

Why do people study MBAs? Is it the improved job prospects? The experience? The networking opportunities? For many applicants, it’s the eventual return on investment (ROI) that sells the course, but to understand how significant that return will be, students need the facts. For many MBAs, particularly at the very top business schools, tuition fees alone can run close to US$200,000, so being assured that the course is financially worth it is vital.

This is where QS’s latest report comes in: the QS TopMBA.com Return on Investment Report 2018 lists MBA courses at the world’s top institutions, alongside vital information - like how much graduates can expect to earn. Using data from 235 full-time MBA programs, the report aims to provide insight to the potential ROI of these degrees.

In the report, we’ve analysed four different metrics. The report is designed not only to look at the world’s top schools, but also to provide information about less prestigious schools where the majority of candidates will be studying.

The four areas are:

10-Year ROI

The most important part of this report is the 10-year ROI of MBAs. The path each graduate will take is different, so in order to calculate this score we looked at averages by using a standard calculation of the data we have, to provide an indication of the return graduates can expect. 10 years is the benchmark we use as this is long enough to allow the MBA to have real, tangible effects and a decent understanding of the career trajectory of graduates. It also allows the many students who create their own businesses to grow them sufficiently.

Payback Period

Using the same method as for the 10-year ROI, the payback period calculation looks at how long it will take candidates to recoup their tuition fees and forgone salary - in essence “paying back” their MBA.

Salary Levels

Often the key indicator for many - which business schools produce graduates with the highest salaries? This section provides a summary of average salary levels post-graduation from the top business schools.

Salary Uplift

The salary uplift figure provides graduates of less elite schools a realistic metric for their predicted success after graduation. Rather than focussing on specific figures, it looks at the percentage uplift graduates can expect once they’ve completed the course. The figure doesn’t take into account the varying currency strengths and average salaries in countries around the world, which presents a much fairer picture of success.