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Key takeaways
- The average MBA graduate can expect to make six figures as their base salary.
- The average MBA salary varies by state, with Washington, New York, Massachusetts, Alaska and Vermont earning the highest wages.
- Your exact salary will depend on your location, your job role and experience.
If you’re considering or pursuing a Masters of Business Administration degree (MBA), the investment could be worth it. An MBA is one of the best-paid graduate degrees you can receive since it could lead to a six-figure salary.
That said, how much an MBA graduate earns depends on several factors, such as where they live, where they graduated from and what kind of industry they work in.
Average MBA salaries
According to the Graduate Management Admission Council’s 2024 Corporate Recruiters Survey Report, the average salary for U.S. MBA graduates is $120,000, whereas PayScale estimates the average salary for an MBA graduate to be $99,000.
An MBA salary depends on three things:
- Where you live
- Which school you attended
- Your exact job
MBA graduates take on a wide variety of roles from product developers to financial officers or chief operating roles. The higher you climb, the higher your salary will be. Below are some of the highest-paying jobs for MBA graduates by industry:
| Industry | Median MBA salary |
|---|---|
| Legal and professional services | $225,000 |
| Consulting | $185,000 |
| Financial services | $175,000 |
| Manufacturing | $165,000 |
| Technology | $162,750 |
| FinTech | $157,500 |
| Source: Wharton University of Pennsylvania |
Post-MBA salaries
How many years you’ve spent in your role directly correlates with how much you get paid, but even new MBA graduates can make six figures. Generally speaking, the more professional experience you have, the higher your salary.
The following table shows how an MBA grad holder’s salary tends to increase over time:
| Years of experience | Median MBA salary |
|---|---|
| 4-6 years | $145,000 |
| 10-14 years | $163,000 |
| 15+ years | $177,000 |
| Source: GlassDoor |
Factors that affect average MBA salaries
Your exact MBA salary is set based on a variety of factors, and research has shown they can significantly affect how much you get paid.
Gender wage gap
While the gender pay gap has improved over the last 57 years, it persists. Women continue to earn less than men for doing similar jobs. Right after earning an MBA, the average pay for women in their first post-MBA job was $126,710 compared to an average pay of $135,391 for men — an $8,681 gap, according to a 2022 Forté Foundation online survey.
The gap widens even further when the MBA survey participants were asked to reveal their current salaries. While the average current salary for males was $209,011, the average current salary for women was $173,070 — a $35,941 difference.
Location
Location plays a big role in how much you can expect to earn. Cities with higher living costs tend to have higher average salaries, while states with lower living costs tend to have lower average salaries.
The demand for MBA roles in a state can also impact the average salary. For example, regions with high demand for MBA-level jobs often have higher average wages. Below are the states with the top-five highest, mid-range and lowest average salaries:
| State | Average MBA salary |
|---|---|
| Washington | $187,300 |
| New York | $180,923 |
| Massachusetts | $180,607 |
| Alaska | $178,097 |
| Vermont | $175,833 |
| States with the highest MBA salaries | Source: ZipRecruiter |
|
State |
Average MBA salary |
|---|---|
| Illinois | $160,250 |
| Maine | $160,113 |
| Wyoming | $158,959 |
| Nebraska | $157,674 |
| Indiana | $157,362 |
| States with mid-range MBA salaries | Source: ZipRecruiter |
| State | Average MBA salary |
|---|---|
| Louisiana | $141,414 |
| Georgia | $139,638 |
| Arkansas | $136,747 |
| West Virginia | $126,026 |
| Florida | $123,582 |
| States with the lowest MBA salaries | Source: ZipRecruiter |
College attended
Different MBA programs may foster more knowledge and skills that allow you to go after high-paying roles at the companies you apply for. Accredited programs will typically hold more weight than nonaccredited programs. Students who graduated in 2023 with MBAs from these schools had the highest average starting salaries:
| School | Salary |
|---|---|
| Stanford University | $231,259 |
| University of Pennsylvania | $213,772 |
| University of Chicago | $212,997 |
| Dartmouth College | $208,372 |
| Harvard University | $208,369 |
| Columbia University | $208,030 |
| Massachusetts Institution of Technology | $207,084 |
| New York University | $206,374 |
| University of Virginia | $205,487 |
| Northwestern University | $205,022 |
| Starting salaries of MBA graduates by school | Source: U.S. News and World Report |
Is an MBA worth it?
Whether an MBA is worth it depends on your career aspirations and how much you may need to borrow to pay for your program. According to Education Data Initiative, the average MBA graduate takes on $63,146 in debt just to complete graduate school.
That said, data shows that having an MBA degree sets you up for significantly higher salaries. The Graduate Management Admission Council’s 2024 Corporate Recruiter Survey Report shows that U.S. MBA graduates’ starting salaries are roughly 1.75 times higher than those of bachelor’s degree holders.
Keep in mind that some high-level business careers don’t require an MBA. For example, you don’t need an MBA to become a CEO. As a result, it’s important to consider whether you can earn a higher salary without earning one. If you’re unsure whether an MBA would help, speak with your current employer or individuals who work in your desired career field.
Bottom Line
Earning an MBA could lead to a significant increase in your salary, depending on where you live. Some states have average salaries close to $190,000, though you should take into consideration years of experience, what type of job you pursue and other factors that may impact your earning.
Before you shell out thousands of dollars on an MBA program, weigh the pros and cons to see if it’s the best career move for you.
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