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Calculating the ROI of Your Online MBA

The Master of Business Administration (MBA) is a graduate degree program that has long appealed to experienced professionals who want to become proficient in the most advanced business practices in hopes of acquiring higher-level leadership positions in their industry. An MBA graduate degree program can be completed entirely online, giving you the flexibility to earn your MBA while balancing your existing responsibilities.

This rigorous program requires an investment of your time and resources, which leads many to wonder, what is the MBA return on investment (ROI) that they can expect? Understanding the value of an MBA degree can help you decide if this is the right time for you to enroll in business school.

What Is ROI, and Why Does It Matter for Your Online MBA?

ROI stands for return on investment — and your education requires an investment of your financial resources as well as your personal and professional time. Recognizing the fact that you will be investing your time, energy and resources into your online MBA degree, it's important to be aware of the online MBA ROI that you might expect in the years to come.

Defining Return on Investment in Education

Education Resource Strategies defines return on investment in education as the relative success of your investment in your education, based on the financial and non-financial benefits that result from earning your degree. Essentially, the value of an MBA degree extends beyond its impact on your overall earning potential to also encompass the personal and professional rewards associated with earning this coveted graduate degree.

The Importance of Measuring Both Financial and Personal Gains

Naturally, most prospective MBA students wonder, “Is an MBA worth the cost?” When you are looking into the tuition and fees required for this graduate degree program, you may initially calculate the ROI based solely on financial gains. While it makes sense to consider whether the MBA program is a worthwhile financial investment, it's also crucial to consider the personal gains associated with earning this degree. By measuring both financial gains and personal advantages, you will develop a holistic understanding of the online MBA ROI.

Tangible Benefits of an Online MBA

Some of the most significant online MBA advantages are tangible benefits you can realize shortly after graduating with your degree. Recognizing the tangible benefits of this graduate degree program will help you determine if earning an MBA aligns with the career advancement strategies you are considering.

Some of the tangible benefits of an online MBA include:

Potential Salary Increase and Promotion Opportunities

The potential increase in earning potential is one of the primary reasons why professionals pursue an MBA degree, but how much can you earn with an MBA? According to Investopedia, the base salary you could earn after completing an online MBA degree program will vary significantly based on several factors — such as the industry where you work, your current professional experience, the region where you live and the employer that you work for.

However, in general, students who earn an MBA degree find that they are able to increase their earning potential over the course of their degree, ultimately improving their overall online MBA ROI. According to the National Association of Colleges and Employers, the salary projections for students who graduate with a master's degree in business are expected to rise by about 6%, which is welcome news for those who are investing in their education.

The MBA is considered a premier qualification in business, and earning this degree can help you be considered for potential promotion opportunities. Overall, most find that their MBA degree leads to professional growth and development throughout the course of their careers.

Increased Job Security and Career Stability

In a competitive job market and an evolving economy, an MBA degree can provide you with added job security and career stability. Employers are more likely to retain employees who have invested in themselves and who have the most advanced skills, which puts MBA graduates in a favorable position throughout their careers.

Expanded Professional Networking Opportunities

Throughout your online MBA degree program, you will have the opportunity to connect with classmates who have a broad range of professional experience as well as instructors who can leverage the knowledge they acquired throughout their careers while working with their students. These expanded opportunities for professional networking allow you to learn more about the best career advancement strategies and to explore new job prospects within your field.

Intangible Benefits of Pursuing an Online MBA

As you begin to calculate your MBA return on investment, you may focus on the tangible benefits first, such as the potential salary increase after MBA. However, this degree program also offers a host of intangible benefits that you should consider as you determine your online MBA ROI.

Additional benefits you may enjoy as a result of earning an MBA degree online include:

Personal and Professional Skill Development

The curriculum for the online MBA degree program not only covers advanced business topics but also focuses heavily on business leadership qualities. Leadership development takes center stage throughout the MBA curriculum, enabling students to develop a deeper understanding of business ethics while fine-tuning soft skills such as communication, problem-solving, collaboration and critical thinking.

Enhanced Confidence and Leadership Qualities

As you complete the online coursework for your MBA degree, you will become more confident as you navigate different scenarios in the workplace. Much of the coursework requires you to analyze case studies and participate in role-playing activities, through which you learn how to implement your newfound sense of business acumen and leadership in real-world scenarios.

Career Satisfaction and Fulfillment

Pursuing an MBA degree allows you the opportunity to tailor your career path and focus on a specialty area that aligns with your personal interests and professional strengths. Examples of concentrations you could choose include digital marketing, healthcare administration and supply chain management, to name a few. By selecting a concentration you are passionate about, you will enjoy a greater sense of career satisfaction as you explore new and specialized opportunities in your field.

Factors to Consider When Calculating Your MBA ROI

Before enrolling in an online MBA degree program, take the time to weigh the tangible and intangible benefits of earning this desirable graduate degree. Below are the key factors to account for when calculating your online MBA return on investment:

Tuition Costs and Financial Aid Opportunities

First and foremost, it's essential to be aware of the tuition costs associated with your online MBA degree program. Choosing a reputable program with affordable tuition fees will allow you to maximize your online MBA ROI. Remember that there are often financial aid opportunities available, including scholarships and student loans, which can help reduce the burden of your financial investment in your degree.

Opportunity Costs of Pursuing Further Education

Defined as the potential benefits lost due to a missed opportunity, MBA opportunity cost requires you to consider the choice between earning your graduate degree or focusing on skills-based development in the workforce. As you consider the opportunity costs for pursuing further education, keep in mind the amount of time you will spend away from family as you earn your degree, the potential impact on your current job and the potential income that you may have to give up in order to earn your degree.

Timeframe for ROI Realization

Setting a realistic timeframe for your ROI realization will help determine if your online MBA may be worth it. In some cases, you may realize some benefits immediately upon graduating, whereas others may not come to fruition until later in your career.

Maximizing the ROI of Your Online MBA

Even after calculating your MBA return on investment, you can implement strategies that help maximize your ROI throughout your career. You can maximize your online MBA ROI by:

Leveraging Your MBA Network for Career Growth

Continue to keep in contact with your instructors and classmates following graduation. Your MBA network will prove to be a powerful career networking tool, allowing you to access opportunities for professional development and career advancement in the months and years to come.

Ongoing Professional Development Post-MBA

Prioritize lifelong learning throughout your career. Earning your MBA degree enables you to develop an advanced understanding of the most effective business strategies and to develop business leadership qualities, but ongoing professional development allows you to take advantage of emerging trends and become proficient in the most advanced business technology.

How to Continuously Assess Your MBA Investment

As you move forward after graduating with your MBA degree, you can continue to assess your MBA investment by tracking your salary increases over time, evaluating your career growth and measuring your leadership development. Continually assessing your MBA investment is the best way to track your ROI throughout your entire career.

Is an MBA Worth the Cost? Discover the Value of MBA Degree at Texas Wesleyan University

The MBA degree has long been considered the premier academic qualification for business professionals who strive to pursue leadership positions. At Texas Wesleyan University, we offer an online MBA degree that allows you to invest in your education and enjoy lifelong benefits throughout your career.

Our online MBA program features several in-demand concentrations — such as digital marketing, business administration, data analytics, accounting, healthcare administration and supply chain management — so you can select a specialty area that aligns with your interests and your professional goals. The rigorous yet flexible curriculum of this graduate degree program is designed to equip you with the skills required to gain a competitive edge in today's dynamic job market.

Request more information about our online MBA today.