Is an MBA Worth It? Costs, Benefits & Career ROI

Key Takeaways

• An MBA is valuable because it deepens your understanding of how organizations operate, strengthens your professional credibility, and opens a wider range of career opportunities.
• The financial ROI of an MBA reflects how long-term salary growth, higher-paying roles, and faster advancement eventually outweigh the cost of the degree.
• An MBA is the right fit if your goals require stronger strategic skills, broader career options, or a credential that supports advancement into leadership roles.

A Master of Business Administration, or MBA, is a graduate degree designed to deepen a professional's understanding of business, including strategy, marketing, finance, accounting, leadership, and the systems that hold organizations together. According to recent data from Indeed, it is also the most popular graduate degree available, pursued by people working across fields.

But popularity alone doesn't answer the real question many prospective students are wrestling with: Is an MBA worth it? With so many people choosing this path, it's natural to pause and consider what makes the degree so widely sought after, what it promises, and how to determine whether it aligns with your own goals.

What Is the Value of an MBA?

The value of an MBA comes from the way it expands a person's understanding of how organizations work while also strengthening the confidence others place in their abilities. At its core, the degree builds business expertise. It helps students understand finance, strategy, operations, and the decision-making frameworks that shape a company's direction.

That depth of training naturally contributes to professional credibility. Employers often view MBA graduates as people who can manage responsibility and approach problems with a more structured mindset. The degree signals preparation for roles that require judgment, coordination across teams, and an ability to think ahead.

Because of this combination of skills and credibility, an MBA also creates career flexibility. Graduates can transition into new industries, shift into leadership-track positions, or take on responsibilities that require both analytical strength and big-picture thinking. Instead of locking someone into one path, the degree tends to widen the range of directions they can pursue throughout their career.

The Financial ROI of an MBA

The financial return on an MBA depends on two factors: what the program costs and how much your earning power grows afterward. Tuition varies widely. Some programs cost only a few thousand dollars per year, while others require a far larger investment. Because of this range, students often rely on a mix of personal savings, loans, scholarships, federal aid, and employer support to manage the expense.

For full-time MBA programs, cost is not limited to tuition alone. Many students also face opportunity costs in the form of lost income, since stepping away from the workforce for one to two years means giving up a salary, bonuses, and career momentum. This forgone income can significantly affect the overall return on investment.

The return on those investments begins once graduates re-enter the workforce. Many step into roles with higher starting salaries than they earned before the degree. Others use the MBA to transition into fields such as consulting, finance, or product management, where compensation tends to rise more quickly. Even for those who stay in the same industry, the degree often speeds up promotions, creating long-term income growth that outweighs the upfront cost.

Part-time MBA programs reduce this opportunity cost by allowing students to remain employed while studying. Continuing to earn a salary during the program can offset tuition expenses and shorten the time it takes to see a positive return.

Taken together, these factors shape the ROI timeline. For many students, the break-even point arrives within a few years, once higher earnings begin to surpass the total cost of tuition and borrowing, and any income sacrificed during the degree.

Career Growth and Opportunities

As noted earlier, one of the clearest ways an MBA delivers value is by widening the roles graduates can pursue. That broader perspective and stronger decision-making capability open doors to positions such as:

• Consultant
• Financial analyst or finance manager
• Marketing or brand manager
• Operations or supply chain manager
• Product manager
• Accounting or corporate finance roles
• Business development or strategy roles

The degree is equally valuable for career transitions. Many professionals use an MBA to move into new industries, shift from technical roles into management, or pursue opportunities that require stronger business acumen. With structured learning, professional networks, and exposure to different business functions, the MBA often becomes a practical bridge into fields that would otherwise be harder to enter.

Non-Financial Benefits

The impact of an MBA extends beyond compensation or job titles. Many of the benefits are felt in the relationships students form, the confidence they build, and the way their thinking becomes more structured and adaptable over time.

Across MBA programs, a strong professional network is one of the most enduring takeaways. Classmates, faculty, and alumni often grow into long-term collaborators and trusted advisors. At the Leavey School of Business, that network includes Santa Clara University's 100,000-plus alumni community and more than 25,000 Leavey graduates. As Lenore Grant, Senior Director of Graduate Business Recruitment and Admissions, explains: "MBA courses are designed to get students working in teams, sharing skills and perspectives. Most MBA students report that they landed their next job thanks to a classmate who enjoyed working together." This access is a defining advantage for students studying in one of the world's most influential business regions.

MBA students also gain confidence through the constant practice of communicating ideas, defending recommendations, and responding to diverse viewpoints. These experiences strengthen how students engage in conversations that involve complexity, competing priorities, or unfamiliar contexts.

Some benefits, however, are shaped by each institution's environment. At Leavey, flexibility and community support are recurring themes. Marina Nekhendzy-Basin, MBA '20, spoke openly about juggling school with life as a new mother: "I almost backed out before classes started because I thought 'How am I ever going to work school into my schedule?'" she said. "But I saw that I had a lot of support from the school, and that was very empowering. It was also a tight-knit community, and the program was flexible, which helped a lot." Her experience highlights a defining aspect of Leavey's culture as students navigating demanding careers and personal responsibilities find a community ready to support them.

That support also extended to her professional development. "My MBA helped me break through barriers in my career," she said, describing how professors reviewed resumes, practiced interviews, and offered guidance outside of class. Marina's story reflects the type of mentorship Leavey emphasizes.

When an MBA Might Not Be Worth It

The degree isn't right for everyone at every stage. Situations where the return may not justify the investment include:

• Unclear career goals. If you're pursuing an MBA because you're unsure what to do next, you could graduate in the same place—just with more debt. Clear objectives matter.
• Limited work experience. Without 3-5 years of experience, it can be harder to contribute meaningfully to discussions or apply what you learn.
• High debt paired with low expected salary increases. If your post-MBA earnings won't grow enough to support repayment, the math becomes difficult.
• Industries that don't value MBAs. Some fields don't prioritize the degree in hiring or promotion. Research your target roles carefully.
• Alternative credentials that fit better. For highly specific goals—data analytics, digital marketing, financial modeling—other programs may offer more direct training.
• Insufficient time or commitment. MBA programs are demanding. Without the bandwidth, you risk missing out on the learning and networking that create value.

How to Decide if an MBA Is Right for You

Making the decision to pursue an MBA or not requires evaluating several factors specific to your situation.

Start with career goals. Where do you want to be in 5-10 years? Does that role typically require or prefer an MBA? Talk to people currently in those positions about how they got there and whether they found their MBA valuable.

Assess your financial situation. Can you afford the program without taking on debt that would limit your post-graduation choices? If you need loans, will your expected post-MBA salary support repayment? Online calculators can help you model different scenarios.

Research the different MBA formats available. Programs vary by structure and intensity, so the best fit depends on your goals, experience level, and schedule. At Santa Clara University, we offer the Evening MBA, the Executive MBA, and the Online MBA—each designed for working professionals at different stages of their careers.

Consider timing. Is now the right moment in your career and personal life? Some professionals benefit from earning their MBA early, while others find more value after building deeper industry experience. There's no universal "right time," but there are better and worse times given your specific circumstances.

Visit campuses and attend information sessions. You're evaluating fit, not just rankings. Do the students seem like people you'd enjoy working with? Does the faculty's teaching style match how you learn? Does the culture feel right?

Talk to current students and recent alumni. Ask specific questions: How accessible are professors? How helpful is career services? What surprised you about the program? Would you make the same choice again?

Discover What an MBA Can Do for You

The question isn't simply "is an MBA worth it?" The real question is: "Is an MBA worth it for me, at this point in my career, given my specific goals?"

For many professionals, the answer is yes, especially when you choose a program that combines academic rigor with practical application, ethical leadership with business results, and flexibility with quality.

The Leavey Difference offers exactly that combination. You'll study in Silicon Valley's innovation ecosystem, learn from faculty who are both accomplished researchers and experienced practitioners, and join a community that prioritizes conscience alongside competence.

Whether you're looking to accelerate your current career path, transition to a new industry, or develop the skills to launch your own venture, the right MBA program provides the foundation you need.

Explore our MBA programs at Santa Clara University's Leavey School of Business. Find the format that fits your life and join a community where business education serves a greater purpose.

Frequently Asked Questions

How long does it take to complete an MBA?

Program length varies by format: full-time MBAs typically require 18-24 months, Evening MBA programs run 2-3 years, Executive MBAs take 18-24 months, and Online MBA programs offer flexible completion timelines of 2-4 years, depending on course load.

What’s the difference between an MBA and an Executive MBA (EMBA)?

An MBA targets professionals with 3-7 years of experience seeking career advancement or industry changes, while an Executive MBA serves senior leaders with 10+ years of experience focused on C-suite preparation.