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Calculating the ROI of an Online MBA Program

Calculating the ROI of an Online MBA Program

Online MBA programs are valued for money. But how can one be sure that the return on investment of an online MBA program is really worth it? The first step in the process would be to understand what ROI for Online MBA programs means.

ROI for online MBA programs- What it means

To understand what ROI for MBA programs means we have to be clear about what we are investing in. This would comprise of various costs:

  • Direct Cost which would be the cost or fees of the program 
  • Secondary Cost which would include all the peripherals like a laptop, phone, etc.
  • Opportunity Cost which can be defined as the amount of wealth you stand to lose by not doing something

 Once we are clear about the above we can move on to actually calculating ROI on online MBA programs.

Calculate and compare your online MBA program ROI

Compute your present salary, the full cost of the program to this, calculate your opportunity cost. Add all these components. The expected post-MBA salary is normally stated when you join the program. Out of this expected salary subtract the collective value of the cost components. This gives you the return on your online MBA ROI. This can be compared with the ROI of a regular MBA course using the same method.

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Determining a 10 Year Online MBA Program ROI

Multiply your post-MBA salary by ten years. Subtract ten years of your pre-MBA salary from this. Take away the cost of the online MBA program to get your ten year MBA ROI. This is the basic calculation. To make it even more accurate the salary rises per year could be factored in.

It would also be in order to check out the best online MBA degrees which are also the most popular.A few examples are MBA Finance & Banking, MBA Marketing, MBA Human Resources Management, MBA Investment Banking and Wealth Management, MBA Information and Technology, etc.

Online MBA Classes are generally held on weekends, looking at the convenience of the working executives. Some colleges/universities have the facility of online classrooms.

Online MBA is the Answer

Considering how important an MBA credential has become in today’s career graph, there is no reason to wait for the right time and right place for joining in. Enrolling for an online MBA right away would be the right option. It’s flexible, light on the purse, has great content and the ROI is very positive.

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