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How to calculate value of MBA degree ?
View CommentsValue of MBA degree is measured by two parameters, the return an MBA degree provides in terms of the salary post MBA and how much it costs to get an MBA degree. This value of MBA is also called the return on investment of MBA degree. Suppose your salary before MBA was X and it costed Y to do the MBA, then the immediate value of your MBA is (Y-X) divided by X, here (Y-X) is the increase in
salary you get after your MBA. The real value of MBA degree is calculated by the year it takes to pay off the MBA fees, i.e., Y divided by (Y-X). The lower this value is for a MBA the better it is for you.
You can calculate value of MBA even more accurately by using the value of X which will be after taking 2 years of work experience into account. Since you are putting 2 years to do your MBA.
Business week has published a MBA Ranking based on Return on Investment of Business schools across the world.
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