The costs for an MBA program are typically higher than those of a regular Masters degree program. However, there are considerable differentials in price levels, varying from institution to institution and sometimes even between countries. Pricing levels should not be taken as an indication of the quality of a program; particularly as fee level regulations differ by region and type of institution (public / private for example). Yet, in many cases fees do correlate to a business school’s reputation in the market and amongst prospective employers. As is the case with any other consumer products – you often pay not only for the actual product but also for the brand and brand association. Always make sure you research the institution of your choice carefully to assess whether it can meet your expectations for the money you are willing to invest. When considering the cost of studying an MBA you should generally take into account not only the tuition fees charged by the institution but also the cost of living associated with the location of the business school of your choice.

According to the Harvard Business School, the following should be taken into account as an approximation of cost in your first year of MBA studies at Harvard:

In comparison, programs at Lancaster University in the UK charge only $36,400 (£18,500) in tuition fee and associated living costs are relatively low:

An MBA in Finance at the University of Greenwich (London), in contrast, will cost just under $9,500 (£4,770) in annual tuition fees, but the associated cost of living in London is considerably higher than in a comparatively more remote locations. Also, take into consideration what the business school includes as part of the tuition fees. Does it include course materials? Does it offer internship placements? Is its alumni network extensive and well organized? Are additional services, such as careers services offered to the student? These are important areas to investigate before deciding which institution might be the one for you. Another important consideration is the opportunity cost related to studying an MBA. A full-time MBA typically does not allow for employment during the course of studies and you will have to consider whether you are able to afford high fees in addition to a loss of income for the duration of the MBA program. Relocation and travel costs

One of the most important considerations before enrolling in any MBA program is the cost-benefit, or Return on Investment (ROI) of a program. At an average of $40,000 a year, an MBA degree program is undoubtedly often costly, but if the school enjoys a good reputation amongst employers you will likely receive considerable return in terms of an increased salary package upon graduation. While an MBA program at Harvard might set you back a total of $77,000 a year, you can expect to receive on average a salary package of around $120,000 when graduating from this most prestigious business school. The average starting salary an MBA graduate can expect to receive by region is just under $89,000 in the US, $65,000 in Latin America, just over $90,000 in Western Europe, $64,000 in Eastern Europe and $67,500 in the Asia Pacific region*. Recent reports have shown that both European and Asian business schools are catching up to the high US standard of graduate salaries and similarly employers increasingly recognize the high standards of some non-US business schools.

High post-MBA salaries are of course not guaranteed and your ROI will depend on the reputation and market value of the program you attend. The more prestigious the institution, the more you can expect to earn after graduation (depending on the sector or industry) and vice versa.

In order to invest your money wisely, make sure you know what you aim to achieve with an MBA, know which business school can best meet your demands, assess how much you are willing and able to pay – in actual cost as well as in opportunity cost - and how much time you can dedicate to your study. This will allow you to plan your budget and course of study much more carefully. Financing your MBA can be a daunting task in light of such high costs, but there are many means of financial assistance that make the degree affordable. Most MBA students rely on loans, paired with financial assistance from personal funds or family funds. The market growth for student loans corresponds to the increased popularity of the MBA as a degree but before relying on any bank loans, it is recommended to fully explore scholarships and financial assistance offered through the institution you are applying to. The number of scholarships available through the business schools themselves is substantial and it is important to start researching the possibilities well ahead of time in order to meet any deadlines. For more detailed information on how to fund your studies visit our section on student loans and scholarships.

*Source: QS TopMBA International Recruiter Survey