ROI on getting a MBA

Walmart.com wjBS78
Oct 9, 2018 34 Comments

How much difference did getting a part-time/full-time MBA made on your TC?

Myself: Strongly considering getting a MBA; however, skeptical about getting into student loans. Hence, the tc question.

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TOP 34 Comments
  • Microsoft Jolos
    I got admitted at Kellogg, and choose to not go since my TC is 300K.

    There is almost no way for me to spent 2 years getting that MBA and make that number coming out of school.

    On top of that getting in debt of 100K.

    For me it is not worth it. But if you are making 80K a year at small or cheap company and making a career change with the mba will increase your TC to 200K then go for it.

    Also if your company pay for tuition go for it part time. Regardless of TC.

    Part time can be done over weekend it is just a lot of committment
    Oct 9, 2018 8
    • Walmart.com wjBS78
      OP
      Good point! Do you think rising much faster has to do anything with networking that comes with a MBA?
      Oct 9, 2018
    • Microsoft / Product @zzz
      Some of these people who go to these top programs would probably have been successful regardless, but the MBA does open a few doors, and being able to show the degree, networking, and all combined I believe helps them.

      Harvard and McKinsey for instance have the highest percentage of ceos and execs in their alumni from a school and company respectively. There is ofcourse a selection bias, but I do think these experiences catapult you and put you in the right context for you to truly shine.
      Oct 9, 2018
    • Microsoft Jolos
      It is all relative. Most people who graduated from mba won’t make it to McKinsey or MBB for that matter. So if you are making a very high TC, then MBA won’t matter until when you get into upper management chain.

      When that happens, take an executive MBA program that finish within 1 year is much better. Usually company will pay for it
      Oct 9, 2018
    • Microsoft / Product Sanctiel
      I’ve seen McKinsey Associate Principals join Amazon as L7 PM. Tech I believe is way more lucrative right now.
      Oct 9, 2018
    • New VpvW08
      I am currently in Engineering at Microsoft and also got a place in Harvard/Stanford/Wharton for an MBA. Why should/ shouldn't I go for it? Plan in the long term is to be VP level at top tech companies.
      Jun 14
  • Microsoft / Product Sanctiel
    Depends on what your current TC is and if you’re able to break into the top 10 schools
    Oct 9, 2018 6
    • Microsoft qqxS28
      Depends also on what you want to do to know if it's worth it

      PE/VC, need to go to a top 3

      MBB consulting, go to an M7

      Medium/Big tech PM, PMM, Finance, Ops, go to a top 15 (especially if you can get a scholarship)

      Really depends what you want to do. To do tech biz side, top 15 is fine. Past that isn't worth it
      Oct 9, 2018
    • Google 404notfnd
      What are the top 3? Harvard, Stanford & Sloan?
      Oct 9, 2018
    • Microsoft qqxS28
      Harvard, Stanford, Wharton

      Sloan is an M7
      Oct 9, 2018
    • Starbucks 24246326
      What is PE? Guessing VC is venture capitalist?
      Oct 9, 2018
    • New / Product
      dangnabbit

      New Product

      PRE
      Microsoft
      dangnabbitmore
      PE=Private Equity.
      Oct 9, 2018
  • Google van2017
    Did a full-time MBA from a Top 5 school. Graduated 5 years back so basing on experiences post-MBA. I moved from a GBO role into the Eng ladder. I found almost no evidence (even for PM roles) where TC increase would overweigh the opportunity cost.
    Oct 9, 2018 1
    • Walmart.com wjBS78
      OP
      Thank you for sharing!!
      Oct 9, 2018
  • Cisco / Design
    ChuckU

    Cisco Design

    PRE
    Intel
    ChuckUmore
    MBA is overrated
    Oct 9, 2018 0
  • Reddit Rta42s
    Will be impossible to make up the opportunity cost bec your TC in tech is probably too high.
    You are better off staying at your company or if you don’t like it switching jobs. MBA makes sense for consulting/banking/ Corp finance.
    PE/VC is a pipe dream. There are 600 Harvard MBAs trying to get into VC in this year’s class. How many of them will actually make it? 5? Perhaps 10?
    Graduated from top 2 MBA school.
    Oct 9, 2018 1
    • Google 404notfnd
      What about part-time?
      Oct 9, 2018
  • Comcast keysersözæ
    $0.00
    Oct 9, 2018 0
  • IBM / Other nurx45
    New comp / old comp was roughly 1.7, Lost wages + tuition was roughly 300k. Killer re-fi rate (< inflation). I forget but last I calculated my break even at 7 years with modest pay increses. M7 MBA.

    Biggest value add that hasn't paid off yet is perceived ability to switch roles and industries much more easily as the economy and job market changes. We shall see on that one.

    Sacrificed probability of becoming a hardcore technical expert in anything - but I wasn't cut out for that anyways. Started a masters in eng before applying to MBA as a "last effort" to commit to an eng career and though my classes were boring as shit. My stress has gone up 5x but I never get bored.

    Though on this site I generally don't recommend getting a MBA. To beat SWE pay you'd have to go PE/HF or something and PE shops generally don't hire SWE MBAs without banking and PE experience.
    Oct 9, 2018 0
  • Microsoft / Product Sanctiel
    Current TC? And I’m happy to talk about it. Feel free to hit me up.
    Oct 9, 2018 2
    • Walmart.com wjBS78
      OP
      Sending you a direct message
      Oct 9, 2018
    • Microsoft / Product Sanctiel
      Cool!
      Oct 9, 2018
  • Cruise Automation buttnaked
    What about if switching from Eng to Finance with no previous Econ or finance background (talking about moving to investment banking, hedge fund, etc rather than finance at a tech company)?
    Oct 9, 2018 1
    • IBM / Other nurx45
      ROI? That's pretty public. Check Wall Street Oasis for IB associate pay rates. Most people at top programs who what to get into IB and dedicate themselves fully to it will get an offer. Assume tuition + COL + travel = 200-220k for single degree full time programs for unmarried people.
      Oct 9, 2018
  • Microsoft / Sales vYNh14
    Agreed, depends on current comp and where you go. Right now market is hot, so even top 25 can help. If you want a SLT role, some form of MBA can be a major help.
    Oct 9, 2018 3
    • Google 404notfnd
      What is SLT?
      Oct 9, 2018
    • Microsoft / Product Sanctiel
      Top 25 won’t help. A bunch of them struggling this year
      Oct 9, 2018
    • Microsoft / Sales vYNh14
      SLT is senior leadership. I am in touch with MBAs at Top 25 and market is still very hot for MBAs. On top of that applications are down. I say go for it.
      Oct 10, 2018
  • Nvidia cactii
    5-6x
    Oct 10, 2018 0
  • Ness Technologies FkTrump
    Ok let’s calculate. As you might already know MBA from non ranked schools not worth it. Top schools total expense would be close to 150k for 2 yrs. let’s say min your curr salary is 200k for 2yrs. Total real cost of MBA is 350k. Now let’s say you invested this money to earn 5% per yr return. For the next forty yrs it would become 2.4M at a compounded rate. So if you think you can beat that with an MBA degree go for it
    Oct 9, 2018 0