Master of business administration (MBA)
Compare the resumes of top executives and you may notice some similarities. Most list a master’s of business administration, or MBA, among their education credentials. An MBA is a graduate-level degree that offers practical and theoretical training in the fundamentals of business management. This comprehensive guide provides essential information about how to get an MBA.
What is an MBA?
An MBA is a graduate-level degree that prepares students for managerial roles in the business world and beyond. It often serves as a steppingstone to C-suite jobs at large corporations. It is also advantageous for aspiring entrepreneurs.
Typical coursework
Most MBA programs include courses in core subjects like accounting, economics, marketing, and operations. Elective courses allow students to customize their MBA to their personal interests or professional goals. Some programs require an internship along with coursework.
What can you do with an MBA?
An MBA is traditionally pursued by business professionals with a few years of work experience under their belt. It opens doors to senior roles in various corporate settings. Working for a few years before applying to MBA program can be beneficial, or even essential, as many companies prefer to hire employees with a combination of education and practical experience.
Programs you might be interested in:
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American University
American University – Master of Business AdministrationMaster’s
Online
District Of Columbia
The AACSB-accredited Kogod School of Business at American University offers two online analytics programs that can be completed in as few as 12 months. No GRE/GMAT scores required to apply. Gain technical skills in SQL and Tableau with the MS in analytics or the MS in marketing analytics.
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University of North Carolina
The University of North Carolina at Chapel Hill – Master of Business AdministrationMaster’s
Online
North Carolina
The #1-ranked online MBA from UNC Kenan-Flagler Business School is STEM-designated and prepares professionals to lead in an evolving business landscape. Ensure data analysis is part of your decision-making process and add greater value to your organization. GMAT waivers are available. Learn more.
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Tufts University
Tufts University – Master of Business AdministrationMaster’s
Online
Massachusetts
The Fletcher School at Tufts University—ranked No. 6 in the world—goes beyond the traditional MBA with our online Master of Global Business Administration. Analyze business in a global context, anticipate risks, and lead with confidence. Graduate in as few as 16 months and join an alumni network that spans more than 135 countries. No GRE/GMAT required.
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University of Denver
University of Denver – Master of Business AdministrationMaster’s
Online
Colorado
Join a top-tier global network of leaders with University of Denver’s AACSB-accredited online MBA, ranked No. 23 on Poet&Quants’ list of Best Online MBA Programs of 2021. We offer GMAT optional for 2021 applicants, four unique concentrations, and scholarships are available. Complete the program in as few as 21 months.
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Pepperdine University
Pepperdine University – Master of Business AdministrationMaster’s
Online
California
No GMAT scores are required to apply for Pepperdine’s top-20 online MBA program from AACDB-accredited Graziadio Business School. In as few as 24 months, bachelor’s holders can take the next step toward driving change in business. Seven concentrations and a general track available.
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Syracuse University
Syracuse University – Master of Business AdministrationMaster’s
Online
New York
Skip the GMAT and earn a world-class MBA online from Syracuse University’s AACSB-accredited Martin J. Whitman School of Management. The program features a rigorous curriculum with six career-focused specializations. Upon graduation, 59% of graduates report receiving a raise or promotion. Learn more.
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University of Dayton
The University of Dayton – Master of Business AdministrationMaster’s
Online
Ohio
GMAT waivers and scholarships are available for eligible applicants to the online mba program from the AACSB-accredited University of Dayton School of Business Administration. In as few as 15-18 months, gain hands-on experience and prepare to become a strategic, service-oriented leader.
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Benefits of getting an MBA
The below shows the economic performance of an MBA 2 years after graduation. It offers a comparison of earnings to the median debt accrued, and compares the new earnings to earnings 2 years after receiving a bachelor degree in the same field of study. While the investment in an MBA is significant, the payoff can be too.
Debt and earnings
Earnings
$68,748
Debt
$48,180
Debt-to-earning ratio
0.7%
Graduate degree premium
Earning over bachelors
$19,498
Annual debt repayment
$6,528
Earnings premium
$12,970
The figures above give an indication of the debt incurred by graduates, and their salaries 3 years after graduation. The table on the left compares median debt and median earnings. The right-hand table compares how much a master graduate earns over a bachelor graduate 3 years after graduation, after deducting median debt repayments.
How much does an MBA cost?
Tuition is a serious consideration when it comes to picking a business school. There is a lot of variation among programs, with some more affordable than others. Tuition at a top-ranked MBA school ranges from $90,000 to $161,000. Additional expenses could put the total cost at over $200K.
We are limited to measuring the median debt graduates in this program incur upon graduation. See below how the debt and repayment rates differ based on institutions types.
Public
Debt
$14,803
Debt to earnings
0.45
Earnings
$95,607
Private
Debt
$24,568
Debt to earnings
0.5
Earnings
$86,926
For Profit
Debt
$18,169
Debt to earnings
0.86
Earnings
$59,221
Median earnings and median debt of graduates of this degree program. The debt-to-earnings ratio compares student debt to annual earnings. The lower the debt-to-earnings ratio the better, and total debt should never exceed annual earnings (a debt-to-earnings ratio of 1.0).

Public and private educational institutions have similar debt and annual repayment rates. These are somewhat higher at for-profit institutions.
Types of MBAs
There is a lot of variation between MBA program structures to accommodate students’ career levels and goals.
Traditional MBA
The traditional MBA is aimed at candidates with 2 to 7 years of work experience. Such programs usually require students to quit working to study full time. Some programs may offer part-time curriculums that allow students to work and go to school. Full-time programs usually last 2 years, but some schools now offer accelerated MBA programs that can be completed in a year.
Full-time programs may require you to complete an internship during the summer after the first year. An internship is an opportunity to use your skills. It can also serve as an audition for a job with the company. Many students are offered full-time employment with their internship company.
While the first year of a traditional MBA program covers the core curriculum, the second year tends to focus on elective courses and specialization options.
Executive MBA
An executive MBA is aimed at mid- or upper-level managers with significant leadership experience. Students in these programs typically have more than 7 years of experience. These programs usually adhere to the cohort or cluster style.
Executive MBAs are often structured so you learn from other students. Case studies tend to form the basis for learning, and fellow students from various business backgrounds contribute as much to the discussion as the instructor.
These programs are generally shorter than traditional MBAs. Most programs run from 16-22 months. They are designed to fit in with your work schedule. Scheduling options vary. The sessions of some executive programs take place on weekends, others meet 1 or 2 nights per week. Additionally, some programs offer a more intensive approach, meeting for a whole week each month.
Very few executive MBAs offer internships. They tend to assess prospective candidates based on work experience rather than standardized test scores. Many executive programs don’t require a GMAT or GRE, instead weighing relevant work and leadership experience as criteria for acceptance.
Online MBA
Online MBA programs are an option for students who require a flexible schedule and location. There is a lot of variability among online programs, so it’s advisable to investigate the specific parameters of any program you’re considering. For example, some programs allow students to complete coursework at their own pace, while others use a cohort format that includes online meetings.
Many online MBAs utilize pre-recorded lectures and instruction. This asynchronous approach allows students to learn when it’s convenient for them. Other programs offer synchronous instruction, requiring students to be online at a scheduled time.
The amount of interaction with other students can also differ between programs. In some, you are required to complete coursework independently. Others include regular online discussions and collaborations, or even opportunities to network face-to-face with fellow students and instructors.
Online programs typically take longer to complete than executive or traditional MBAs. Most require a 3-4 year investment of part-time study.
Comparing different types of MBA programs
When comparing which type of MBA program is right for you, there’s a lot to consider.
Average master’s
Online
18.8%
Campus
71.9%
MBA
Online
47.5%
Campus
31.1%
The above table shows the percentage of programs available either completely in person or fully online. Figures that do not add up to 100% indicate the existence of hybrid programs.
MBA specializations and concentrations
There is a subtle difference between specializations and concentrations. Concentrations provide students with exposure to subject matter through a series of focused courses within a given study area. Specializations provide students with deep knowledge in a specific area of expertise. Consider the types of specialization classes you could have access to as part of an MBA program.
Change management
This specialization helps managers and leaders who deal with organizational change to focus on goals, interpret macro and micro systems, and create strategic plans related to change. Courses may include organizational behavior, strategic management, and organizational leadership.
Accounting
MBA accounting courses don’t train you to be an accountant. They train you to interpret key financial statements and understand how the information impacts the cash flow and earning potential for a company.
Cybersecurity
An MBA with a concentration in cybersecurity is perfect for those interested in the technical side of business. Alongside standard MBA coursework, you learn to analyze policies, trends, and intelligence. This allows you to minimize cyber threats and conduct risk assessments to reduce your company’s vulnerability to attacks.
Environmental management
This concentration offers a basis in business administration and incorporates sustainability concepts. Programs teach students how businesses impact the environment and how operations can be altered to minimize the effects.
Innovation management
This concentration continues to grow. Many of today’s leaders want to better understand customer needs and strategic and creative thinking as it is related to product development. Courses in innovation management may include consumer behavior, market research, brand management, entrepreneurship, and strategic thinking.
How to pick an MBA program
Look for a program that fits your career goals and experience. Also consider how much time you want to devote to your education. These days, there are alternatives to the traditional 2-year MBA. Schools offer many different MBA programs based on work experience, your geographical location, and the amount of time you have available.
Questions to ask yourself
Consider the following questions when choosing an MBA program.
- How much experience do I have?
Upper-echelon business schools often require real-world work experience along with a bachelor’s degree from their applicants. The average age of first-year students at 18 of the top 25 MBA programs in the U.S. is 28. Students who enter these programs have an average of 5 years’ work experience. Executive MBAs are generally only available to professionals with 7-10 years of leadership experience. - What are my goals?
If networking is a key goal, an online program may not be the best choice. - Am I ready to study full time?
If part-time attendance is an important feature, focus your search on an online rather than traditional MBA. Keep in mind that online programs are more flexible but also last longer, around 3-4 years. - Would an online program suit my needs better?
With 47.2% of all MBA programs available fully online, this is one of the easiest degrees to earn online without compromising on quality.
Traditional vs executive MBA
Target student | Length of program | Pros | Cons | |
Executive MBA | Students with 7-10 years’ leadership experience | 16-22 months | Learn from others in your cohort; shorter duration; no GMAT or GRE required | Require in-person attendance |
Traditional MBA | Students with 5 years’ work experience | 2 years | Most academically intensive; internships often lead to job opportunities | Most programs require full-time enrollment |
Other considerations
See our comparison of traditional, online, and executive MBAs below.
Comparing regular vs online MBA
Target student | Length of program | Pros | Cons | |
Traditional MBA | Students with 5 years’ work experience | 2 years | Internships and networking opportunities | Usually requires full-time enrollment; no location flexibility |
Online MBA | Students of all experience levels | 3-4 years | Ability to continue working; can learn from anywhere | Fewer opportunities for networking and collaboration; longer time commitment |
Comparing executive vs online MBA
Target student | Length of program | Pros | Cons | |
Executive MBA | Students with 7-10 years leadership experience | 16-22 months | No test required; less of a time commitment; discussion-based learning | In-person attendance required |
Online MBA | Students of all experience levels | 3-4 years | Ability to study at your own pace; flexible; learn from anywhere | Fewer opportunities for networking and collaboration; longest time commitment |
Best MBA programs
Find below our ratings of the comparative earnings, debt, dent to earnings ratio, and the earning premium by MBA program. Please review our methodology for more information on what metrics we look at, and how to determine comparative value between institutions. Note that missing information is usually due to insufficient data for reporting.
Earnings: The median earnings of masters students 3 years after graduation.
Grad school premium: The marginal median annual earnings a grad student earns above a student with a bachelor degree in the same subject. The annual median debt repayment amount is deducted from this figure. For instance:
Graduate earnings: $100,000
Bachelor earnings: $45,000
Annual debt repayment: $15,000
Grad school premium = $100,000-$45,000-$15,000=$40,000
Debt: The median total debt of students graduating from the program, at the time of graduation.
Debt to earnings: Debt divided by earnings. The lower the better.
Economic score: The debt to earnings divided by the grad school premium percentage. The lower the economic score the better.
University of Pennsylvania
Philadelphia, Pennsylvania
Earnings: $186,790
Grad school premium: $131,304
Debt: $45,500
Debt to earnings: 0.2
Economic score: 0.07
Dartmouth College
Hanover, New Hampshire
Earnings: $180,970
Grad school premium: $118,515
Debt: $41,000
Debt to earnings: 0.2
Economic score: 0.07
Louisiana Tech University
Ruston, Louisiana
Earnings: $95,978
Grad school premium: $50,849
Debt: $16,228
Debt to earnings: 0.2
Economic score: 0.08
Stanford University
Stanford, California
Earnings: $187,054
Grad school premium: $129,181
Debt: $51,246
Debt to earnings: 0.3
Economic score: 0.08
Stevens Institute of Technology
Hoboken, New Jersey
Earnings: $130,651
Grad school premium: $75,938
Debt: $34,520
Debt to earnings: 0.3
Economic score: 0.10
Virginia Polytechnic Institute and State University
Blacksburg, Virginia
Earnings: $125,427
Grad school premium: $72,131
Debt: $33,994
Debt to earnings: 0.3
Economic score: 0.11
Rice University
Houston, Texas
Earnings: $134,258
Grad school premium: $80,574
Debt: $41,000
Debt to earnings: 0.3
Economic score: 0.11
James Madison University
Harrisonburg, Virginia
Earnings: $105,768
Grad school premium: $53,612
Debt: $25,500
Debt to earnings: 0.2
Economic score: 0.11
Columbia University in the City of New York
New York, New York
Earnings: $179,305
Grad school premium: $120,999
Debt: $72,314
Debt to earnings: 0.4
Economic score: 0.12
Oakland University
Rochester Hills, Michigan
Earnings: $100,527
Grad school premium: $46,097
Debt: $22,949
Debt to earnings: 0.2
Economic score: 0.12
How to get an MBA
- Earn a bachelor’s degree
- Gain work experience
- Take the GMAT and/or GRE
- Find a program that suits your circumstances and goals
- Submit your application
- Fill out the FAFSA or consider how you can otherwise fund your studies
- Start your program
- Excel in your MBA classes and network
Financial aid and scholarship options
Your first stop for financial aid should always be the Department of Education’s website for Federal Student Aid. This is where you can find and fill out the Free Application for Federal Student Aid.
If you fail to receive enough federal grant money to attend college, you may want to consider taking out a guaranteed student loan.
If you are employed, check whether your employer offers a tuition assistance program.
Apply for as many eligible scholarships as you can.
Talk to your school’s financial aid department about fellowships, scholarships, and private grants.
MBA scholarships
There are 113 scholarships totaling $308,500 in value available specifically for mba students.
Leverage your company
Pursuing an MBA when you’re already employed allows you to take advantage of employer assistance. Many companies offer tuition reimbursement, scholarships, or other incentives for returning to school. They do this for 2 reasons. First, employees who earn MBAs acquire valuable skills that can enhance their job performance. Second, covering tuition costs increases employee retention, satisfaction, and company loyalty.
Investigate your company’s policies and requirements on education reimbursement. Some companies subsidize a portion of the tuition, while others pay the cost in its entirety with the expectation that you continue to work for the company for a specific time. Others set up competitive fellowships. Similar to scholarships, fellowships are often merit-based and there is an application process.
Not all companies offer a formal tuition reimbursement program. However, you can always make a proposal to your supervisor that outlines why earning an MBA would benefit you and more importantly, the company. Treat your proposal like a business pitch. Include elements like:
- your professional accomplishments at the company
- the total cost you would like your company to reimburse
- any time off you need for courses and projects
- an outline of how the MBA program is relevant to your work and to the company
- the length of time you commit to working at the company after earning your MBA
While the company may turn down your request to contribute to the cost of your MBA, it is well worth it to inquire about the possibility.

What to expect from an MBA program
Although MBA programs have courses in broad topics like management, finance, marketing, and accounting, some offer specializations and concentrations not universally included. By focusing on a specialty, you can expand your skills and might make yourself more marketable to future employers.
How long does it take to get an MBA?
Traditional on-campus MBAs take about 2 years to complete. An accelerated or online program may take a year to 18 months.
What are the admission requirements for an MBA?
Admission requirements vary between MBA programs. Applicants often assume they have to sit the GMAT or GRE test to gain admission, but that’s not always the case. Many online and executive programs don’t require standardized test scores. Instead, they focus on work experience, professional recommendations, interview responses and other such factors when considering an application.
Demonstrable leadership skills and business experience can help with your MBA application more than test scores or even grades, but undergraduate grades do factor into the equation. All MBA programs stipulate an undergraduate degree, and many have a minimum GPA requirement. However, your bachelor’s doesn’t have to be in business. Many programs accept students from other backgrounds like communications, political science, health sciences, or technology.
Importance of interviews and recommendations
Personal interviews are an important factor in MBA program admissions. According to a survey by the Graduate Management Admission Council, the organization that administers the GMAT exam, traditional 2-year programs place more emphasis on the interview than test scores or undergraduate transcripts. Executive programs give test scores 8% weight, while the interview accounts for 30%. In the admissions process for traditional MBA programs, the interview receives 21% weight, and test scores 20%.
Letters of recommendation are equally important. Most programs require applicants to submit letters from a third party such as a supervisor, professional colleague, or other connection. This allows admission advisors to get to know the candidate on a more personal level. Recommendations from alumni may be beneficial when applying to highly competitive programs. Some provide templated letters, meaning that respondents answer the same questions.
Other things to consider
There is more to selecting an MBA school than admission requirements and program structure. For example, if you are currently unemployed or need to leave a job to complete the MBA program, make sure you attend a school that offers robust job placement services.
Also, consider the specializations and concentrations the programs offer. While some programs include standard curricula in business administration, others feature specialized courses that allow you to hone your skills in a specific area.
MBA careers
Earning your MBA opens up many career opportunities in the business world, including roles such as top executive, financial manager, and budget analyst.
Some MBA graduates enter managerial roles in nonprofit organizations, government, healthcare, higher education, technology, or the public sector.
Master of business administration FAQs
Are MBAs worth it?
Business school represents a significant investment, but it comes with a clear payoff. Employees with MBAs traditionally earn more than those with only a bachelor’s degree. It’s impossible to say with certainty how much you can earn once you receive an MBA, but according to Fortune magazine the average starting salary for MBA graduates in 2020 was just over $105,000.
What are the benefits of getting an MBA?
MBAs may be expensive, but they can be worth the investment. An MBA might help you to earn more money. Additional potential benefits include:
- increasing job prospects within your existing field
- possibility of switching to a new company or even a new field entirely
- making more contacts within the business world who can help you professionally and personally
Are MBA programs hard?
MBA programs can be challenging, but keep in mind that most students are professionals with several years of work experience. Study is usually reading-based and there are often many class discussions based on those readings. MBA programs encourage critical thinking and consolidation of disparate business skills in an effort to train more holistically educated managers. Full-time students are encouraged to treat their MBA program like a full-time job, and plan their schedule accordingly.
Is the MBA a terminal degree?
Although it’s possible to pursue a Doctor of Business Administration (DBA), most consider the MBA a terminal degree for business professionals.
Is it better to get a master’s or an MBA?
The choice between a master’s degree in business and an MBA largely depends on your previous professional and educational experience. MBAs are usually completed by business professionals with several years’ work experience, while master’s degrees are more commonly pursued by recent college graduates. Additionally, the MBA typically provides training across all key business areas, while master’s degrees are focused on a business subdiscipline such as finance, marketing, or entrepreneurship.
Additional resources
American Management Association
The AMA provides training and valuable resources to ensure business professionals stay knowledgeable in the competitive business world.
Association for Financial Professionals (AFP)
The AFP serves treasury and finance professionals.
American Marketing Association (AMA)
The AMA is the largest marketing association in North America and is a resource utilized daily by thousands of marketers.
National Human Resources Association (NHRA)
NHRA, established in 1961, supports the professional development of human resource professionals.