MBA Salary: 2025 Guide

In the world of business, Master of Business Administration (MBA) degree salaries are generally much higher than the salaries of people in comparable roles who don’t have an MBA. A Graduate Management Admissions Council (GMAC) survey projected the median starting salary for MBA graduates at US companies in 2024 to be $120,000 [1]. That’s $30,000 higher than projections for experienced, direct-from-industry hires and $50,000 higher than job candidates with a bachelor’s degree [1].

Average MBA starting salary data does vary across surveys. The National Association of Colleges and Employers (NACE) Winter 2024 Salary Survey projected a lower average MBA starting salary of $75,303 [2], and US News & World Report calculated an average starting salary for the class of 2023 as $109,159 base salary and $128,997 including bonuses [3], while the Forté Foundation’s analysis of 2022 MBA salaries found that graduates earned a more generous average between $117,000 and $136,000 in their first job post-MBA [4].

Learn more about some of the factors that can affect the average MBA salary, including:

1. Industry

2. Location

3. School attended

4. Years of work experience

Also, examine data outlining average MBA salary increases and salary growth over time.

Factors that influence a Master of Business Administration salary

A number of factors can influence the amount of money you can anticipate earning after getting your MBA, including industry, job location, the school you graduate from, and years of experience.

Consider how each of these four factors can impact earning potential—and how you may be able to maximize yours—so that you can better estimate how your MBA may boost your salary.

Industry

Certain areas of business tend to offer higher salaries. According to The Wharton School of the University of Pennsylvania, median annual salaries for MBA holders for the following industries are [5]:

If you are hoping to maximize your post-MBA salary in a specific industry, it can be helpful to seek MBA programs that are recognized for their commitment to that specific industry and to tailor your coursework to meet any industry requirements. For example, if you are hoping to work in consulting, seek programs that offer a consulting major or specialization to further hone your skills in that area.

Location

Where you are can influence the amount of money you make. Generally, local cost of living and local industry demand are two factors that may impact salary.

According to ZipRecruiter, which reports an average MBA salary of $165,372 in the US, the 10 states with the highest average MBA salaries are [6]:

However, this analysis is guided by salary data primarily retrieved from jobs listed on ZipRecruiter. Many MBA programs offer career placement and networking services that allow graduates and hiring companies to connect via channels outside of the traditional job-posting websites, so this data set likely only represents one portion of the MBA degree job market.

Still, as you consider your post-MBA career options, it can be useful to consider where your industry of choice is concentrated, as there will likely be more financially competitive opportunities in those areas.

Additionally, consider the local cost of living. Making more money in an area with a high cost of living may result in a similar lifestyle as making less money in an area with a low cost of living.

School attended

Having a certain school’s name on your resume may help boost your chances of securing a higher-paying job. This factor may be due to the caliber of the MBA program or the school’s career placement and networking opportunities, among other reasons.

According to US News & World Report, these schools reported the highest average starting salary with bonuses for their 2023 full-time MBA graduates [3]:

Keep in mind that these are averages and some graduates from each of these programs make significantly less money—often those in lower-paying industries or locations. Additionally, many schools outside of this top ten list still report above-average salaries.

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Using employment reports

For a more complete understanding of MBA salaries of graduates from a specific school, search for the school’s employment report. Often released annually, MBA programs report job details for their most recent graduating class, including statistics like average salary, which may be broken down further by industry, location, and specific employers.

Employment reports can be a useful reference as you consider which MBA programs might be a good fit for you because they can offer insight into the job functions each program focuses on, as well as potential networking avenues.

Years of experience

In any industry, people with more work experience are well-positioned to make more money than those with less experience. This is also true of people who get an MBA degree: graduates with more work experience tend to make more money than those with less experience. For comparison, you can look at people who graduate from Executive MBA (EMBA) programs.

According to the Executive MBA Council, EMBA candidates enter their programs with an average of over 14 years of work experience, including just over nine years of management experience. By the end of their program, 2022–2023 graduates reported an average salary (including bonuses) of $193,215, up from an average of $239,312 at the start of their program [7].

This post-MBA salary is noticeably greater than even the highest reported average MBA salary, $136,000 per the Forté Foundation [4], in part because full-time MBA candidates typically average around five years of work experience.

How much can an MBA increase your salary?

According to a comparison done by Payscale, earning an MBA in addition to your bachelor’s degree can significantly increase your salary [8]. The job titles with the greatest salary increases are:

The industries with the lowest salary increase—but an increase nonetheless—are:

Average MBA salary after five years

MBA graduates are poised for a positive salary trajectory in the years following graduation. According to Glassdoor, the average yearly MBA salary after four to six years is $111,362 [9]. As you might expect, this number continues to increase with years of experience: 

MBA compensation packages: A quick guide

Overall, MBA compensation is often more than just salary. Many MBA candidates receive job offers with compensation packages that include a base salary along with a signing bonus, a performance bonus, stock options, or other benefits:

• A base salary is an annual compensation distributed through paychecks received at regular intervals.

• A signing bonus is a one-time compensation received upon accepting a job offer. Companies may pay this in one lump sum, or they may distribute the bonus in a few installments.

• A performance bonus is an additional compensation received upon reaching established goals or targets.

• Stock options are the ability to buy a company’s public stock at a discounted rate. At a private company, compensation packages may include equity, which is owning a financial stake in the company.

• Other benefits may include things like profit sharing, tuition reimbursement, 401(k) plans, and offerings along those lines.

Considering the entire compensation package beyond the base salary can boost total earnings by tens of thousands of dollars. US News & World Report surveyed salary data from 124 business schools and found that, of the 108 schools that reported graduates receiving signing bonuses, the average signing bonus for 2023 MBA graduates was $22,776 [3].

Meanwhile, stock and equity options open up the potential for significant long-term gains.

Earn your MBA on Coursera

Earning an MBA can significantly increase your salary, depending on the industry, location, experience level, and degree-issuing university.

If you are ready to further explore how an MBA might advance your career, consider the iMBA from the University of Illinois Gies College of Business, a competitively ranked education at a breakthrough price with a global alumni network, available on Coursera. Start taking courses for free through Specializations in Digital Marketing, Strategic Leadership and Management, Financial Management, and more.