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LIBF blog Is an MBA worth it?

29 November 2023

Last updated: 20 May 2024

7 minute read

Do you dream of becoming a future leader?

If you see yourself in a leadership or managerial role in the future, or are thinking of stepping into entrepreneurship, a Master of Business Administration (MBA) degree could significantly impact your career. An MBA degree is globally recognised for unlocking doors to higher-level positions in the corporate world. Pursuing an MBA could be the pivotal step you need to advance your career and realise your dreams.

An MBA degree offers a unique opportunity to enhance your managerial skills, broaden your professional network, and expand your understanding of the business world on an international scale. You'll delve into business-related topics such as operations, marketing, finance, human resources, and strategic management, gaining a broadened perspective on how businesses thrive in the modern world.

How much is an MBA in the UK?

Pursuing an MBA is a major step forward in your career path. But one of the first questions you'll be asking is: "How much does an MBA cost in the UK?" The cost of an MBA in the UK can vary widely, depending on where and how you choose to study. Typically, you could expect to pay anywhere between £10,000 and £15,000 for a one-year programme. However, some business schools can charge up to £78,000 or more.

Such a high price often reflects the prestige of a higher education institution and sometimes the facilities and global exposure you'll gain. However, a higher price doesn't always mean better value or quality. Considering what each institution, university, or business school offers is crucial in determining if the costs align with your career objectives and financial situation.

Woman with curly hair at laptop research starting salary after studying an MBA with a business school.

How much are online MBAs in the UK?

Here at LIBF, we strive to make education both accessible and impactful. The total cost for our 100% online MBA programme is £10,250, evenly distributed over the course duration for full-time as well as part-time options, if you plan to work and study at the same time.

Our online learning approach makes studying more affordable without compromising the MBA degree's quality and the prospective career boost it offers. Ideal for prospective MBA students looking for a high ROI without the daunting debt that can come with higher-priced programmes.

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Is an MBA worth it?

MBA graduate degrees are widely respected and recognised by employers globally and pave the way for substantial career advancement. And often, the investment in earning an MBA is quickly offset by the increase in earning potential post-graduation.

University graduate student sitting in front of a laptop applying for work experience.

According to Payscale, as of May 2024, the average salary for MBA graduates stood at £58,000, with senior management jobs paying between £60,000 to £172,000. This is significantly higher than most graduate salaries. In the latest HESA Graduate Outcomes Survey (2020/21), the highest proportions of graduates in full-time paid UK employment were earning between £24,000 and £29,999.

If you're considering getting an MBA to elevate your position within your current organisation or to steer your career path towards more lucrative opportunities, it’s a good idea to discuss your study plans with your manager. Your manager could have a wider understanding of the potential opportunities in your organisation after completing an MBA, which could help you decide whether the investment of time and money required for an MBA degree will be worthwhile for you.

What is the ROI of an MBA degree?

The ROI of an MBA degree captures the potential for increased earnings and the development of valuable hard and soft skills highly desired in various managerial positions.

Career trajectory acceleration

An MBA can significantly enhance your career trajectory. MBA programmes equip you with critical problem-solving skills and decision-making capabilities, which are indispensable in leadership roles. Employers highly value the MBA skillset in the modern business environment, where the ability to navigate complex challenges distinguishes senior leaders from other professionals – positioning MBA graduates to move into higher roles and responsibilities more swiftly than their non-MBA peers.

Earning potential

Post-MBA salary expectations are critical to the ROI equation. While specific figures can vary, the upward shift in earning potential post-MBA is consistent. This increase is not just in terms of basic salary but also can enhance your eligibility for performance bonuses and other financial incentives, aligning with your improved capability to contribute to organisational success.

Calculating your personal ROI

Calculating the return on investment (ROI) for your MBA might sound tricky, but it's simpler than you think.

Imagine your total costs are £11,000, and your salary goes from £35,000 to £65,000 per year after your MBA. You would take less than 4 months to earn back the costs, as you’d be making £30,000 more each year. After those initial months, every extra pound you earn is a return on your investment in your MBA. This means more money in your pocket and more opportunities for your career.

Here’s an easy way to understand it.

1. Add up all your costs

Calculate your total study costs by adding up you course fees, additional costs such as study materials or commuting, living expenses, and any salary you miss out on by studying.

2. Estimate your future salary

Compare how much you could earn after your MBA with your current salary. In the UK, payscale.com reports on the salaries of MBA graduates and breaks this down by jobs by salary.

3. Calculate the payback time

Use this simple equation:

Time to earn back the cost of your MBA = (Total costs ÷ (Future salary - Current salary))

Five reasons why MBA programmes are worth it

Deciding to pursue an MBA involves more than just academic commitment. It's a strategic step towards enhancing your professional skills and expanding your network, which can be crucial in achieving your long-term career ambitions. By making an informed decision, you maximise the return on your educational investment, leading to improved job satisfaction and financial rewards.

Here a few reasons why making that decision could accelerate your future professional career.

1. You'll build a professional network

Did you know one of the greatest advantages of an MBA is the networking opportunity? An often overlooked benefit of MBA courses is their powerful networking potential, particularly for MBA holders looking to expand their professional horizons.

Whether through traditional or online MBAs, such as the one offered at LIBF, students often get access to valuable work experience opportunities as a benefit of becoming part of a community of future leaders. At LIBF, our global community spans over 130 countries and various industries and can offer continuous support and numerous career opportunities.

Happy businesswoman at laptop in office reviewing full-time job applications from MBA graduates.

2. You'll expand your managerial and leadership skills

An MBA equips you with essential skills needed for management positions, which are pivotal in any career path. The programme refines your strategic thinking and problem-solving abilities, which are crucial for leadership.

Beyond theory, practical applications through projects and team collaborations enhance your communication and leadership skills – all vital as you advance in your career. Are you ready to step into a management role?

3. Increased job opportunities

MBA graduates are highly sought after in a competitive job market. The broad understanding of business administration gained through an MBA allows you to work in various domains such as finance, marketing, and strategy, opening doors across companies in multiple sectors. This diversity expands your career opportunities and makes you a versatile asset to potential employers who value the skills developed on an MBA degree. What new industries could you explore with an MBA?

Business school degree student sitting happy in front of his laptop working on developing new skills.

4. Increased entrepreneurial opportunities

If you see yourself as an innovative entrepreneur in the making, an MBA is invaluable. It arms you with the necessary skills to turn innovative ideas into viable businesses.

From understanding market dynamics to crafting compelling business proposals, an MBA degree lays the groundwork for successful entrepreneurship. Are you prepared to turn your business idea into reality?

5. Personal development

Beyond advancing your professional objectives, an MBA also offers significant personal development opportunities. It challenges your perspective on global business issues, enhancing your creativity and ethical decision-making. The diverse peer interactions you’ll experience further refine your communication and team management skills, essential for handling dynamic corporate environments.

Is an MBA degree right for you?

Happy woman drinking her coffee is ready to pursue higher education

Absolutely! An MBA presents a multitude of advantages, such as increased earning potential, personal development, and expanded career opportunities. It is essential to recognise and fully embrace these benefits in light of the investment of time and money, aligning them with your career goals and personal circumstances.

If you’re looking for the ultimate freedom, take a look at our online MBA course and discover an affordable, flexible alternative to traditional on-campus learning.

Discover our online MBA course

Frequently asked questions about studying an MBA

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