MBA Salary Insights: Increases and Averages

Some business professionals reach a point where they begin thinking about getting their MBA. Earning a MBA can be an ideal way to learn new skills, grow your professional network, and even enjoy higher earning potential compared to those without an advanced business degree

Earning a Master of Business Administration (MBA) can significantly boost your earning potential, but just how much you make can depend on a variety of factors. Understanding what you might earn after graduation and what influences that amount can help you make an informed decision about your next steps.

Factors That Influence an MBA Salary

Factors like the geographic area where you work, your level of experience, and even your alma mater can all affect your salary after earning an MBA. In its Corporate Recruiters Survey, the Graduate Management Admission Council (GMAC) reported the starting median MBA degree salary in the United States was $120,000 per year in 2024.

Based on GMAC’s report, the average MBA salary is 1.75 times higher than the starting salary for business graduates with a bachelor’s degree alone. Still, it’s important to understand the variables that can impact an MBA graduate’s salary.

Location

Location continues to play a meaningful role in MBA salary outcomes. Professionals working in major metropolitan areas often command higher salaries due to cost of living and market demand. As you evaluate your potential return on investment, consider how geographic trends in compensation align with your career plans.

States with the highest average cost of living in the U.S. include:

• Hawaii
• Massachusetts
• California
• New York
• New Jersey

Work Experience

An individual’s specific level of work experience also has an effect on average MBA salary. Requirements for MBA applicants’ level of relevant work experience vary by school and program, but the average MBA student possesses about five years of professional experience (or more for some mid-career professionals). With that in mind, you may consider this the bare minimum of what most employers will be seeking from an established professional with an MBA.

If you have more experience (or your experience is particularly relevant to the position for which you’re applying), it is possible that you could be offered a higher base salary — but this can vary from one employer to the next.

Industry

Working in certain industries with an MBA can sometimes mean higher pay, making it valuable to understand how industry can influence long-term earning potential. Finance and marketing are among the highest-paying fields for MBA graduates. These industries also tend to have relatively high levels of reported job satisfaction, plus ample opportunities for specialization and advancement. While fields like finance consistently offer higher-than-average salaries for MBA graduates, even within other industries, an MBA may help professionals transition into higher-paying leadership roles or niche specializations that command a premium.

School Attended

At the end of the day, not every MBA program is equal in the eyes of employers. When applying for competitive positions, holding a degree from a reputable business school could carry more weight and improve your chances of landing an interview or (eventually) negotiating a competitive salary.

How do potential employers gauge a school’s reputation in the business field? Ultimately, many employers will look at a program’s or institution’s accreditation. Being accredited by a reputable organization, such as the Association to Advance Collegiate Schools of Business (AACSB), demonstrates that the program has voluntarily undergone assessment and review to meet stringent standards for quality.

At Boston University (BU), our Online MBA (OMBA) program is AACSB-accredited — offering students the rigorous, integrated curriculum needed to thrive in today’s competitive business landscape.

MBA Compensation

It might be tempting to look solely at salary when exploring career opportunities with an MBA, but it’s essential to understand that compensation extends beyond pay alone.

For mid-career professionals, salary is just one part of the overall compensation picture. Earning an MBA can position you for higher-level roles that come with enhanced financial rewards—including increased base pay, annual performance bonuses, and long-term incentives like profit sharing or equity, depending on your industry.

As you advance, it’s also important to consider the broader benefits that often accompany leadership roles, such as expanded retirement contributions, additional paid leave, or professional development stipends. While sign-on bonuses may still be relevant in cases of internal transitions or role shifts, ongoing compensation growth is more often tied to performance, tenure, and strategic value within your organization.

Evaluating your total compensation beyond just salary can help you better assess the ROI of your MBA and the overall value of your career advancement opportunities.

Invest in Your Future with a Boston University Online MBA

Pursuing an MBA can be a viable path toward increasing your earning potential while diversifying your skill set for personal and professional growth. At the same time, because so many factors can influence an MBA graduate’s salary, you’ll want to weigh these carefully as you enter into salary negotiations.

Looking for an online MBA program that’s affordable, flexible, and tailored to meet the needs of today’s hardworking professionals? Boston University’s Online MBA delivers a quality curriculum with courses taught by world-class faculty. Thanks to a convenient online format, you can complete your MBA in as few as two years without putting your career on hold. Plus, with courses in leadership, risk management, innovation, and global opportunities, you’ll be equipped to tackle modern business challenges with the confidence of a seasoned business leader.

Get in touch to request more information about our OMBA at BU, or take the next step by completing your online application for admission.