Know The ROI of Your MBA Degree

Know The ROI of Your MBA Degree

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Updated on Jun 27, 2019 16:50 IST

Before choosing an MBA college, it is very important to know the ROI of degree obtained from that college. Read below to know what is ROI of an MBA degree, how it is calculated and what impact it has on your career.

Today, MBA is one of the most popular professional degree across the world for its lucrative career trajectory and handsome pay packages. However, management programme is in itself an expensive affair. In India, the scenario is currently different from rest of the world.

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In a 2016 report by Assocham, barring IIMs, most of the 5,500 Business schools in the country are producing "un-employable" sub-par graduates, earning less than Rs 10,000 a month if at all they find placements.

While on an average each student spent nearly Rs 5 lakh to Rs 10 lakh on a two-year MBA programme, their monthly salary is a measly Rs 8,000 to Rs 10,000.

The right way to calculate the ROI i. e. return of investment, of an MBA degree is to estimate the annual increase in salary and figuring out how many years will it take to recover the student loan/ investment through salary increases over a period of 10 years. The calculation should also take into account pre-MBA and post-MBA work experience, EMIs, market conditions and so on.

While, comparing ROI in an MBA programme with salary offered in campus placements, does not provide a correct picture, it nonetheless gives an idea of the ROI i.e. return of investment.

Here’s a list of a few top B-Schools in India, their fees and salary package offered in campus placement. Take a look:

Institute

Year

MBA/PGDM Fees

Highest package offered

Average Package

offered

IIM Ahmedabad

2019

Rs 22 lakh

NA

NA

IIM Bangalore

2019

Rs 21 lakh

NA

NA

IIM Rohtak

2019

Rs 12 lakh

Rs 24.13 LPA

Rs 11.85 LPA (domestic)

IIM Ranchi

2019

Rs 10.5 lakh

Rs 58.1 LPA (international)

Rs 26 LPA (domestic)

Rs 15.02 LPA (domestic)

IIM Indore

2019

Rs 16 lakh

Rs 89.25 LPA (international)

Rs 40.5 LPA (domestic)

Rs 20.79 LPA (domestic)

IIM Kozhikode

2019

Rs 17.50 lakh

Rs 40.50 LPA (domestic)

Rs 23.74 LPA (domestic)

FMS, Delhi

2019

Rs 20,960 per year

Rs 48 LPA (domestic)

Rs 27 LPA (domestic)

MDI, Gurgaon

2019

Rs 21.34 lakh

Rs 40.79 LPA (domestic)

Rs 20.93 LPA (domestic)

IIFT, Delhi

2019

Rs 15.2 lakh

Rs 1.5 crore LPA (international)

Rs 20.07 LPA (domestic)

XLRI, Jamshedpur

2019

Rs 23 lakh

Rs 50 LPA (domestic)

Rs 22.35 LPA (domestic)

SPJIMR, Mumbai

2019

Rs 15.5 lakh

NA

Rs 22.9 LPA (domestic)

NMIMS, Mumbai

2018

Rs 14 lakh

Rs 30.6 LPA (domestic)

Rs 17.6 LPA (domestic)

JBIMS, Mumbai

2019

Rs 3 lakh

Rs 34.2 LPA (domestic)

Rs 20.13 LPA (domestic)

IIM Shillong

2019

Rs 12.68 lakh

Rs 28 LPA (domestic)      

Rs 16.79 LPA (domestic)

IIM Trichy

2019

Rs 10 lakh

Rs 35.15 LPA (domestic)

Rs 20.88 LPA (domestic)

 

Also read:

MBA Placements: Placement Report of Top B-Schools in India

Top Management Institutes in India: NIRF

International salary packages offered at top Indian B-schools

Average salary package of non-IIM graduates in India: NIRF-MHRD Rankings

  

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Updated by Vipra Srivastava

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