What is MBA Return on Investment (ROI)?
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 MBA ROI, how it is calculated and what impact it has on your career. Also get the list of college for MBA with highest ROI.
What is MBA ROI?
What is MBA ROI? It is important for every management aspirant to know MBA ROI, so that they can choose the best suited B-School for pursing the course. 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. The MBA course fee at a college with good infrastructure and faculty is minimum INR 10 lakh. The MBA fee goes up to as high as 30 lakhs+.
While on an average each student spent nearly INR 7-10 lakh on a two-year MBA programme, the salary offered after the course does not always match the investment. A majority of MBA graduates have difficulty in finding jobs because salary offered to them is not enough to repay education loan they had taken for the programme.
Also Read:
- What is MBA ROI: How to calculate best ROI for MBA?
- Factors Affecting MBA ROI
- Factors to Consider for Calculating MBA ROI
- Best ROI - MBA Colleges in India
- Why ROI is Important?
What is MBA ROI: How to calculate best ROI for MBA?
The right way to calculate the MBA ROI i. e. Return on 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 MBA Return on Investment calculation should also take into account pre-MBA and post-MBA work experience, EMIs, market conditions and so on.
The formula for ROI can be understood as: (profit minus cost) / cost.
Example:
If your pre-MBA salary is INR 500000, your post-MBA salary is INR 1500000, and the total cost of the MBA is INR 1200000, then:
ROI = (1500000 - 1000000) x 100 = 41.66 %
1200000
Best ROI on MBA can be considered the one, in which a candidate can get the amount invested in the shortest time from their salary/job secured on the basis of the degree. 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 MBA ROI. Among top MBA colleges in India, FMS Delhi, TISS Mumbai and IIT Bombay (SJMSOM) have the best MBA ROI.
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While calculating the ROI of an MBA course, one should take into account three aspects:
Cost of MBA: this includes course fee, living expense and lost income (opportunity cost of not working for the course period).
Financial Return: The ROI incluses salary hikes, bonus and incentives and career advancement opportunities after completing the degree.
Strategic Return: Benefits like wider career prospects, industry networking, upskilling and personal growth for long term success.
Factors Affecting MBA ROI
There are some factors that affect MBA ROI year on year. The profitability of an MBA programme, is measured in long term. One needs to keep the following mind.
- Tuition fee: The average fees of the course.
- Starting salary: Companies often offer decent starting salaries in campus placements.
- Signing bonuses: Some colleges may offer signing bonuses. The amount can help in study load repayment.
- Salary increase rate: On an average, it is seen that the minimum salary increase every year is atleast 3 percent.
- Opportunity cost: If a candidate decides to drop a year after completing MBA, they tend to lose money in loan repayment as well as lose prospective income.
Factors to Consider for Calculating MBA ROI
Before choosing an MBA college to pursue the degree one should evaluate the ROI prevent financial loss. One usually takes education loan to pursue MBA. The best ROI is when they can repay the loan in the shortest time after completing the programme.
1. B-School Ranking: Top B-schools have higher placements with higher salaries. Mid-tier and low-tier colleges may not get you the best ROI if their fee is high but placement rate is not good.
2. Career Goals: Evaluate your career goal viz. the MBA degree. Your decision to pursue MBA should directly support your career in the long term.
3. Cost of Living: College expenses and the cost of living in that city is an important consideration while evaluating the MBA course/college.
4. Financial Aid: Evaluate MBA fees and loan options to understand how much financial burden will you have to handle during and after completion of the course. And how quickly can you recover from it with your salary.
5. Market Conditions: External factors like job market or economic condition are important considerations while evaluating ROI. Unpredictable market conditions can cause major dent.
The hostel fees of IIM Rohtak depend on the type of accommodation. As per an unofficial source, IIM Rohtak hostel fees are INR 25,000 per academic year. However, this charge does not include mess and other charges. As per the 2025 brochure available on the official website of the institute, some of the additional charges are provided below, which will be paid by students who opt for hostel accommodation. Electricity, maintenance, and other charges will be paid by the students as per the usage.
- Hostel usage charge: INR 36,000 (Academic year)
- Mess charge: INR 53,000 (Academic year)
Several components add up to the total fee for MDI Gurgaon courses. Candidates can get in touch with the MDI Gurgaon admission office for the complete fee structure. The PGDM specialisation-wise tuition fee is further mentioned in the following table:
Course | Total Tuition Fee |
|---|---|
PGDM IB + MIM | INR 26 lakh |
PGDM Business Analytics | INR 21.65 lakh |
PGDM | INR 26.2 lakh |
PGDM-HRM | INR 18.67 lakh |
Online PGDM | INR 8.95 lakh |
NOTE: The mentioned fee is taken from the official website/sanctioning body. It is still subject to changes and hence, is indicative.
Best ROI - MBA Colleges in India
Here’s a list of a few top B-Schools in India, their fees and salary package offered in campus placement, to compare and find out MBA with highest ROI. Take a look:
| Institute |
MBA/PGDM Fees |
Highest package offered* |
Average Package offered* |
|---|---|---|---|
| INR 25.00 lakh |
INR 1.46 CPA |
INR 34.45 LPA |
|
| INR 24.50 lakh |
NA |
INR 35.92 LPA |
|
| INR 27.00 lakh |
1.20 CPA |
INR 35.07 LPA |
|
| NR 20.50 lakh |
INR 72.02 LPA |
INR 29.20 LPA |
|
| INR 20.70 lakh |
INR 65.00 LPA |
INR 30.00 LPA |
|
| INR 21.17 lakh |
INR 1.00 CPA |
INR 25.68 LPA |
|
| INR 2.00 lakh |
INR 1.23 CPA |
INR 34.10 LPA |
|
| INR 26.00 lakh |
INR 63.30 LPA |
INR 24.20 LPA |
|
| INR 21.52 lakh |
INR 85.40 LPA (international) INR 76.50 LPA (domestic) |
INR 29.10 LPA |
|
| INR 28.00 lakh |
INR 75.00 LPA |
INR 29.89 LPA |
|
| INR 21.00 lakh |
INR 81.00 LPA |
INR 33.00 LPA |
|
| INR 25.00 lakh |
INR 67.70 LPA |
INR 25.30 LPA |
|
| INR 6.10 lakh |
INR 87.12 LPA |
INR 26.12 LPA |
|
| INR 17.50 lakh |
INR 71.50 LPA |
INR 26.10 LPA |
|
| INR 19.50 lakh |
INR 43.69 LPA |
INR 19.43 LPA |
|
| INR 17.90 lakh |
INR 48.25 LPA |
INR 19.27 LPA |
|
| INR 17.20 lakh |
INR 37.80 LPA |
INR 18.69 LPA |
*The salary figures mentioned in the table are as per the latest placement data avaiable.
The cost of IIM Indore MBA ranges between INR 17.30 Lacs and INR 35 Lacs as per unofficial sources. However, the fee structure given on IIM Indore official website, the total fee of the PGP course is inclusive of the course fee, alumni fee, medical insurance and mess deposit.
Given below is fee structure of IIM Indore MBA fees, as per the official website for 2023-25 batch:
| Particulars | Total Amount (for 2 years) |
|---|---|
| Course fee | INR 20 lakh |
| Alumni fee | INR 23, 600 |
| Medical Insuarance | INR 2,716 |
| Refundable Caution Deposit | INR 1 lakh |
| Mess deposit | INR 1.08 lakh |
The total tuition fee for NMIMS School of Business Management MBA ranges between INR 6 lakh and INR 24 lakh. Check below fee for some of the MBA specialisations:
| Course Name | Total Tuition Fee |
|---|---|
| General | INR 11.95 lakh |
| Pharmaceutical Management | INR 19.2 lakh |
| Human Resources | INR 19.2 lakh |
| Business Analytics | INR 24.04 lakh |
| Healthcare Management | INR 19.2 lakh |
Why ROI is Important?
As we all know, MBA is an expensive degree and the ultimate goal is a financially rewarding career. One cannot spend over INR 10,00000 on a degree that cannot ensure a job with satisfactory salary. Choosing an MBA degree has to be an informed decision. The MBA college you choose must fit in your budget and ensure a good start to career. If you are willing to go over budget, the course/college you choose must compensate effectively. The ROI can help you to assess the financial commitment required for the degree. Working professionals need to evaluate the MBA ROI simply to ensure the income loss incurred during the course, is recovered appropriately and in time.
Also read:
- IIM Placements - Highest Salary Package & Top Recruiting Companies
- MBA Placements: Placement Report of Top B-Schools in India
- Average salary package of non-IIM graduates in India: NIRF-MHRD Rankings
- Top Management Institutes in India: NIRF 2024
- International salary packages offered at top Indian B-schools
FMS Delhi MBA fee include different components, some of which have to be paid annually, semesterly, etc. The MBA total tuition fee is INR 2 lakh. The mentioned fee is taken from the official website/sanctioning body and is subject to change. Therefore, it is indicative.