What is the average MBA salary?

Written by

Zina Kumok,

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Published on August 15, 2024 | 3 min read

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Key takeaways

The average MBA graduate can expect to make six figures as their base salary.
The average MBA salary varies by state, with Washington, New York, Vermont and California earning the highest wages.
Your exact salary will depend on your location, your job role and experience.

If you’re considering or pursuing a Masters of Business Administration (MBA) degree, the investment could be well worth it. An MBA is one of the best-paid graduate degrees you can receive. The national average MBA degree salary ranges from $98,000 to $165,000, but many MBA-related jobs have a much higher average. How much an MBA graduate earns depends on factors like where they live, where they graduated from and what kind of industry they work in.

The average salary for an MBA graduate

According to the Graduate Management Admission Council’s 2024 Corporate Recruiters Survey Report, the average salary for U.S. MBA graduates is $120,000, whereas PayScale estimates the average salary for an MBA graduate is $98,000 and ZipRecruiter estimates it at $165,372.

As averages vary, where you live, which school you attended, and your exact job can impact your salary as an MBA graduate.

MBA salaries by state

Location plays a big role in how much you can expect to earn. ZipRecruiter data shows that the following states have the highest average salaries for MBA graduates:

Washington:$200,825
New York: $179,210
Vermont: $175,826
California: $171,250
Maine: $166,549

On the other hand, the following states have the lowest average salaries:

Florida: $121,108
Arkansas: $124,272
West Virginia: $126,768
Kentucky: $130,760
Michigan: $130,795

Highest-paying jobs for MBA graduates

There are a variety of jobs that MBA graduates are qualified for, and the salary range can vary greatly depending on the industry.

PayScale reports the following average salaries for some of the highest-paying MBA jobs:

Chief Executive Officer: $197,836
Chief Operating Officer: $171,008
Chief Financial Officer: $161,020
Information Technology Director: $141,289
Senior Product Manager: $133,307
Finance Director: $130,962

Average MBA salary after five years

The average MBA salary after three to five years from graduation is $151,951 and $172,469, according to 2021 data from Forte Foundation. Once you hit the six- to eight-year mark, you can expect to make between $174,387 to $194,460. After nine years, you could make between $179,159 and $241,607. Knowing these averages will help you determine if you’re being compensated fairly for your experience and role.

Factors that affect average MBA salary

Your exact MBA salary is set based on a variety of factors, and research shows that they can significantly affect how much you get paid. Factors include:

College attended. Different MBA programs may foster more knowledge and skills that allow you to go after high-paying roles at the companies you apply for. Accredited programs will typically hold more weight than nonaccredited programs.
Location. Where you live will determine the industries available for you to work in, with some areas offering roles in higher-paying industries than others. Consider the average MBA salary for your state of choice when applying for jobs.
Job role. MBA graduates take on a wide variety of roles from product developers to financial officers or chief operating roles. The higher up the ladder you climb, the higher your salary will be.
Experience. How many years you’ve spent in your role directly correlates with how much you get paid. But even new MBA graduates can make six figures.
Gender. Forte Foundation’s research shows that there is a gender disparity in the amount you’re paid — women get paid disproportionately less than men. Women can use such research to advocate for higher pay that is aligned with what their male counterparts are getting paid.

Is an MBA worth it?

Earning an MBA can be an expensive undertaking. Many graduates leave school with debt, and most degree programs last two years. That’s a significant time and monetary investment, especially considering that you may not be able to work while enrolled.

That said, data shows that having an MBA degree sets you up for significantly higher salaries. The Graduate Management Admission Council’s 2024 Corporate Recruiter Survey Report shows that U.S. MBA graduates’ starting salaries are roughly 1.75 times higher than those of bachelor’s degree holders.

Whether an MBA is worth it depends on your career aspirations and how much debt you’ll incur for your program. Before applying, research the school’s rankings, post-graduation employment rate and average graduate student loan amount. Then weigh the total cost against the expected salary for your location and desired career path.