Bloomberg ROI Calculator: Getting An MBA In The U.S. Is Now Less Profitable

The payoff from a U.S. MBA has slipped again. A new analysis by Bloomberg shows that the degree’s return on investment fell this year as costs rose faster than salary gains — and the edge MBAs enjoy over non-MBAs continued to narrow.

According to Bloomberg’s latest update of its Business School ROI Calculator, which draws on surveys of more than 9,500 students and alumni, the typical MBA return is now 12.3% annually over the decade after graduation. That’s down from 13.3% last year — and below the S&P 500’s 14.6% return over the past 10 years ending August 31.

The single biggest reason for the decline: the shrinking “pay edge.” Respondents reported pre-MBA salaries that were 6.2% higher than last year’s, while expected post-MBA pay increased only 1.7%. In short, the compensation boost graduates typically get for the degree is fading.

PAY EDGE SHRINKS, COSTS CLIMB

The fading ROI of B-schools’ flagship degree program comes as the broader U.S. workforce also sees rising pay. Federal Reserve data shows high-skilled workers’ salaries grew 4.7% in the year ended July 31.

At the same time, MBA costs keep climbing. Tuition and related expenses were up 2.4%, with many students borrowing at higher rates. Overall, Bloomberg calculates the total investment in a U.S. MBA jumped 6.8% this year to nearly $300,000. That includes not only tuition and fees but also the forgone income of stepping out of the workforce.

The median MBA student in Bloomberg’s analysis reported tuition and living expenses of $131,303, forgone income of $156,104 over 21.8 months away from work, and $10,691 in loan interest — a total investment of $298,098. On the other side of the ledger, the typical graduate earns an additional $912,787 over the following decade, plus a $30,148 signing bonus that compounds to about $40,273 when invested. The result: a 10-year net ROI of $654,962, or 12.3% annually.

BEST ROI: KENTUCKY GATTON; WORST: MIAMI HERBERT

At the top of Bloomberg’s ROI ranking is the University of Kentucky’s Gatton College of Business and Economics, where the one-year accelerated MBA program posted an ROI of 20.6%, with a net 10-year return of $486,000. Gatton’s 44-credit program is structured for efficiency: students complete it in 12 months, limiting the income they forgo compared to traditional two-year programs. The program offers small cohort sizes and a strong emphasis on experiential learning, including consulting projects with regional employers. Lower tuition and a shorter time out of the workforce give Gatton a built-in advantage when it comes to ROI.

At the other end of the spectrum is the University of Miami’s Herbert Business School, which posted the lowest ROI in Bloomberg’s calculator: 7.1%, with a net 10-year return of just $264,000. Miami Herbert offers a traditional two-year MBA as well as specialized tracks in areas like real estate and international business, drawing heavily on the city’s global finance and Latin America connections. Its high tuition and cost of living, coupled with longer time away from work, weigh heavily on its ROI calculation.

BIGGEST DECLINES & SURPRISE GAINS

Among schools included in both this year’s and last year’s calculator, four out of five saw ROI declines. Syracuse University’s Whitman School of Management experienced the steepest drop: from more than 21% a year ago to just 13.3%. Bloomberg attributes the decline mainly to a collapsing pay edge — last year’s Whitman graduates typically quintupled their salaries, compared with just a tripling in this year’s survey.

By contrast, Tulane University’s Freeman School of Business saw the largest ROI gain. Its ROI more than doubled to 9.9%, fueled by a 27% rise in post-MBA median compensation (to nearly $129,000) and a near-10% decline in expenses.

CONSULTING, FINANCE STILL PAY THE MOST

Not surprisingly, the industries MBAs enter make a big difference in their pay edge. Bloomberg’s survey shows consulting, finance, and real estate remain the most lucrative fields, with median compensation well above $176,000. Across all industries, the median MBA salary and bonus came to $176,873.

Tech, however, continues to attract the most graduates: almost one in four respondents reported entering the sector, even though it pays less than the traditional MBA pipelines. At the other end of the spectrum, MBAs who take roles in government, nonprofits, and education report compensation closer to $100,000 or less — far below the overall median.

HOW BLOOMBERG CALCULATES ROI

Bloomberg’s ROI Calculator applies the same principles investors use in financial markets. It measures profit relative to initial principal, then annualizes the result to show compounded 10-year returns. For MBAs, the “investment” includes tuition, room, and board, as well as forgone salary during school and interest on student loans. The “returns” come mainly from the pay edge: the difference between post-MBA and pre-MBA salaries over 10 years, adjusted for raises and inflation, with signing bonuses factored in as invested capital.

The analysis is based on Bloomberg Businessweek surveys of thousands of MBA students and alumni from 68 U.S. programs, covering graduates from 2016 to 2025. Responses were screened to remove statistical outliers and adjusted for U.S. inflation.

THE BOTTOM LINE

The bottom line is that the MBA remains a profitable degree, with double-digit projected returns for most graduates. Bloomberg’s data puts the median ROI across all 68 U.S. programs at 12.6%, producing a median 10-year net gain of more than $650,000. 

But the value proposition is getting tighter as pre-MBA salaries rise and program costs push toward $300K — the latter because of several factors, including loan interest. The Department of Education’s unsubsidized graduate loan rate for 2025–26 is 7.94%, the highest in years; Bloomberg’s model adds interest payments, at a median $10,691 over 10 years, to the cost of the degree. For prospective students, the numbers underscore how much both program choice and post-MBA career path determine whether the degree truly pays off.

MBA ROI: BEST TO WORST IN THE U.S., ACCORDING TO BLOOMBERG

Source: Bloomberg Businessweek

DON’T MISS THE MBA PRICE TAG: 21 OF THE TOP 25 U.S. B-SCHOOLS NOW CHARGE $100K A YEAR OR MORE and RANKING MBAs BY RETURN-ON-INVESTMENT

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