You get an MBA because you want to gain skills and knowledge – and get tangible returns on your investment. Those returns have typically included a salary bump, a leg up on a promotion, or access to a network that helps you move up. Does an MBA still deliver returns on its initial investment of time and money today?
MBA Graduate Outcomes | Average Across Canada |
---|---|
Base salary | $100,854 |
Signing bonus | $16,419 |
Employment rate (3 months after graduation) | 85% |
School-facilitated internships | 67% |
School-facilitated employment | 63% |
Data is based on 2022/2023 graduating class data
How to calculate the financial return on an MBA
When determining the ROI of an MBA, the initial calculation is typically financial. The average cost of a two-year MBA degree in Canada is $46,948, according to data on CourseCompare. Meanwhile, CourseCompare’s analysis of MBA graduate employment reports from Canada’s top MBA programs found an average post-MBA base salary of $100,854 and a signing bonus of $16,419. About 85 percent of graduates landed a new job within three months.
Based on these estimated costs and earning, prospective MBA candidates can make quick determinations of the potential return, based on what they’re currently earning.
There is no Canada-specific MBA ROI calculator out there, but Shamez Kassam, a financial advisor in Calgary, says it’s easy enough for prospective learners to calculate on their own. Take into account your current and projected salary; all program expenditures including tuition, housing, and living expenses; the opportunity cost of not working for a year or two (if you’re enrolling in a full-time program); and future employment projection, which could include signing bonuses. This calculation should provide a payback period estimate. Time value of money should be factored in as well.
You can use the average base salary for an MBA grad, or the average salary for MBA grads in your specific industry/job function.


How to get the most value from an MBA
Today, the value of an MBA goes far beyond remuneration alone. When Marcela Killin of Sundridge, Ont. decided to get her Executive MBA from University of Fredericton in 2020, she knew she was making an investment in both her immediate prospects and her longer-term career goals. “The biggest return is that the learning allows you to operate at a more strategic level,” she says.
Killin works for the Nurse Practitioners Association of Ontario, and on the side runs a business consulting service called Complexly Simple. Since she graduated in 2022, she was promoted to Director of Strategy and Operations at NPAO, and she got a raise. Her consulting business, what she called a “small hobby” previously, grew as well post-MBA; she was able to triple her hourly fee. Killin says that within two years her increased income had paid off the costs of acquiring her MBA.
While the financial ROI of an MBA can be helpful for those who lean on practical and tangible considerations, “there are a lot of intangibles,” says Elena Giorgetti, a career coach and organizational consultant in Vancouver. “We all want to make more money. But for people who are very fulfilled in their career, it’s not just because of the dollar value.”
In talking to MBA candidates, Giorgetti says some focus on “generic” goals – wanting to move up the ladder, get into a leadership position, and manage a team. Students are more successful in achieving those ultimate goals, she suggests, when they focus on specific and immediate objectives such as developing skills for strategic thinking, or gaining a better understanding of how an organization works from multiple perspectives, all in the service of driving results.
“It’s more about how they can make a larger impact on a business,” she says.
Within two years of graduating from the University of Fredericton’s EMBA program, Marcela Killin’s increased income had paid off the costs of acquiring her degree.
Looking at payback periods and annual returns alone makes for an inadequate analysis, agrees Kassam. While the direct benefits of an MBA may be most evident in salary bumps, the ultimate advantages revolve around personal growth, job satisfaction, and career flexibility.
“When people go to business school, the decision may initially have been made on a dollars and cents basis. But as you go through your career, that’s less important. The training you receive lets you pivot into different areas and maybe careers that you didn’t think you would go into originally,” he says.
He speaks from experience as an MBA graduate himself. Kassam was an occupational therapist for five years before earning an MBA in accounting and finance from Columbia University. He went into investment banking, which was an immediate goal, but points to more far-reaching benefits of the degree.
“It’s about the broader set of tools you put in your toolbox,” he says. “One of the nice things about an MBA is it will give exposure to different areas in business, which can be useful regardless of the path you take.”
Prior to her MBA, Killin held a degree in business process management from Brazil, where she’s from, along with a certificate in public policy administration from the University of Guelph. She wanted to bolster her Canadian credentials, and also recognized that the people filling the senior-level jobs she aspired to all had graduate degrees.
Why an MBA as opposed to another designation? Killin wanted the ability to take a multidisciplinary approach to management.
“I thought the MBA was more robust in terms of what it covers,” she says. “We took a deep dive into everything, putting together all of the elements of management into a broader perspective.”
The biggest takeaway for her is having more strategic insight. She says that has translated into greater confidence at work and more credibility. Killin now works more closely with the senior leadership team. “I feel a lot more prepared to raise my hand at work.”
With an MBA, ‘your network is your net worth’
To assess the value of an MBA, you should also consider the nature of the program, and how it aligns with your goals. Does the program create networking opportunities within and beyond the program? Does the school facilitate internship placements or post-grad employment opportunities? It’s worth exploring the school’s industry partnerships and regular recruiters.
“The right way to look at the value of an MBA is, how will I expand my network and how will I open my eyes to new pathways?” says Aaron Collins, a partner at Collins Executive Search in Toronto.
That makes the reputation of the school another integral part of the calculation. “In my world, it’s not so much whether you have an MBA, but where did the MBA come from?” he says.
School | Average base salary | Average signing bonus | Employment rate (3 months post-graduation) | Top 3 employer industries |
---|---|---|---|---|
Alberta School of Business (University of Alberta) | $93,252 | Data not available | 85% | Public Sector/Health (32%); Consulting (21%); Energy (20%) |
Asper School of Business (University of Manitoba) | $88,298 | Data not available | 75% | Finance (17%); IT (13%); Health (13%) |
DeGroote School of Business (McMaster University) | $82,464 | $8,782 | 95% | Finance (34%); Consulting (17%); Technology (11%) |
Haskayne School of Business (University of Calgary) | $117,000 | Data not available | 91% | Data not available |
Ivey School of Business (Western University) | $131,282 | $21,284 | 89% | Consulting (51%); Finance (19%); Government (6%) |
John Molson School of Business (Concordia University) | $98,051 | Data not available | 93% | Finance (14%); Consulting (11%); Technology (11%) |
McGill Desautels Faculty of Management | $100,012 | $19,583 | 73% | Consulting (37%); Consumer Products (13%); Finance (32%) |
Rotman School of Management (University of Toronto) | $123,724 | $21,163 | 81% | Finance (34%); Consulting (31%); Legal (7%) |
Schulich School of Business (York University) | $91,359 | $18,188 | 82% | Finance (28%); Consulting (11%); Legal (8%) |
SFU Beedie School of Business | $85,400 | $18,500 | 90% | Real Estate (23%); Finance (23%); Technology (14%) |
Smith School of Business (Queen's University) | $101,385 | $13,386 | 96% | Finance (38%); Consulting (28%); Technology (10%) |
UBC Sauder School of Business | $98,020 | $10,469 | 72% | Technology (24%); Consulting (19%); Energy (13%) |
University of Fredericton* | $135,000 | Data not available | 94% | Health Care (17.5%); Technology (17.5%); Business/Finance (8%) |
Data is based on 2022/2023 graduating class data
*University of Fredericton’s data represents its MBA and EMBA graduates from 2024. Employment data represents employment rate of UFred MBA/EMBA grads within one year of graduation.
The connections made during the program can be most valuable, Collins says. “I think MBA students should view their time in the program as a premier networking/relationship-building opportunity with future partners, collaborators and champions.”
Kassam agrees. “Having the right connections can propel a career to heights that would not otherwise be possible. In the end, a little luck helps too. But it’s harder to create luck without the experience of the program and meeting classmates and professors.”
How do recruiters and hiring departments look at an MBA? As just one part of the whole, says Collins. “It’s a holistic picture, and the most important piece is always the work experience.”
While an MBA is beneficial, Collins says no single program is the be-all, end-all. He offers the metaphor of a plate of fries with ketchup. The fries are the work experience – great on their own, but enhanced by the “ketchup” of an MBA.
“When it comes to a person’s career, I don’t think people should view an MBA as a silver bullet to some dream job,” Collins says. “It’s a big investment and the short-term ROI might not always meet people’s expectations if they’re short on fries.”
In other words, don’t let your MBA become letters on a resume; make the most of what you learn from your courses and your cohort.
“What is most important is what you learn in the program,” Kassam says. Those core lessons and ways of thinking are transferrable in any setting or venture, he explains.
“At some point everybody is going to be an entrepreneur, whether you’re running a business or working for a company. You’re selling yourself and your personal brand. You’re the CEO of the business of you. So an MBA is valuable.”
Is an MBA worth the investment?
If you choose a program with a solid reputation, dedicate yourself to making the most of the learning opportunities by developing strategic thinking and decision-making skills, and network to set yourself up to lead alongside top executives – then yes, the ROI of an MBA will far exceed your upfront investment.
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