- May 16, 2023
- 6 min read
Is An Online MBA Worth The Money?
More business schools are offering online MBA programs, but do they offer the same value as a traditional, full-time MBA?
Is an Online MBA worth it? Some online MBAs cost just as much as full-time MBA programs ©Imperial Business School FB
Business schools are taking more of their learning online. The number of accredited US schools with fully online MBA programs increased by 85% between the 2016–17 and 2021–22 academic years, according to data from AACSB.
Georgetown McDonough, Wharton Business School, and University of College London have now joined the ranks of big-name, elite schools offering online MBA programs. For business schools, going online is a way to reach a global market and diversify program portfolios to meet demand.
For students, it is about flexibility; the opportunity to work, travel, and study at the same time. according to the Association to Advance Collegiate Schools of Business (AACSB), enrollment in online MBA programs has now surpassed that of full-time programs: Nearly 3% more students were enrolled in online MBA programs in the U.S. during the 2020-2021 academic year than in full-time programs.
So, is an Online MBA worth it?
Online MBA vs Full-Time
Patrick Gettleman, a student on Birmingham Business School’s Online MBA, said he could not have studied an MBA without the flexibility the program offered. “Online was the only option that would work for me outside of quitting my job to become a full-time student.”
Solon Magrizos, program director of the Online MBA at the University of Birmingham Business School, said: “Students can apply their learning to their roles in real-time, helping them to accelerate their career from nearly anywhere in the world.”
While Online MBAs may have been considered as secondary to campus-based courses in the past, advances in technology—bringing more interactive learning experiences—mean schools are increasingly offering online MBAs as direct alternatives to the traditional, full-time MBA.
Georgetown University’s McDonough School of Business is offering the Flex MBA Online from this Fall. It is especially designed for working professionals, and graduates will earn the same degree as the in-person program. Sudipta Dasmohapatra, senior associate dean of McDonough’s MBA Programs says that the school has "pulled together the regular MBA strengths and creatively added more flexibility to this online program while retaining quality education and our close-knit community".
Employers are increasingly viewing Online MBAs as equal to Full-Time MBAs. In fact, 54% of global recruiters agree they view online MBA grads and in-person degrees equally, according to the GMAC Corporate Recruiters Survey 2024.
Cost of Financial Times Top 10 Online MBAs
Online vs full-time
When it comes to the most affordable online MBA programs, Birmingham’s Online MBA is among the cheapest at around $30,000 for the two years. Similarly the University of Massachusetts Amherst: Isenberg's Online MBA costs just north of $35,000. Meanwhile at the other end of the scale, the Online MBA offered by Carnegie Mellon Tepper Business School is the most expensive in the Financial Times Online MBA Ranking 2023, at over $140,000.
But with students largely forgoing the campus element of the full-time MBA, is it worth paying high fees for an Online MBA as some of the top colleges require?
One way to consider a program’s worth is by calculating its return on investment (ROI): the money paid for a program and the salary earned after graduation. By this calculation, Online MBAs generally report more modest returns than full-time MBAs.
At IE Business School, full-time MBA students can expect a 101% increase on their salaries three years after graduation, according to the FT. Meanwhile, Online MBA graduates can expect a 44% salary increase. The programs cost $89,500 and $53,700 respectively.
But comparing the ‘worth’ of an online MBA in this way is misleading. Most online MBA students continue to work, and earn a salary, alongside their studies and they don’t have to endure any travelling expenses.
This means that there is no ‘opportunity cost’ for students from taking a year or two off work to pursue the MBA. And why GMAC says it takes alumni of Online MBAs two-and-a-half years on average to recoup their investment compared with three and a half years for full-time MBA alumni.
“The [Online MBA] program's flexibility allows you to work while you study, as the program requires students to have a full-time job to apply. This real-time applicability of what you learn in class can greatly enhance your professional development and contribute to your success in your current role and beyond,” says Andres Lattanzio Collins, global recruitment manager at IE’s Online MBA.
Who is an Online MBA for?
There is more value to an Online MBA than just the salary uplift.
It gives you a professional qualification and experience with remote management skills. This is useful as the modern workplace is highly dependent on virtual interactions, with around 82% of companies adopting remote or hybrid work in the post-pandemic era.
“One of the key benefits of the Global Online MBA is the opportunity to develop leadership skills in a virtual, global environment. The program provides experience in leading diverse teams from different backgrounds and time zones, mimicking today's business world where remote work and virtual teams are common,” Andres says.
You might consider an Online MBA if you’re looking for global network. With the opportunity to complete the degree anywhere in the world you are likely to build truly diverse connections.
“You will benefit from peer-to-peer interaction with a truly global and diverse cohort, enabling you take multiple perspectives on addressing business challenges,” says Karla Litton, business development manager at Warwick Business School.
While there is concern that career opportunities at Online MBAs do not equal full-time MBAs, recruiters are becoming more appreciative of the degree with 60% of global recruiters say they view Online MBA grads and in-person degrees equally. With the help of the involved careers department and through networking, Online MBA grads
go on to work in high-paying industries such as consulting and finance, with world-renowned companies such as Amazon, EY, and JP Morgan.
“As well as range of webinars and online resources, participants gain access to three different elements of 1-2-1 career support; one executive coaching session, one career consultation, and the option to join Warwick Business School’s award-winning mentoring program,” Karla explains.
To choose an Online MBA it's worth taking note of the 'aims achieved' rating in the FT ranking. Most of the FT’s top 10 Online MBAs had a 70% or higher ‘aims achieved’ rating.
This article was first published in June 2019, updated in March 2021, last updated in March 2024
Laura Wise is a former writer at GMAC where she specialized in writing about the global business education market. Laura earned a B.A. in English Literature, American Novel from the University of Edinburgh and an M.S. in Journalism from Columbia University – Graduate School of Journalism.