This indicator is designed to show which business schools are providing strong value for money to their students. We look at a 10-year return on investment, comparing average 10-year post-graduation salaries against average cost of investment in obtaining the business master's degree.
Average 10-year post-graduation salary is estimated using the average post-graduation first-year salary provided by schools (or country-level averages based on Employer Survey responses) and the following factors of salary acceleration over the next 10 years (on the top of a natural increase per annum):
- How prestigious a business school is, according to the QS Employer Survey.
- If a business school provides some extra opportunities for students that may positively influence the salary in the first years of work (e.g. internships or international trips, as per data submitted by schools)
- How many graduates set up their own companies after graduation, as per data submitted by schools (this is to account for the slower, but potentially much higher return for those starting a business)
- For Global MBA only – The average annual bonus companies provide to graduates, according to Employer Survey responses
Average cost of investment covers the following components:
- Tuition fee of the business masters' program, as per data submitted by schools
- Cost of living in the city where the school is located, approximated using Mercer’s Cost of Living city ranking
- Forgone salary (opportunity cost) based on the average salary before enrollment and length of study, as per data submitted by schools
Data definitions:
| Tuition Fees | The annual fee required for the tuition. Other miscellaneous fees are not included. |