Yes — more often than not, investing in an MBA pays off. The degree accelerates your career path, sharpens your business skill set, and boosts the confidence you need to lead teams and drive innovation. Whether you picture yourself spearheading a tech venture, guiding a Fortune 500 strategy, or stepping into an executive role, the credential can open doors to higher salary potential and broader career opportunities.

Still, an MBA is a significant commitment of time, money, and energy. Before you dive in, you’ll want to weigh factors like your career goals, financial readiness, and the format of the MBA program itself. This blog breaks down those considerations — both tangible and intangible — so you can decide whether pursuing an MBA degree is truly worth it for you right now.

TL;DR: Should You Get an MBA?

If you’re scanning for a quick answer to the question, “Is an MBA worth it?” keep these key points in mind:

• An MBA program remains one of the most reliable springboards into leadership roles, major career switches, and long-term earning potential — especially when you align the curriculum with your personal career goals.
• Return on investment isn’t fixed; it varies by industry, program quality, and how intentionally you leverage the network you build as an MBA student and later as an MBA alum.
• Here at Texas McCombs School of Business, we see strong ROI thanks to our alumni community, strong employer ecosystem, Austin, Dallas, and Houston’s vibrant market, and variety of educational formats — full-time, evening, weekend, and executive MBA tracks — that let you secure an MBA in a way that works for your career goals and lifestyle.

How To Decide If an MBA Makes Sense for You in 2026

Your decision starts with clarity. Ask yourself what you truly want next: Do you aspire to be in executive leadership, need a sharper business foundation to launch your own venture, or hope to pivot from engineering into product management? Pinpointing those career goals helps you gauge whether an MBA degree, or perhaps a specialized business credential, will move the needle the furthest.

Timing also matters. Consider your current work experience, the job market in your target industry, and broader economic trends. For example, a Full-Time MBA can make sense during an economic slowdown when opportunity cost is lower, while an evening format might be smarter when salaries are rising and you don’t want to pause earning a salary.

Before you submit your MBA admissions materials, weigh your alternatives. Professional certifications, a specialized master’s, or continued on-the-job learning can offer similar growth in some fields. 

Use the following checklist to pressure-test your readiness:

• Personal goals: Are you looking for a leadership role, career switch, or deeper expertise?
• Financial readiness: Look at tuition fees, living expenses, and available financial aid.
• Career stage: Are you a recent graduate, mid-career professional, or seasoned manager?
• Target industries: What sector are you hoping to enter or already in? Consulting, tech, finance, healthcare, or entrepreneurship, perhaps?

If most boxes align with your ambitions, pursuing an MBA could be the catalyst that propels your career opportunities — and confidence — to the next level. And remember, the payoff for getting an MBA is significant. Many MBA graduates experience an impressive pay bump, as well as increased responsibilities and leadership opportunities. 

The Real ROI: What Can You Expect to Gain (and Spend)?

A clear-eyed ROI calculation starts with the numbers. While exact figures vary, analyses consistently show that MBA graduates enjoy sizable salary jumps within three years of finishing their programs. In fact, the Financial Times’ MBA Ranking found that the average base salary after getting a master’s degree from one of the top 100 schools (McCombs’ Executive MBA program ranks 10th among U.S.-based programs) rose by 4.4% over three years. At McCombs, Working Professional MBA graduates saw an 18% pay increase after graduation. 

Our most recent class reported strong median starting salaries and impressive placement rates across consulting, technology, energy, healthcare, and finance — industries that traditionally deliver the highest post-MBA earning potential.

To visualize the upside, consider these typical returns many MBA holders experience:

Salary Acceleration

Median compensation often rises between pre-MBA roles and post-MBA positions, with additional gains over time as you climb into senior leadership.

Career Mobility

A well-regarded MBA program signals readiness for management, making it easier to pivot into new functions, industries, or geographies.

Long-Term Earnings

Over a 20-year horizon, the cumulative income boost can eclipse the total cost of attendance several times over, amplifying your financial trajectory.

Of course, you can’t ignore the costs. Tuition fees for a top MBA degree range widely — and opportunity cost — the salary you forgo if you step away from work — can rival or even exceed tuition itself. While McCombs continues to be one of the more affordable options of the T20 programs, finances are still something to consider. Add living expenses, relocation, and interest on any financing, and the investment becomes substantial. 

That’s why format matters. Stepping out of the workforce for a full-time MBA may make sense if you’re eyeing a dramatic career switch or want to immerse yourself in campus life. This could include changing more than one of the following aspects: industry, function, level, and geography. If preserving cash flow is critical, part-time and weekend MBA options let you earn while you learn. Texas McCombs’ Hildebrand MBA offers full-time, evening, weekend, and executive program formats, each designed to balance professional continuity with rigorous coursework so you can tailor your path without derailing your income.

Beyond Salary: The Intangible Value of an MBA

An MBA’s true power extends far beyond a higher salary line on your pay stub. In classrooms, case competitions, and experiential projects, you’ll sharpen strategic thinking, strengthen management confidence, gain understanding of how to utilize AI as a valuable tool, and learn to make high-stakes decisions under pressure — skills that position you for lasting leadership.

You’ll also gain a global, cross-functional perspective that’s hard to replicate in day-to-day work. Surrounded by classmates from diverse industries and cultures, you tackle real-world business challenges together, discovering how finance, marketing, operations, and analytics interlock to drive organizational success. That holistic lens prepares you to navigate complexity, whether you’re pursuing an executive MBA path or guiding a startup through rapid growth.

Community might be the most underestimated ROI driver. As a McCombs Hildebrand MBA student, you join 1080,000+ McCombs alumni and 25,000+ MBA alumni who span consulting, tech, finance, healthcare, and social enterprise. Texas’s innovation ecosystem adds another layer of opportunity, connecting you to venture capitalists, industry disruptors, and thought leaders in Austin, Dallas, and Houston eager to collaborate. Those relationships translate into mentorship, job opportunities, and lifelong support long after graduation caps are tossed.

Finally, there’s personal growth. The program tests resilience, fuels self-awareness, and expands your worldview. You’ll refine your leadership philosophy through reflection, coaching, and dedicated coursework. By the time you earn your MBA degree, you’ll not only have advanced business skills but also the confidence and clarity to lead teams, drive change, and create impact at scale.

Making the MBA Work for You: Aligning Goals With the Right Program

Your MBA journey should feel purpose-built for your ambitions. Start by matching what you want to achieve — whether it’s breaking into senior leadership, launching a startup, or elevating your analytical skills — to a program that prioritizes those strengths. Our leadership training, innovation coursework, and hands-on learning experiences intersect, giving you the space to experiment, collaborate, and grow.

Format flexibility is another lever you control. Choose the immersive focus of a Full-Time MBA if you’re ready for a bold career pivot, or maintain career momentum through evening or weekend tracks. If you bring substantial executive-level experience, the Executive MBA program surrounds you with peers who share your strategic vantage point, ensuring discussions meet you at your current altitude.

To make the most of your investment, engage early and often. Our Career Management team offers personalized coaching, résumé refinement, and direct connections to more than 800 employer partners. Networking events, case challenges, and internships give you real-time feedback and expand your professional circle long before graduation.

As you weigh next steps, carve out time to reflect on your personal and professional goals, your financial readiness, and the industries that inspire you. When you’re ready to move from exploration to action, explore McCombs’ Hildebrand MBA to find the option that will turn your career goals into attainable milestones.

Visit Texas McCombs MBA to learn more about our programs and upcoming events or take a peek into student life on Instagram. For any inquiries, don’t hesitate to reach out to the MBA Admissions Team. We look forward to connecting with you on your journey to success.

Hook ‘em!

This article was updated on April 8, 2025, to include the 2025 U.S. News and World Report Rankings.

In the world of graduate education, there’s a saying that undergraduate college choices are about the 3 P’s: Price, Proximity, and Prestige. For MBA candidates, we propose a new framework: the 3 R’s – Reputation, Recruiting, and Return on Investment.

Future MBA candidates are inherently more outcomes-focused than undergraduate students. While personal growth remains important, the emphasis includes tangible benefits and measurable results. The fundamental question for future MBA candidates is: Why invest two years and over $100,000 in an MBA program?

Reputation

Reputation is a collective measure encompassing rankings, results, brand recognition, and other key indicators of institutional excellence. Texas McCombs has solidified its position as a top 20 MBA program with impressive national recognition by U.S. News and World Report in 2025:

• #6 Working Professional MBA
• #16 Full-Time MBA
• #12 Executive MBA

But our story goes beyond rankings. We are powered by the University of Texas at Austin brand – a name that resonates globally. The burnt orange of the Texas Longhorns is more than a color; it’s a symbol of excellence that transcends state lines and continents. When people hear “UT,” they instantly connect it with the motto “What starts here changes the world.”

Wherever you go – from the bustling streets of New York to the tech hubs of Silicon Valley, from international business centers in Tokyo to emerging markets in São Paulo – you’ll find that the University of Texas needs no introduction. Our reputation precedes us, speaking volumes about the caliber of education and the potential of our graduates.

These rankings represent our commitment to delivering an exceptional graduate management education across multiple MBA formats, reflecting our academic rigor, innovative curriculum, and consistent performance in preparing business leaders who are ready to make a global impact.

Recruiting

The McCombs MBA is not just about what you learn, but how we help you leverage that learning in the job market. Our recruiting ecosystem is designed to be a powerful career accelerator that goes beyond traditional placement services.

We’ve cultivated a robust network that connects students with over 420  unique employers annually. Our career support is a holistic journey that begins with deep personal exploration and extends to strategic career placement.

Our dedicated Career Education & Coaching team provides end-to-end support that transforms your professional potential:

• A full-time coaching team of eleven professionals entirely dedicated to student success
• Specialized part-time coaches with expertise across various industries, including the most common MBA paths like consulting, tech, and finance, along with specialized paths in industries like energy, private equity, venture capital, healthcare, and manufacturing
• Comprehensive support that spans from self-assessment and market exploration to interviewing and offer negotiation

“The numbers tell a powerful story about our commitment to student success,” Sarah Nathan, Managing Director, MBA Career Education & Coaching said. “In the past year alone, our dedicated career team has conducted over 1,200 individual coaching appointments, supported more than 550 actively job-seeking students, and provided upwards of 200 hours of drop-in coaching sessions across our MBA programs. But what these numbers really represent is our personalized approach – each interaction is an opportunity to help a student refine their career strategy, prepare for crucial interviews, or navigate important decisions. We’re not just helping students find jobs; we’re partnering with them to launch careers.”

Our approach is meticulously designed to support your unique career journey, meaning we offer personalized strength and interest assessments, exploration of diverse industries, functions, and employers, tactical skill development, and specialized preparation programs, technical and consulting case interview training, targeted support for veterans, and industry-specific networking strategies. This comprehensive approach translates into tangible results, with 78.7% of Full-Time MBA Class of 2024 graduates securing positions through school-facilitated sources.

Recruiting Trends

The past three to five years have been a remarkable period of transformation in the job market, and McCombs MBA graduates have emerged as resilient and adaptable professionals. The post-COVID landscape brought an unprecedented demand for top MBA talent, presenting our graduates with exceptional opportunities.

While national MBA hiring has experienced some softening, particularly in consulting and technology due to interest rate changes and other economy-wide factors, McCombs graduates have been strategically positioned to thrive. The Texas business ecosystem has been a critical differentiator, with the state consistently outpacing national job growth and creating dynamic opportunities across multiple industries.

The job market has witnessed a fascinating shift, with a surge of high-paying roles emerging in operations, energy, financial services, and banking – a trend highlighted in the Wall Street Journal’s “Y’all Street” feature about Texas’s burgeoning financial hub.

The Texas Advantage

The Texas business landscape offers unique opportunities that set our graduates apart. With incredibly strong job growth, the state has become a powerhouse for industries including:

• Banking and financial services in the Dallas area
• Energy sectors in Houston and Austin
• Manufacturing and aerospace in Central Texas
• Technology in Austin

A distinctive benefit is that salaries in Texas frequently match those in higher cost-of-living areas, accelerating the payback period for our MBA investment. The robust job market means our alumni are not just finding jobs – they’re thriving. Large companies are drawn to our central hiring departments because of the McCombs brand, while our alumni in leadership positions actively prioritize hiring fellow Longhorns.

Top recruiting partners including Amazon, Bain & Company, Boston Consulting Group, Dell, Deloitte, EY Parthenon, Kearney, McKinsey & Company, Microsoft, PepsiCo, PwC Strategy&, and Walmart actively seek McCombs talent, recognizing the exceptional preparation and skills our program develops.

Return on Investment

When considering an MBA investment, sophisticated candidates think like investors – they want to understand the quantifiable returns. We approach ROI with the same analytical rigor we teach in our finance courses.

The financial value of an MBA can be measured using two key metrics: Net Present Value (NPV) and Internal Rate of Return (IRR). NPV indicates the value created by your investment in today’s dollars, while IRR shows your annual percentage return. When directly comparing two mutually exclusive investment alternatives (such as pursuing an MBA vs. not pursuing an MBA), we can calculate the incremental NPV and IRR to determine which alternative is better, financially.

Using current data from our 2024 graduating class and typical career trajectories, here’s what the investment in a Full-Time MBA looks like (don’t worry – these assumed values can be changed if others apply):

• Average Pre-MBA Salary: $90,000
• Pre-MBA annual increase in Salary: 5%
• Pre-MBA tax bracket: 25%
• Post-MBA Starting Salary (based on average 2024 numbers): $150,000
• MBA Signing Bonus (based on average 2024 numbers): $30,000
• Post-MBA annual increase in Salary: 7%
• MBA tax bracket: 30%

• Tuition: $100,000
• Additional Expenses: $30,000
• MBA Internship income: $25,000

Using these inputs and assuming a discount rate of 6% (implying that you could earn 6% annually on funds if you don’t invest them in an MBA), over a typical 35-year career, your MBA generates:

• Incremental NPV (over not pursuing NPV): $1.56 million in additional value
• Incremental IRR: 21% annual return

Thus, your initial $130,000 investment in an MBA more than pays for itself over time in absolute dollars and it also generates a very attractive incremental rate of return.

We’ve provided a video tutorial and  Excel template  you can use to plug in your own numbers and see your potential returns. These tools will help you make an informed decision about your MBA investment.

Intrinsic Value

Of course, the true value of an MBA extends far beyond financial metrics. Beyond the impressive salary increase and career acceleration, students experience a profound personal transformation. The MBA journey cultivates increased self-confidence, transferable skills like advanced project management and strategic negotiation, and a deeper understanding of personal strengths and career goals. Students develop enhanced relationship management, learn to challenge assumptions and gain the courage to ask critical questions that shape their professional trajectory.

The real magic happens in the relationships and personal growth. Graduates build a rich network of unique, ambitious professionals from varied backgrounds, creating lifelong connections that inspire and challenge them. They expand their worldview, develop greater social and cultural awareness, and discover an enhanced ability to contribute to community causes. As the saying goes, “You are the product of the five people you spend the most time with” – and an MBA surrounds you with innovative, driven individuals who push you to reimagine your potential, transforming the experience from a mere degree into a life-changing journey of personal and professional development.

The Numbers Tell a Compelling Story

The McCombs MBA is more than an educational investment – it’s a transformative financial strategy. Our data reveals a powerful narrative of opportunity, with an average starting salary of $150,000 plus a $3,000 signing bonus, Full-Time MBA graduates see a 67% increase from typical pre-MBA salaries. Over a 35-year career, this translates to an additional $1.56 million in value, with an impressive 21% annual return on investment.

We’re committed to making this investment accessible through multiple funding pathways. Approximately 75% of Full-Time MBA students receive scholarship offers ranging from $5,000 to full tuition. For those exploring additional financial support, federal loans offer fixed interest rates with flexible terms, and our financial services team provides comprehensive guidance on employer sponsorship, military funding, and external scholarship opportunities.

The true ROI of a McCombs MBA extends beyond dollars and cents. While the financial numbers are compelling, the real value lies in the combination of our three R’s: the doors opened by our reputation, the opportunities created through our recruiting relationships, and the demonstrated return on investment. Your MBA is not just an expense, but a strategic investment in your most important asset: yourself.

Ready to get started on your MBA journey? Visit Texas McCombs MBA to learn more about our programs, application components, deadlines, and upcoming events, or take a peek into student life on Instagram. Please reach out to the MBA Admissions Team with any questions.