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ThinkMBA ROI Methodology
Our Purpose
ThinkMBA’s Real ROI framework exists to help prospective MBA and Executive Education candidates make better-informed decisions in an environment where tuition costs are rising, career paths are less linear, and marketing narratives often outweigh transparent data.
Rather than ranking schools by prestige alone, our methodology focuses on return relative to time, cost, risk, and career intent.
Our goal is not to identify a single “best MBA,” but to clarify which programs deliver value for which profiles — and under what conditions.
What We Mean by ROI
At ThinkMBA, ROI is defined as the combined financial and career value generated by a program relative to its total cost.
This includes:
- Direct financial returns (salary, bonuses)
- Time-based returns (speed of payback)
- Career mobility and optionality
- Risk exposure and trade-offs
We deliberately avoid narrow definitions of ROI that focus only on first-year salary.
Core ROI Dimensions
Each ThinkMBA Real ROI article evaluates programs across five core dimensions.
1. Total Investment
We assess the true cost of attendance, including:
- Published tuition and fees
- Estimated living expenses for the program duration
- Opportunity cost (forgone salary during study)
Where programs differ in length (e.g. one-year vs two-year MBAs), opportunity cost is weighted accordingly.
Why it matters: Two programs with similar tuition can have very different ROI outcomes once time out of the workforce is considered.
2. Compensation Outcomes
We focus on median, not maximum, outcomes to avoid distortions.
Metrics reviewed include:
- Median base salary
- Median signing or performance bonus (where reported)
- Sector and geographic salary variation
We normalise compensation figures where possible to account for:
- Regional pay differences
- Currency fluctuations
- Sector concentration (e.g. consulting-heavy cohorts)
Important: We treat reported “total compensation” figures cautiously, as they often reflect select geographies or roles.
3. Payback Speed
Payback speed estimates how long it typically takes a graduate to recover their total investment.
Our modelling considers:
- Pre-MBA salary bands
- Post-MBA median compensation
- Program duration
Payback ranges are expressed conservatively (e.g. 2.5–4 years rather than a single point estimate).
Why it matters: Faster payback reduces financial risk, particularly in volatile hiring markets.
4. Career Mobility & Optionality
ROI is not purely financial. We evaluate how effectively a program enables:
- Sector switches
- Function changes
- Geographic mobility
Indicators include:
- Career switch intent and outcomes
- Strength of recruiting pipelines
- Alumni presence across regions and industries
Programs that support multiple credible post-MBA paths score higher on optionality.
5. Risk & Trade-Offs
Every MBA involves trade-offs. We explicitly surface risks such as:
- Visa and work authorisation constraints
- Hiring cyclicality in dominant sectors
- Program intensity vs exploration time
- Geographic concentration of outcomes
Rather than penalising programs for risk, we contextualise who the risk applies to.
Data Sources
ThinkMBA ROI analyses draw on:
- Official school disclosures and tuition pages
- Employment reports and class profiles
- Career Development Centre statistics
- Third-party data (e.g. PitchBook, publicly cited rankings)
- Alumni interviews and qualitative insights
Where data is unavailable or aggregated, we state assumptions clearly.
Editorial Independence
ThinkMBA maintains a strict separation between editorial analysis and commercial activity.
- ROI articles are written independently of sponsorship arrangements
- Schools do not preview, approve, or influence verdicts
- Sponsored content is clearly labelled and never mixed with ROI analysis
This independence is central to reader trust.
Star Ratings Explained
Our star ratings (⭐️ to ⭐️⭐️⭐️⭐️⭐️) reflect overall ROI alignment, not academic quality alone.
Ratings consider:
- Speed of ROI
- Breadth of career outcomes
- Risk-adjusted value
- Fit for the typical candidate profile
A lower rating does not mean a weak program — only that ROI is more conditional or profile-dependent.
What This Methodology Does Not Do
To avoid false precision, our methodology does not:
- Guarantee individual outcomes
- Predict short-term hiring cycles
- Rank schools in a single league table
- Replace personal due diligence
MBA outcomes are inherently individual.
A Note to Readers
ThinkMBA’s Real ROI framework is designed to inform, not persuade.
We encourage readers to:
- Compare multiple programs
- Speak directly with alumni and employers
- Reflect honestly on career goals and constraints
The best ROI decision is the one that aligns with your strategy, not someone else’s success story.
