MBA ROI calculator excel

Hello sir I want to know about the return on investment scheme of MBA program of MIT and Stanford so please provide me suitable information about the same.

[Shaleen]

MBA ROI Based on Net Present Value. MBA Aspirants should calculate the return on investment before choosing one program over the other.

Net Present Value

Net present value is the net value of cash inflows and outflows for a period of time based on the current value.

The definition by itself can be a little confusing but when you calculate Return on investment on an MBA program that can last anywhere between 1 year or 2 years, the investment and returns has to be calculated at current value.

MIT vs Stanford

Compare MIT vs Stanford and find out which program offers a better return on investment.

The data is based on the latest comparison between MIT Sloan and Stanford MBA program.

Added the latest tuition fee for Stanford and MIT, and would use the same numbers for 2nd year for easier calculation.

MIT- $88,949

Stanford- $93,866

For the post-MBA Salary, looked into MIT vs. Stanford, and the median base salary is

MIT - $1,19,000

Stanford - $1,25,000

To summarize the expense and return for Stanford and MIT, here is a summary of post-MBA Salary for a period of three years with 10% increment every year.

MIT vs Staford ROI Calculation

Let us represent the cash flow in a time series for MIT Sloan.

We will sum up the Expense for two years and calculate the NPV for 1st year to make the calculation easier.

To calculate the ROI, we need to find the pre-MBA Salary for an undergraduate with 3-5 years of experience.

We have averaged the Pre-MBA Salary as $77,000 for MIT and Stanford.

Total Opportunity Cost = Pre-MBA Salary + Pre-MBA Salary*10% Increment
= $77,000 + $ 84,700
= $161,700

MIT Sloan

Total Cost = Expense + Opportunity Cost