MBA Cost in the USA: Unraveling Tuition and Living Expenses

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Pursuing a Master of Business Administration (MBA) in the United States is a transformative journey that can shape your career and open doors to unparalleled opportunities. Yet, it’s no secret that this endeavor comes with a significant price tag. The total cost of an MBA in the USA encompasses tuition fees, living expenses, and more.

MBA Cost in USA

In this article, we delve into the financial aspects of earning an MBA, exploring the key components that contribute to the total cost, dissecting tuition fees, analyzing living expenses, and offering insights into how to make an informed financial decision that aligns with your career goals and aspirations.

Explore the comprehensive breakdown of MBA costs in the USA. From Stanford GSB’s $250,854 to Indiana Kelley’s $161,661, understand the financial landscape of pursuing an MBA. This in-depth analysis covers tuition fees and living expenses, offering valuable insights for prospective students.

The Tuition Fee at Top US Business Schools

S. No.Business School2023 Tuition2022 Tuition2021 Tuition2020 Tuition2019 Tuition5-Year Change5-Year %
1Wharton$87,370$84,874$76,000$74,500$74,500$‎ 12,87017.30%
2Columbia Business School$84,496$80,542$77,376$77,376$77,376$‎ 7,1209.20%
3MIT Sloan$84,200$80,400$78,954$77,168$77,168$‎ ,0329.10%
4Yale SOM$82,700$79,000$74,500$72,350$72,350$‎10,35014.30%
5New York Stern$82,326$82,326$78,700$76,780$74,184$‎8,14211.00%
6Northwestern Kellogg$81,015$78,276$76,368$74,871$73,404$‎7,61110.40%
7Chicago Booth$80,961$77,841$74,919$73,440$72,000$‎8,96112.40%
8Cornell Johnson$79,910$76,690$74,026$71,940$69,440$‎10,47015.10%
9Stanford GSB$79,860$76,950$74,706$74,706$73,062$‎6,7989.30%
10Dartmouth Tuck$77,520$77,520$77,520$77,520$75,108$2,4123.20%
11UC-Berkeley Haas$76,433$76,187$71,817$68,444$68,444$7,98911.70%
12Carnegie Mellon Tepper$75,712$72,800$70,000$70,000$68,000$‎7,71211.30%
13Virginia Darden$75,600$75,200$72,600$72,600$70,500$‎5,1007.20%
14Duke Fuqua$75,000$71,750$70,000$70,000$70,000$‎5,0007.10%
15Harvard Business School$74,910$73,440$73,440$73,440$73,440$‎1,4702.00%
16UCLA Anderson$74,618$71,071$67,737$65,124$65,114$‎9,50414.60%
17Michigan Ross$73,196$73,196$72,114$71,048$71,048$‎2,1483.00%
18USC Marshall$72,501$69,036$53,806N/AN/AN/AN/A
19Emory Goizueta$71,900$70,200$70,741$69,339$65,400$‎6,5009.90%
20UNC Kenan-Flagler$71,364$68,112$66,840$66,270$66,324$‎5,0407.60%
21Rice Jones$69,000$66,000$63,500$60,940$60,940$‎8,06013.20%
22Vanderbilt Owen$68,500$65,500$62,750$60,750$58,400$‎10,10017.30%
23Washington Olin$66,200$64,250$64,250$62,981N/AN/AN/A
24Georgetown McDonough$64,600$62,370$60,894$60,894$59,700$‎4,9008.20%
25Texas McCombs$58,270$58,270$58,270$56,924$54,924$‎3,3466.10%
26Washington Foster$57,846$56,127$53,601$53,531$51,531$‎6,31512.30%
27Indiana Kelley$54,602$53,553$52,483$51,454$51,451$‎3,1516.10%

The data collected from top business schools in the United States reveals a dynamic landscape in terms of tuition fees. Below, we explore the tuition fee changes from 2019 to 2023 for several leading institutions:

1. The Wharton School – University of Pennsylvania

  • 2023 Tuition: $87,370
  • 5-Year Change: $12,870 (17.30%)

2. Columbia Business School – Columbia University

  • 2023 Tuition: $84,496
  • 5-Year Change: $7,120 (9.20%)

3. MIT Sloan School of Management – Massachusetts Institute of Technology

  • 2023 Tuition: $84,200
  • 5-Year Change: $7,032 (9.10%)

4. Yale School of Management

  • 2023 Tuition: $82,700
  • 5-Year Change: $10,350 (14.30%)

5. New York University Stern School of Business

  • 2023 Tuition: $82,326
  • 5-Year Change: $8,142 (11.00%)

6. Kellogg School of Management – Northwestern University

  • 2023 Tuition: $81,015
  • 5-Year Change: $7,611 (10.40%)

7. Chicago Booth School of Business – University of Chicago

  • 2023 Tuition: $80,961
  • 5-Year Change: $8,961 (12.40%)

8. Samuel Curtis Johnson Graduate School of Management – Cornell University

  • 2023 Tuition: $79,910
  • 5-Year Change: $10,470 (15.10%)

9. Stanford Graduate School of Business

  • 2023 Tuition: $79,860
  • 5-Year Change: $6,798 (9.30%)

10. Tuck School of Business – Dartmouth College

  • 2023 Tuition: $77,520
  • 5-Year Change: $2,412 (3.20%)

These numbers showcase the evolving landscape of MBA tuition fees in the USA. While some schools have experienced moderate increases, others have seen more substantial changes.

Looking at this data, it’s evident that tuition fees for MBA programs at these top schools have been on the rise over the past five years. While some schools have seen more significant increases than others, the overall trend is upward. Here are some key observations:

  1. Wharton School experienced the highest increase over the past five years, with a 17.30% rise in tuition fees. This reflects a consistent upward trajectory in costs.
  2. Columbia Business School and MIT Sloan have also seen substantial increases of 9.20% and 9.10%, respectively, over the same period.
  3. Even schools with lower percentage increases, like Harvard Business School (2.00%) and Michigan Ross (3.00%), have still seen their tuition fees go up.
  4. It’s worth noting that some schools, like Dartmouth Tuck, have kept their tuition relatively stable, with a modest 3.20% increase over five years.
  5. There are instances where specific data points are missing, such as USC Marshall and Washington Olin, which may be due to reporting differences or data unavailability.
  6. The data also reflects the impact of the COVID-19 pandemic, with some schools freezing tuition fees in 2022 and 2023, likely in response to the economic challenges faced by many students.

Living Expenses

S. No.Business School2023 Living Expenses2022 Living Expenses2021 Living Expenses2020 Living Expenses2019 Living Expenses5-Year Change5-Year %
1Stanford GSB$‎ 38,724$‎ 36,198$‎ 34,806$‎ 33,693$‎ 32,712$‎ 6,01218.40%
2Harvard Business School$‎ 32,600$‎ 31,390$‎ 30,270$‎ 30,700$‎ 29,844$‎ 2,7569.20%
3Dartmouth Tuck$‎ 31,620$‎ 30,215$‎ 31,215$‎ 29,413$‎ 22,742$‎ 8,87839.00%
4USC Marshall$‎ 30,410$‎ 26,980$‎ 24,256N/AN/AN/AN/A
5Washington Foster$‎ 29,668$‎ 21,248$‎ 21,248$‎ 21,248$‎ 21,248$‎ 8,42039.60%
6Yale SOM$‎ 28,266$‎ 25,200$‎ 24,284$‎ 27,680$‎ 22,214$‎ 6,05227.20%
7NYU Stern$‎ 28,242$‎ 28,242$‎ 27,420$‎ 26,804$26,780$‎ 1,4625.50%
8Georgetown McDonough$‎ 26,578$‎ 24,822$‎ 22,696$‎ 22,696$‎ 22,696$‎ 3,88217.10%
9UC-Berkeley Haas$‎ 26,416$‎ 26,416$‎ 26,014$‎ 25,658$25,234$‎ 1,1824.70%
10Wharton$‎ 26,028$‎ 22,887$‎ 21,720$‎ 21,050$‎ 22,670$‎ 3,35814.80%
11Chicago Booth$‎ 26,010$‎ 22,185$‎ 22,185$‎ 22,185$‎ 22,185$‎ 3,82517.20%
12Rice Jones$‎ 25,014$‎ 24,537$‎ 24,537$‎ 24,537$‎ 24,537$‎ 4771.90%
13UCLA Anderson$‎ 24,850$‎ 25,200$‎ 25,200$‎ 21,600$‎ 24,668$‎ 1820.70%
14Columbia Business School$‎ 24,822$‎ 24,822$‎ 24,822$‎ 24,822$21,375$3,44716.10%
15Duke Fuqua$‎ 23,202$‎ 20,304$‎ 19,256$‎ 18,990$‎ 18,702$‎ 4,50024.10%
16Virginia Darden$‎ 22,870$‎ 19,720$‎ 18,430$‎ 18,176$‎ 17,766$‎ 5,10428.70%
17CMU Tepper$‎ 22,860$‎ 21,400$‎ 20,182$‎ 17,944$‎ 17,322$‎ 5,53832.00%
18Vanderbilt Owen$‎ 22,682$‎ 19,472$‎ 18,594N/AN/AN/AN/A
19Emory Goizueta$‎ 22,186$‎ 21,312$‎ 19,278$‎ 19,278$‎ 19,278$‎ 2,90815.10%
20MIT Sloan$‎ 21,694$‎ 23,877$‎ 21,975$‎ 26,660$‎ 26,660$‎ (4,966)18.60%
21Northwestern Kellogg$‎ 19,800$‎ 19,800$‎ 17,100$‎ 17,100$17,100$‎ 2,70015.80%
22UNC Kenan-Flagler$‎ 19,268$‎ 19,268$‎ 18,760$‎ 18,618$17,800$‎ 1,4688.20%
23Cornell Johnson$‎ 18,554$‎ 20,016$‎ 17,865$‎ 16,800$‎ 16,800$‎ 1,75410.40%
24Michigan Ross$‎ 17,780$‎ 17,780$‎ 16,998$‎ 16,502$16,194$‎ 1,5869.80%
25Washington Olin$‎ 17,696$‎ 17,696$‎ 17,696N/AN/AN/AN/A
26UT Austin McCombs$‎ 17,270$‎ 20,206$‎ 19,478$‎ 18,078$‎ 18,370$‎ (1,100)6.00%
27Indiana Kelley$‎ 15,446$‎ 15,456$‎ 14,904$‎ 13,906$‎ 13,432$‎ 2,01415.00%

These numbers paint a vivid picture of the varying living costs associated with pursuing an MBA across different institutions. Let’s extract some key insights from this data:

1. Diversity in Living Expenses:

Living expenses exhibit substantial diversity among business schools, reflecting the different costs of living in various cities and regions. Schools located in major metropolitan areas tend to have higher living expenses.

2. Significant Changes Over Time:

Several schools have experienced significant increases in living expenses over the past five years. Dartmouth Tuck stands out with a staggering 39% increase during this period.

3. Economic Factors at Play:

Changes in living expenses are influenced by economic factors, inflation, and local real estate markets. Students should be prepared for fluctuations and budget accordingly.

4. Urban vs. Non-Urban Costs:

Schools situated in urban centers, such as New York City, tend to have higher living expenses due to elevated housing costs and general living expenses. In contrast, schools in less urban areas often offer a more budget-friendly lifestyle.

Total MBA Cost at US business schools

S. No.Business SchoolTotal 2-Year MBA Cost2023 Total Cost2022 Total Cost2021 Total Cost2020 Total Cost2019 Total Cost2-Year Change2-Year %5-Year Change5-Year %
1Stanford GSB$‎ 250,854$‎ 126,465$‎ 124,389$‎ 119,964$‎ 118,644$‎ 115,917$‎ 2,0761.70%$‎ 10,5489.10%
2Columbia Business School$‎ 249,518$‎ 127,058$‎ 122,460$‎ 118,777$‎ 117,633$‎ 114,309$‎ 4,5983.80%$‎ 12,74911.20%
3NYU Stern$‎ 244,778$‎ 123,253$‎ 121,525$‎ 121,541$‎ 119,251$‎ 116,511$‎ 1,7281.40%$‎ 6,7425.80%
4Wharton$‎ 243,044$‎ 124,476$‎ 118,568$‎ 115,464$‎ 111,695$‎ 114,896$‎ 5,9085.00%$‎ 9,5808.30%
5UCLA Anderson$‎ 238,989$‎ 121,591$‎ 117,398$‎ 113,893$‎ 104,954$‎ 110,056$‎ 4,1933.60%$‎ 11,53510.50%
6Northwestern Kellogg$‎ 237,691$‎ 120,432$‎ 117,259$‎ 111,658$‎ 107,197$‎ 105,610$‎ 3,1732.70%$‎ 14,82214.00%
7Dartmouth Tuck$‎ 237,579$‎ 120,004$‎ 117,575$‎ 118,815$‎ 112,000$‎ 115,040$‎ 2,4292.10%$‎ 4,9644.30%
8Chicago Booth$‎ 237,222$‎ 122,160$‎ 115,062$‎ 111,855$‎ 110,328$‎ 108,822$‎ 7,0986.20%$‎ 13,33812.30%
9UC-Berkeley Haas$‎ 232,109$‎ 116,178$‎ 115,931$‎ 110,595$‎ 106,348$‎ 101,534$‎ 2470.20%$‎ 14,64414.40%
10MIT Sloan$‎ 229,175$‎ 109,180$‎ 119,995$‎ 117,998$‎ 120,846$‎ 118,818$‎ (10,815)-9.00%$‎ (9,638)-8.10%
11Washington Foster$‎ 227,946$‎ 115,692$‎ 112,254$‎ 107,202$‎ 107,136$‎ 103,062$‎ 3,4383.10%$‎ 12,63012.30%
12Harvard Business School$‎ 227,944$‎ 115,638$‎ 112,306$‎ 112,764$‎ 111,542$‎ 111,818$‎ 3,3323.00%$‎ 3,8203.40%
13Yale SOM$‎ 223,596$‎ 114,816$‎ 108,780$‎ 104,752$‎ 102,240$‎ 100,274$‎ 6,0365.60%$‎ 14,54214.50%
14Cornell Johnson$‎ 214,833$‎ 107,211$‎ 107,622$‎ 101,685$‎ 99,760$‎ 96,840$‎ (411)-0.40%$‎ 10,37110.70%
15Virginia Darden$‎ 212,987$‎ 108,951$‎ 104,036$‎ 100,778$‎ 100,322$‎ 97,508$‎ 4,9154.70%$‎ 11,44311.70%
16USV Marshall$‎ 210,503$‎ 107,539$‎ 102,964$‎ 92,960N/AN/A$‎ 4,5754.40%N/AN/A
17CMU Tepper$‎ 209,006$‎ 107,084$‎ 101,922$‎ 97,929$‎ 96,789$‎ 93,669$‎ 5,1625.10%$‎ 13,41514.30%
18Duke Fuqua$‎ 207,004$‎ 106,735$‎ 100,269$‎ 97,554$‎ 97,330$‎ 96,850$‎ 6,4666.50%$‎ 9,88510.20%
19Vanderbilt Owen$‎ 203,064$‎ 106,909$‎ 96,155$‎ 93,751$‎ 90,623$‎ 88,091$‎ 10,75411.20%$‎ 18,81821.40%
20Michigan Ross$‎ 199,729$‎ 99,780$‎ 99,949$‎ 97,566$‎ 95,840$‎ 96,860$‎ (169)-0.80%$‎ 2,9203.00%
21Emory Goizueta$‎ 199,709$‎ 104,775$‎ 94,934$‎ 95,475$‎ 94,133$‎ 92,276$‎ 9,84110.40%$‎ 12,49913.50%
22Georgetown McDonough$‎ 198,447$‎ 103,513$‎ 94,934$‎ 95,475$‎ 94,133$‎ 92,276$‎ 8,5799.00%$‎ 11,23712.20%
23UNC Kenan-Flagler$‎ 196,604$‎ 99,928$‎ 96,676$‎ 94,632$‎ 92,370$‎ 91,946$‎ 3,2523.40%$‎ 7,9828.70%
24Rice Jones$‎ 186,797$‎ 96,260$‎ 90,537$‎ 80,090$‎ 90,250$‎ 94,086$‎ 5,7236.30%$‎ 2,1742.30%
25Washington Olin$‎ 177,054$‎ 89,546$‎ 87,508$‎ 87,508$‎ 87,508$‎ 87,508$‎ 2,0382.30%$‎ 2,0382.30%
26UT Austin McCombs$‎ 163,866$‎ 82,738$‎ 81,128$‎ 80,324$‎ 77,190$‎ 77,644$‎ 1,6102.00%$‎ 5,0946.60%
27Indiana Kelley$‎ 161,661$‎ 81,386$‎ 80,275$‎ 78,658$‎ 76,618$‎ 76,090$‎ 1,1111.40%$‎ 5,2967.00%

The total two-year cost of an MBA program encompasses both tuition fees and living expenses, providing a holistic view of the financial investment. Here is a snapshot of the total two-year costs at select business schools in the USA:

1. Stanford Graduate School of Business

  • Total 2-Year MBA Cost: $250,854

2. Columbia Business School – Columbia University

  • Total 2-Year MBA Cost: $249,518

3. NYU Stern School of Business – New York University

  • Total 2-Year MBA Cost: $244,778

4. The Wharton School – University of Pennsylvania

  • Total 2-Year MBA Cost: $243,044

5. UCLA Anderson School of Management – University of California, Los Angeles

  • Total 2-Year MBA Cost: $238,989

6. Kellogg School of Management – Northwestern University

  • Total 2-Year MBA Cost: $237,691

7. Tuck School of Business – Dartmouth College

  • Total 2-Year MBA Cost: $237,579

8. Chicago Booth School of Business – University of Chicago

  • Total 2-Year MBA Cost: $237,222

9. Haas School of Business – UC-Berkeley

  • Total 2-Year MBA Cost: $232,109

10. MIT Sloan School of Management – Massachusetts Institute of Technology

  • Total 2-Year MBA Cost: $229,175

Analyzing the data on both tuition fees and living expenses, we can draw several key inferences regarding the total cost of obtaining an MBA in the USA:

  1. Wide Variation in Total Costs: The total cost of an MBA in the USA varies significantly among different business schools. Stanford GSB and Columbia Business School have the highest two-year costs, exceeding $250,000, while Indiana Kelley and UT Austin McCombs have relatively lower costs, below $165,000.
  2. High Tuition Schools: The schools with the highest tuition fees, such as Wharton and Columbia, also tend to have higher total costs. This is not surprising, as tuition fees are a significant component of the total cost.
  3. Impact of Living Expenses: Living expenses have a substantial impact on the total cost of an MBA. Schools located in high-cost cities like New York and San Francisco, such as NYU Stern and Stanford GSB, tend to have higher total costs.
  4. Varied Increases Over Five Years: The increase in total cost over the past five years may not necessarily correlate directly with tuition fee increases. For instance, while Tuck has seen significant growth in living expenses, it doesn’t have the highest total cost. MIT Sloan, on the other hand, has experienced a decrease in living expenses but still has a relatively high total cost.
  5. Diversity in Financial Planning: Prospective MBA candidates should carefully consider the total cost of the program, taking into account both tuition and living expenses. Those interested in programs with high living expenses should explore options for financial aid, scholarships, or cost-saving measures to manage their expenses.
  6. Budget-Friendly Options: Some schools, such as Indiana Kelley and UT Austin McCombs, offer more budget-friendly options for MBA candidates. This could be attractive to students seeking a quality education with a lower financial burden.
  7. Location Matters: The location of the business school plays a crucial role in the total cost. Schools in more affordable cities or regions tend to have lower living expenses and, consequently, lower total costs.

Other MBA expenses

Of course, students don’t just spend their hard-earned money on the MBA program. There are other costs as well.

Before the MBA program starts, there will be some costs, such as taking the TOEFL (originally known as the Test of English as a Foreign Language). The TOEFL is a standard test that measures a person’s English skills to see if they are good enough to go to college or graduate school in an English-speaking country.

The TOEFL cost varies from country to country and is about $190 in India and $235 in the US, but there may be other fees, like $40 for late registration, $60 for rescheduling an appointment, and $20  for canceled score reinstatement

Whether or not you need to take the TOEFL, everyone will have to take the GMAT (or GRE), which tests higher-order reasoning skills. These skills include making complex decisions, critical thinking, analysis, and problem-solving. The GMAT test costs $275 (test center) and $300 (at home) everywhere in the world.

Business schools make a lot of money from application fees. Applicants can expect to pay between $100 and $275 per application to each business school.

People say that top MBA programs like Harvard and Stanford get between 8,000 and 10,000 applications each year for about 1,800 spots. The application fee for Stanford Graduate School of Business is $275, which is for most of the top US business schools. This means that if more than 8,000 people apply, the school could make more than $2.2 million.

How to make your MBA pocket friendly?

Obtaining an MBA might be a challenge because of the high prices involved. In addition, the rising cost of living around the world, including gas and housing, makes it harder than ever to pay for an MBA.

The high cost of living has had a big effect on business schools: The top 20 MBA schools ranked by the Financial Times have raised their tuition by 6.3% for 2021.

Here are a few tips to help you reduce your MBA costs:

Carefully select the location of your business school

The cost of an MBA will depend a lot on where in the world you decide to study for it.

The United States is the most expensive nation to pursue an MBA full-time due to the high cost of living, mandatory healthcare payments, and the normal two-year duration of the program. Costs are even higher for international students who have to pay for travel on top of all their other costs.

US MBA programs are expensive, but there are ways to lower the cost. Selecting a cost-effective study region is one example. Living expenses for a Stanford MBA student are estimated at $72,396 for the whole two years, making California one of the most costly locations in the US to earn an MBA.

Cities like New York also have high costs of living, but there are cheaper places to study for an MBA program if you know where to look. Duke Fuqua students in Durham, North Carolina, have the lowest living expenditures of any top 20 MBA school in the US. In-state students usually pay less for tuition, so if you’re a US student, getting your MBA in your home state will probably save you some money.

Choose a shorter MBA to save money

One way to lower the cost of an MBA is to take a 12-month MBA degree. Most top MBAs take less time to finish outside of the US. MBAs that take one year are much cheaper than those that take two. However, even for one year, living in big cities like London and Paris can be very expensive.

If you look outside of the big cities in Europe, you can find top MBA schools with low fees. Warwick Business School, a prominent UK business school outside London, with lower accommodation, food, and drink costs.

Examine the fee structure to determine what is required and what is optional to lower the cost of an MBA. Some trips or sessions may be optional, for instance.

Find out how to get grants and scholarships

Top business schools provide scholarships and grants that can cover a large portion of the MBA tuition. Some of the best MBA schools pay for all of their students’ tuition costs. About half of Harvard Business School students get help based on how much money they need, and INSEAD offers more than 90 scholarships.

There are four different kinds of MBA scholarships: merit-based, need-based, diversity-based, and career-specific. Your best chance of cutting fees is to explore all scholarship programs at your target business schools.

Once you’ve done all your research, the sooner you apply for an MBA scholarship, the better your chances of getting one because business schools have a lot of scholarship budget available.

Cut personal expenses

Lastly, to cut the cost of your MBA, find ways to spend less on your personal life while you’re in school.

First of all, if you want to live far away from home or abroad for your MBA college, look for and book your b school accommodation early. Affordable housing near campus is in high demand because living costs are one of the main MBA expenses.

You could also live a little farther from campus or share a house or apartment with someone else in your MBA class to save money. Even though you may have to spend more on transportation, you may save money on lodging if you choose a location distant from the business school.

Buying used textbooks and other educational resources is another way to lessen the financial burden of pursuing an MBA degree. When you’re getting ready for business school, try not to buy anything brand-new. Look for used bookstores near you that sell books on business, management, and finance, as well as groups where former students or graduates sell their old textbooks.

If you need to upgrade your computer or laptop before starting management studies, buying pre-owned is smart. 

Before pursuing an MBA keep in mind the ROI

With the high price tag of an MBA degree, any savings you may make are welcome. It can make things easier financially after graduation.

An MBA from a prestigious institution may cost a lot of money, especially if you want to go to a good school, but it will pay for itself many times over in improved compensation and career opportunities. So while it may seem like you’re spending a lot of money on management education at university, focus on the returns you’ll get after graduation.

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