There is always a lack of a realistic estimate of the kind of money that goes into an MBA course. The most asked question doing the rounds is, How much financing would one need? It is incredibly confusing to find a majority of the international MBA Blogs discuss MBA finances in Dollars and Euros. However, we make it a point to stick to the Indian National Currency. In addition, keep in mind that these estimates are based on numerous early assumptions. Thus, if these mark a difference from the calculations you have made for your MBA course, don’t be shocked. Most importantly, it is bound to be different under different circumstances. In addition, each student’s case is unique to its own. Therefore, in this MBA Cost Evaluation setup, we focus on important headings such as the MBA tuition fees, the cost of living according to the country you choose; India, USA, UK, Australia, Canada or Germany. So, How Much Does an MBA Cost in India, USA, Europe? Here’s a Basic Comparison.
What is the MBA Cost in the USA, Europe, and India?
Three different kinds of randomly chosen MBA schools are taken into consideration. Thus, these are the Indian GMAT-score based college, the European 1-year program and the full-scale, 2-year course based in the USA. Moreover, these three selected B-schools fall on similar lines with ISB, INSEAD, Stanford, Stern, Columbia, Harvard and the rest. Information given is sourced from the official school websites of the name mentioned above. Furthermore, the realistic and truest versions of the MBA Cost estimates are as follows.
Thus, below are all the figures in INR, by taking values as
$1=INR 65, and 1 EUR=INR 80.
A Basic Comparison
1- Pre MBA Expenses
One Year Lower Range- INR29,975
1 Year Higher Range-INR 42,975
2 Year Range-INR 44,850
2- GMAT Fees
For all year ranges- INR 16,250
3- TOEFL Fee
For all year ranges, INR 10,725
4- Application Fee
1 Year Lower Range- INR 3,000
1 Year Higher Range- INR 16,000
2 Year Range- INR 17,875
5- Program Fees
1 Year Lower Range- INR 2,014,000
1 Year Higher Range- INR 4,990,000
2 Year Range- INR 8,807,840
1 Year Lower Range- INR 1,744,000
1 Year Higher Range-INR 4,760,000
2 Year Range- INR 7,741,500
1 Year Lower Range- INR 200,000
1 Year Higher Range- INR 116,000
2 Year Range- INR 511,680
1 Year Lower Range- INR 20,000
1 Year Higher Range- INR 64,000
2 Year Range- INR 504,660
For all years and ranges, INR 50,000
10- Personal Expenses
1 Year Lower Range- INR 1,077,414
1 Year Higher Range- INR 1,866,000
2 Year Range- INR 10,665,940
11- Travel (Local + Flight)
1 Year Lower Range- INR 115,000
1 Year Higher Range- INR 450,000
2 Year Range- INR 437,930
1 Year Lower Range- INR 168,000
1 Year Higher Range-INR 720,000
2 Year Range- INR 3,655,860
1 Year Lower Range- INR 100,000
1 Year Higher Range- INR 100,000
2 Year Range- INR 424,000
14- Exchange/Job Search
1 Year Lower Range- INR 400,000
1 Year Higher Range- INR 152,000
2 Year Range- INR 650,000
15- Miscellaneous MBA costs
1 Year Lower Range- INR 33,000
1 Year Higher Range- INR 120,000
2 Year Range- INR 72,150
For all year ranges, INR 261,414
17- Average Incoming Salary
1 Year Lower Range- INR 829,086
1 Year Higher Range- INR 829,086
2 Year Range- INR 1,658,172
18- Total Cost
1 Year Lower Range- INR 3,950,475
1 Year Higher Range- INR 7,728,061
2 Year Range- INR 15,326,802
19- Average Outgoing Salary
1 Year Lower Range-INR 1,741,081
1 Year Higher Range-INR 6,896,000
2 Year Range-INR 11,050,000
Other Points to Keep in Mind for MBA in USA, UK, and India
There are certain estimates that only vary from person to person and case to case. In addition, for such things, one cannot make a generic estimate. Therefore, things that come under the personal consideration section are-
The presupposition is that you will travel once to the campus, and then make at least 2 trips back home. This can differ according to where your home is and your inclination/requirements of the visit.
The job search component is relevant for most international school as many of them do not have a formal in-campus placements week, the like we are more accustomed to in India. The Exchange is completely discretionary but definitely a good idea in general if manageable.
Average Incoming Salary for MBA in USA, UK and India
The assumption here, which could be a big one, is that the average incoming salary is the same for Indian, European and US schools. So you may want to tweak this to your own favorite number.
This is a big omission from the calculation. The reason is that this tends to be extremely subjective and hugely variable. Putting a number on that is akin to estimating the number of stars visible on a moonless night – well I exaggerate, but you get the drift. Depending on what kind of person you are, this could be a big expense or it could be relatively modest. So take a pick on this one.
Potential ROI and Payback Calculation for MBA in USA
The next question to pop up is, How can one use this information in the best possible way? One of the meaningful ways of putting this information to good use is to attempt a potential ROI and Payback calculation. Furthermore, taking a bulk of your incoming and outgoing incomes, one can get an estimate on which schools would actually give you the best possible ROI. However, remember to be aware of the trials of averages.
The average or median incomes are most often misleading for various cases. Therefore, make sure to proceed with utmost caution. If you wish to go beyond the top B-schools for estimation, the calculations would drastically different, less for some while more for the others. In addition, it is advised to make use such a structured analysis to get a wholesome sense of things.
In fact, try not to form decisions on the basis of a difference of mere decimal places between the estimates for two schools. Moreover, for Indian MBA applicants who feel uneasy with the estimates, aiming for MBA scholarships can help bring down the MBA costs immensely.
However, if you are unable to find a significant financial aid or scholarship from a B-school, you can explore options among non-consignor student loans, educational loans and even MBA education loans that function without collateral.
We hope you find this post helpful. If you have any questions, please share in the comments section. Also, please do share your suggestions and feedback.