How to Cut the Cost of an MBA

The benefits of an MBA (Master of Business Administration) degree are extensive and long-lasting. An MBA is one of the most prestigious qualifications in the world that can advance your career in a way that no other degree can. 

The CEOs of companies such as Amazon, Apple, Google, Coca-Cola, and JP Morgan are all MBA graduates, whilst countless others have successfully used it to switch career or industry. 

But those career opportunities come at a cost. An MBA is also one of the most expensive qualifications in the world - and it’s getting more expensive. According to the BusinessBecause Cost of MBA Report 2024, the average total cost of an MBA from one of the top 20 schools in the world is $205,763. That figure has increased by almost 10% since 2022.

Despite the high costs involved, there are all sorts of ways to reduce them. Let’s take a look at some of the most effective.

Choose your region wisely

Where you decide to study an MBA will be a major factor in the total cost. 

The US is generally the most expensive place in the world to do an MBA because of the high tuition fees, the cost of living, and the typical two-year length of the program. For international students, the costs can be even higher.

As the BusinessBecause Cost of MBA Report revealed, the top full-time MBAs in the US raised their tuition fees by an average of 4.4% in 2024. The average total cost of an MBA in the US is now $242,267.

That’s significantly higher than in Europe, where the average cost is now $140,130. In Asia, that figure can be even lower.

The most expensive full-time MBAs in the world

Almost all of the most expensive MBA programs in the world are in the United States.

School	Tuition (US$)	Total Cost of MBA (US$)
Stanford (US)	164,910	260,709
Columbia (US)	176,600	257,409
Haas (US)	170,812	254,990
Anderson (US)	156,536	252,332
Sloan (US)	173,100	249,993
Wharton (US)	169,660	249,712
Chicago: Booth (US)	168,396	245,195
Harvard (US)	152,820	245,002
Tuck(US)	161,240	242,108
Kellogg (US)	167,220	239,770

The relative strength of the dollar compared to the rupee or euro has also made American MBAs more expensive for international students in recent years. However, there are plenty of ways to reduce the cost.

For one, living costs can vary dramatically across the country. California, for example, is one of the most expensive states in the US, with Stanford MBA students paying an estimated $79,775 in living costs over two years. 

In contrast, students at North Carolina’s Duke Fuqua pay the lowest living costs of any US-based university in the top 20 ranking, at $48,096. 

American business schools also tend to offer a wider range of scholarships and bursaries than their European or Asian counterparts. It’s worth investigating the options at each school before applying, as international students stand a good chance of receiving some form of financial aid in the US.

Opt for a shorter MBA to cut costs

Another trick for lowering the cost of an MBA is to take a shorter, 12-month degree instead. These tend to be more popular in Europe and Asia, though the one-year option is also gaining popularity in the US. 

The main drawback of this option is that you won’t get the chance to do a summer MBA internship in a 12-month program. As they can often lead to a full-time position after graduation, they can be hugely beneficial. 

Consider India: a top choice for lower cost MBAs 

As tuition fees and living costs continue to rise in the US and Europe, many students are starting to look beyond those traditional study destinations. One possible alternative is India, which is home to a number of high-quality schools that offer much lower fees than in the US or Europe. 

MBA tuition fees at the top business schools in India:

• India School of Business costs $46,436
• IIM Ahmedabad costs $28,837
• IIM Bangalore costs $35,950 
• SP Jain Institute of Management and Research costs $20,828
• FMS Delhi University costs $2,411

Indian government colleges such as Faculty of Management Studies (FMS) Delhi have lower fees compared with privately owned universities, and the living costs in India are also significantly cheaper than the US or Europe. All these numbers indicate how much more cost-effective it is to pursue an MBA in India.

Despite their low fees, Indian MBA colleges attract top recruiters from leading consulting and finance firms as well as Fast-Moving Consumer Goods (FMCG) companies such as AB InBev, Hindustan Unilever, P&G and Coca-Cola.

Consider a modular or part-time MBA  

One way to lower the cost of an MBA is to continue working alongside your program. Part-time MBA courses allow mid-career professionals to accelerate their career goals while staying in their current role.

There are several high-quality part-time MBAs that mirror the teaching quality and career opportunities that a full-time program can offer. 

1. Chicago Booth: $7,492
2. Berkley Haas: $3,533
3. Northwestern Kellogg: $7,418
4. NYU Stern: $2,434
5. UC Anderson: $1,640

Explore online or hybrid options

Since the COVID-19 pandemic, online and hybrid study options have become more widely available at business schools around the world.

According to the GMAC Prospective Students Survey 2024, 17% of candidates would favor a hybrid program format - up from 12% before the pandemic.

School	Location	Average Tuition/fees (US$)
IE Business School	Spain	52,496
Imperial College Business School	UK	56,889
Warwick Business School	UK	50,836
USC Marshall	US	126,787
Carnegie Mellon: Tepper	US	146,916
Durham University Business School	UK	37,352
AGSM at UNSW Business School	Australia	39,114
Polimi School of Management	Italy	38,408
Birmingham Business School	UK	25,768
University of Bradford School of Management	UK	23,928

Explore scholarship options

Financial support from top business schools can cover a significant chunk of the total MBA cost, and scholarships or bursaries are more accessible than you might think. Some top business schools cover 100% of tuition fees for eligible students. Around 50% of students at Harvard Business School receive some form of need-based financial aid, and INSEAD offers more than 90 different scholarships.

Most MBA scholarships tend to be either merit-based or need-based. Merit-based scholarships are awarded based on academic or professional achievements, while need-based scholarships are awarded to financially-disadvantaged students. There are also diversity-based forms of financial aid, which are awarded to students from underrepresented backgrounds.

Before applying for an MBA, you should thoroughly research all of the financial aid opportunities at your target schools.

"For institutional scholarships, you will want to familiarize yourself with the MBA application requirements at each institution where you intend to apply, and plan your application timeline to account for any special scholarships that require additional essays or application materials," says Melody Jones from Vantage Point MBA Consulting.

Timing is also important. As a rule of thumb, the earlier in the application cycle you apply for an MBA scholarship, the better your chances of success.

“Early in the application process cycle, the scholarship budget hasn’t been exhausted yet. Applying in round one would be a very smart decision,” explains Petia Whitmore, founder of My MBA Path.

Reach out to business schools for advice

While a business school's site will hold a fair amount of information, it is a good idea to reach out to your target school's admissions office directly as many schools will offer insider tips to acing the scholarship process.

It is also a good idea to make contact with students or alums of the b school.

"Candidates can also reach out to students/alums to know more about their experience and points to look out for while applying for scholarships. This will help candidates to have clarity on the bouquet of scholarships on offer and apply to the ones suitable to their profile," says Dibyendu Bose, Senior Director-Admissions & Financial AID at Indian School of Business (ISB). 

Reach out to business schools for advice

While a business school's website will contain plenty of information about their MBA programs, it would also be a good idea to reach out to the admissions office directly - as many schools will offer insider tips on the scholarship process.

According to Dibyendu Bose, Senior Director-Admissions & Financial AID at Indian School of Business (ISB), it’s also advisable to get in touch with current students or alumni.

"Candidates can also reach out to students/alums to know more about their experience and points to look out for while applying for scholarships,” he says. “This will help candidates to have clarity on the bouquet of scholarships on offer and apply to the ones suitable to their profile."

Score high on your GMAT/NMAT

We mentioned before that plenty of business schools award scholarships based on academic achievements. One way of accessing these awards is by scoring highly on the GMAT.

GMAT scores can range from 205-805. A score of 645 and above will make you a competitive applicant at business schools around the world. Scoring even higher could give you a chance of securing a merit-based scholarship.

Still, business schools will always review every aspect of your profile, so an MBA college will look beyond simply your score. For instance, INSEAD looks at both merit and financial criteria for its scholarships.

“Merit scholarships focus on different attributes, such as professional achievements, leadership experience, past academic successes, and economic or community involvement in a particular country," says Irina Schneider-Maunoury, senior associate director of financial aid at INSEAD.

Look at reducing your personal costs

An MBA is never going to come cheap - but finding ways to reduce your own living costs can make a huge difference to the overall cost.

For starters, one of the biggest expenses during an MBA program is the cost of accommodation. The most affordable accommodation gets snapped up early, so it’s important to search and secure yours as early as possible.

You could also consider sharing a house or apartment with other members of your MBA class to lower the cost. Most schools will allow you to connect with your classmates before the program starts, so use that opportunity to start arranging flatshares.

On occasion it may also be cheaper to live a little further away from campus. This is particularly the case for city-based schools such as NYU Stern or Stanford, where you have to bear the living costs of major American cities.

Remember to focus on ROI

Although reducing the cost of your MBA is important, it’s arguably more important to focus on the overall ROI of your program.

Put it this way: you’re spending a huge amount of money now, but that will more than pay itself back given the huge salary bump that an MBA can provide.

Ultimately, it’s all about weighing up the costs vs the benefits. If the money you spend on an MBA leads to a high-paying new career in your dream industry, it’ll have been more than worth your time and money.

Try our MBA Return on Investment Calculator