What Is an MBA? All About the MBA Degree and MBA Programs

Key Takeaways: 

• An MBA is one of the world’s most prestigious degrees, targeting professionals with three to five years of work experience who want to accelerate their career in business
• During an MBA program you’ll study topics such as business strategy, marketing, finance, communication, leadership, and negotiation
• Although the leading MBAs in the world can cost over $200,000 in total, average starting salaries can exceed $175,000
  

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The MBA is the world’s most popular graduate management degree. Employers love it and students can’t get enough of it. Thousands of ambitious professionals apply to different types of MBA programs each year.

As a generalist degree, the MBA gives you fundamental management knowledge, meaning you’ll get a holistic view of business across areas like marketing, finance, and accounting, all while developing those vital soft skills and leadership skills.

Famous MBA alumni include CEOs of multinational companies, successful entrepreneurs, and former Presidents. George W Bush, Michael Bloomberg, Tim Cook, Satya Nadella, Sundar Pichai, and Sheryl Sandberg all have MBAs.

So what can you do with an MBA degree? What types of MBA programs are available? And the most important question: is an MBA worth it?

What does MBA stand for?

MBA stands for Master of Business Administration.

First introduced by Harvard University Graduate School of Administration in 1908 (now Harvard Business School), the MBA is the original graduate degree offered by business schools globally.

Having "MBA" on your resume will help you stand out to employers, but the true meaning of the MBA goes beyond three letters on a sheet. During an MBA, you'll build your business knowledge, grow your professional network, and boost your salary prospects.

Who is an MBA for?

An MBA teaches you the fundamentals of business. You’ll learn hard skills such as strategy, marketing, and accounting together with soft skills such as communication, negotiation, and leadership. People who apply for an MBA tend to be in their late 20s, with three to five years of work experience behind them.

The Harvard MBA class of 2027 comprises 37% international students and 44% women. Students come from technology, manufacturing, healthcare, nonprofits, the media, and the military, as well as finance and consulting.

At INSEAD, more than 80 nationalities are typically represented in the MBA class and students come from academic backgrounds ranging from business and engineering to the arts and political sciences.

Our Prospective Student Survey reveals the bulk of learners study the program to get a salary boost. The other main reasons include the opportunity to manage people and projects, obtain a senior level position at work, and change career.

Whatever your background, if you want to learn management skills and advance your career, an MBA is for you. It’s also a useful tool if you want to start your own business, progress within your current company, or change job function or industry.

“An MBA is not just designed to equip students for their next job post-graduation; it’s a life changing experience that enables students to make career changes five, 10, and 15 years post-MBA, thanks to the skills they learn and the network that lasts long after graduation,” says Virginie Fougea, executive director of student engagement and degree programmes  at INSEAD.

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Not sure where to begin your MBA journey?

We've curated a list of MBA programs to help you get started through Advancery. Start free to assess your strengths, get matched with the right programs, and compare options so you can take your next steps with confidence.

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What are the different types of MBA program? 

While the traditional full-time MBA is the most  popular option for students, the modern MBA comes in all shapes and sizes. Business schools offer various types of MBA programs suited to different profiles of students.

MBA program types

Students, duration, and formats of different MBA program types

MBA Program	Students	Duration	Formats
Full-time MBA	Full-time students	1 - 2 years	One year, Two year
Part-time MBA	Working professionals	2 + years	Evening, Weekend, Blended
Executive MBA	Working executive-level professionals	1 - 2 years	Part-time, Blended, International locations
Online MBA	Working professionals	2 + years	100% Online, Online + residential component

 

Full-time MBA

The two-year, full-time MBA program is the most popular format in the United States, available at institutions such as the elite M7 business schools. The Postgraduate Diploma in Management (PGDM) is  the Indian equivalent of an MBA that is also generally studied over two years.

The one-year MBA is especially popular in Europe and the rest of Asia, offering an accelerated experience and reduced time spent out of the workplace. However, some of these programs may offer a more flexible study format. INSEAD’s MBA takes 10 months to complete, while London Business School offers flexible exit points after 15, 18, or 21 months of study.

Part-time MBA

The part-time MBA allows you to combine work and study, meaning you don’t miss out on your salary and the opportunity cost of pursuing a full-time program. Part-time MBA classes typically take place in evenings, weekends, or in flexible modular formats, combining online learning with in-person sessions.

Executive MBA

The Executive MBA is a part-time MBA program targeted at experienced, executive-level professionals with over 10 years of work experience. EMBA programs bring senior leaders together to upskill, network, and share knowledge, with participants bringing their professional projects into the classroom.

Online MBA

The Online MBA is a flexible part-time MBA delivered virtually that allows you to continue working while studying. Online MBA programs sometimes include a residential component (1-2 weeks), although many are 100 percent online degrees. Many Online MBAs also allow you to pay per module and study at your own pace. This means the duration of Online MBA programs can vary, although taking anywhere from two to five years to complete.

MBA specializations

While the MBA is a generalist degree, you can also specialize in your areas of interest. Business schools offer various MBA specializations including healthcare management, business analytics, entrepreneurship, finance, marketing, and HR. These usually combine core MBA courses in management with a specialist track of courses focused on your area of interest.

In the US, STEM MBA programs permit international students to reside and work in the US for three years after graduating, without an H-1B visa.

MBA students can also pursue dual degrees at may business schools, for instance by combining your MBA with a specialized business master’s or pursuing the JD MBA, offered jointly by law and business schools.

What do you study in an MBA?

The MBA curriculum is typically divided into two parts:

Core MBA courses cover the foundations of general management. Core courses typical of MBA programs include:

• Accounting
• Business Communication
• Business Ethics
• Business Strategy
• Data Analytics
• Economics
• Finance
• Leadership
• Marketing
• Operations

Elective MBA courses give you the opportunity to select courses that match your individual career goals. You usually study the core MBA syllabus before choosing electives in the second half of the program.

Typical MBA electives include:

• Entrepreneurship

• Sustainability and CSR

• Artificial Intelligence (AI)

• Blockchain

• Fintech

• Branding and Advertising

• Corporate Finance

Most MBA courses are taught using the case study method, made famous by Harvard Business School, which sees students analyze case studies of business successes or failures before discussing them in class.

Typically, you learn the business theory during an MBA before applying your learnings in group project work or even real-world consulting projects. Outside class, you can immerse yourself in all aspects of business school life: MBA clubs, extracurriculars, networking events, conferences, competitions, company visits, and exciting international immersions.

So what’s it like being an MBA student? “The irony of the MBA is that it’s usually pursued in an effort to stand out, but during the experience your interaction with so many interesting, driven, and stimulating people is both humbling and inspiring,” says Pascal Michels, former MBA student and MBA admissions director at IESE Business School, now a director and consultant at MBA admissions consulting firm Menlo Coaching.

“Beyond the academics, an MBA is really about the people you meet; the friendships forged in heated classroom discussions and late-night team meetings—that’s what triggers much of the personal growth.”

What can you do with an MBA?

An MBA prepares you for jobs in a variety of industries and roles, though the three most popular industries are consulting, finance, and tech. Typical high-paying MBA jobs include:

• Finance manager

• Financial analyst

• Product manager

• Project manager

• Data analyst

• Investment banking associate

• Management analyst

• Management consultant

• Marketing manager

Employers love hiring MBA graduates and many recruit directly from business schools. For example, the majority of the Stanford MBA Class of 2025 found their post-graduate role through the school’s network, job board, or on-campus event. 

You can find MBA graduates in industries ranging from healthcare to nonprofit. Many also start businesses of their own: 16% of the Stanford MBA Class of 2025 pursued entrepreneurship after graduating.

Companies that hire the most MBAs include the Big Three management consulting firms (Bain, BCG, and McKinsey) Big Tech firms such as Amazon, Google, and Microsoft, and financial institutions such as JP Morgan, Goldman Sachs, Citi, and Morgan Stanley. 

Several years after graduation, MBAs often progress to senior, executive-level jobs. Many Fortune 500 CEOs—including the CEOs of Apple, JP Morgan, Microsoft, and Walmart—have MBAs.

“When we hire an MBA grad, the global perspective and diversity of experiences they have allows them to plug right into Bain, and any of our capability areas, and start helping our clients succeed in their industries,” says Keith Bevans, global head of consultant recruiting at Bain & Company.

MBA program salary: What can you earn?

Getting an MBA degree will boost your salary prospects. For example, MBA students from the NYU Stern School of Business Class of 2025 landed median base salaries of $175k. Meanwhile, graduates from the Haas School of Business at UC Berkeley landed median base salaries of $167k.

But it’s not just the starting salary that matters.Three years after graduation, MBA salaries can rise significantly. Across the top 100 MBA programs ranked by the Financial Times in 2026, the average salary increase after three years was 118%..

Your average MBA salary prospects naturally vary depending on your industry, role, and the business school you go to. The highest-paying MBA jobs tend to be in finance or consulting. Consulting salaries for MBA graduates at McKinsey, Bain, and BCG can reach $260k (including bonuses and benefits) in the first year after completing an MBA, according to ManagementConsulted.  

The average MBA salary in the US is around $106k after graduation, although this can vary depending on location. Based on your experience level and industry, you can estimate your post-MBA salary using our interactive tool.

Is an MBA worth it?

Considering the price of an MBA—the average total cost of studying a top 20 program is over $200k—students are likely to closely scrutinize the return on investment their degree will give them. You can use an MBA ROI calculator to get an idea of the potential return on investment of your target programs.

One way of driving up the ROI of your MBA is to target low-cost programs. And there are plenty of affordable full-time MBA programs that deliver high quality learning and career outcomes. For instance, the AACSB-accredited online MBA at Robert Gordon University costs just £20,410 (US$27,700).

Another way to boost the ROI of your program is to consider part-time programs that you can study alongside your current job, meaning you won’t face the opportunity cost from missing out on your salary for one or two years.

What’s more, business schools offer a variety of MBA scholarships and financial aid to help you fund your tuition, meaning—for full-time MBAs especially—you’ll rarely pay the full cost of tuition for your MBA.

These benefits— plus the post-MBA salary, skills, and network you’ll gain—mean you shouldn’t let the price of an MBA put you off when weighing up your return on investment. If you can find the best fit MBA program that can deliver on your personal ambitions and career goals, then an MBA is more than worth it.

What do you need to apply for an MBA? 

Most business schools require an undergraduate degree (or equivalent qualification) and at least two to three years of work experience before considering you for an MBA. 

You’ll need to prepare your application materials—resume, essays, recommendation letters, and GMAT—before applying by an MBA application round deadline. If successful, you’ll progress to an interview before getting a final offer of acceptance.

Applying to business school can be competitive—Stanford famously has an MBA acceptance rate that is usually lower than 9%. However, the acceptance rate at most other top-tier programs tends to be 20% or over. 

The GMAT exam is a key performance indicator for business schools, but schools consider your holistic profile, looking at all aspects of your application together.

“Strong candidates have a habit of leadership in past and current endeavors, analytical appetite and curiosity, and a penchant for contributing to the success of a community. We want to get to know each applicant and to try to understand how s/he will contribute in our classrooms and community,” says Chad Losee, Harvard Business School’s MBA admissions director.

Now you know what an MBA is and how an MBA can benefit your career, it’s time to take the next step and apply. The MBA application process requires organization and perseverance, and you’ll need to do your research to find the business school that best matches your personality, areas of interest, and career goals.