In the business world, Return on Investment (ROI) is often the determining factor in big decisions. Choosing a capital expenditure or planning a marketing campaign? You’re likely to run the numbers on your potential return.
Plainly, return on investment measures the financial gain of a decision in an attempt to help justify it. The same rules and lessons can be applied to the ROI of an MBA.
Understanding MBA ROI Beyond the Numbers
The financial gain of an MBA program is measured from new job opportunities, promotions and higher salaries. A 2025 survey from the Graduate Management Admissions Council (GMAC) found that the median salary for MBA graduates in the U.S. in 2025 was about $125,000. That’s $25,000 more than an experienced candidate is expected to make if coming from another organization, without an MBA, the survey added.
The increased salary is obviously a selling point for an MBA, but there is a harder to measure part of the degree that can provide the highest dividends. An MBA provides unparalleled connection to a network of classmates and alumni, a space to build leadership skills and access to real-world business lessons.
Kerry Plemmons has seen the benefits up close at the Daniels College of Business. The Department of Management professor of the practice is closely involved in the Executive MBA program and knows what it takes to truly tap into the ROI of an MBA.
“If you look at any MBA graduate, especially from the Executive MBA, and you look at them at one year, five years and ten years, you will see a beautiful trend line where they became successful in their personal and professional life,” he said. “But it’s a long-term game. It’s not something that happens quickly.”
What Determines the True ROI of an MBA?
The value of an MBA can be measured across a variety of factors, from financial to professional and even personal growth. Understanding each area can help dial in your expectation for the program and help chart a path forward.
The Financial Perspective
Salary growth is an important part of the equation to help determine the true ROI of an MBA and is often the first thing people look for. Salaries for MBA graduates far outpace those of bachelor’s degree holders, meaning significant long-term gains for graduates.
At Daniels, half of Part-time Professional MBA alumni made more than $100,000 in their first year after graduation. Similar outcomes are shown across the College’s other MBA programs, including the Denver MBA, Online MBA and Executive MBA.
Plemmons said the career growth often offsets the initial cost of the degree.
“People who invest in an MBA at a school get their money back because of raises or promotions,” he said. He added, anecdotally, that most people get a 100 percent return on investment within two to three years on the salary side.
The Professional Growth Factor
Aside from the financial potential, Plemmons said an MBA provides people with an exceptional chance to grow professionally. The number one skill he sees people acquire? Confidence.
And with that confidence, he sees a direct translation for professional growth and success.
“They feel more confident to apply for and go for big dog jobs,” he said. “If you maybe started and you felt good as a director, by the time you graduate you have the confidence to go to the C-suite.”
There are things that feed that increased confidence. In-classroom lessons teach hard skills in areas like accounting, finance and marketing. But students also learn to problem solve, work as a team and deliver concise presentations that drive impact.
Plemmons boils this down to a singular idea.
“What really happens at an MBA program is people elevate their probability of successful decisions,” he said. “People who have an MBA know how to use the tools of finance, marketing and HR strategy to increase the probability of good decisions.”
At Daniels, students get to practice these skills in the classroom and through experiential learning opportunities both in the U.S. and abroad. Our programs offer students the ability to travel internationally and build their network by connecting with leaders across the globe.
The Personal Return
Growth doesn’t only happen in your job or your wallet; it can also bleed over into your personal life. MBA programs help you learn about yourself, how you communicate and effective styles for collaboration. Many graduates take these skills home with them, positively impacting their relationships with friends and family.
Plemmons likes the Japanese concept of ikigai, which means a reason for being. He often uses this concept in class and when connecting with students and recent graduates.
“Are you happier and more satisfied in your personal life? And that doesn’t necessarily mean money,” he said. “Are you stepping one step closer to the bullseye of your ikigai?”
At Daniels, academic programs also place a priority on integrity, helping to guide the next generation of ethical business leaders. MBA programs integrate social, environmental and ethical issues into their coursework, giving students the insight they need to become ethical leaders in their jobs and in their daily lives.
Strategies to Maximize Your MBA ROI During and After the Program
1. Set Clear Career Goals from the Start
It’s important to understand the immense potential an MBA program can provide to its students. But you need to hit the ground running to utilize the program to its fullest. Plemmons recommends setting clear career goals from the start and charting your path forward.
Maybe you’re aiming to improve your finance skills, branch out into business analytics or just polish your public speaking ability. Regardless of what your goals are, it’s important that you set them early.
At Daniels, students are also taught crucial lessons about themselves through the Insights Discovery system, which is an evaluation based on the work of the psychologist Carl Jung. The tool creates a foundation for understanding yourself, understanding others and learning to adapt to other preferences to increase the performance and effectiveness of your people.
Plemmons calls it a “mirror,” adding that, “This is how people see you.”
Once you understand yourself, you can better set goals that align with your values and maximize your own personal ROI during and after the program.
2. Leverage Career Services and Alumni Networks
MBA programs provide numerous resources for students during their time on campus and after they graduate. To maximize your MBA ROI, you actually have to take advantage of them. Daniels offers academic advisors, MBA staff support, Career Services and more to its students. Many of these resources are available to alumni as well, meaning Daniels will support you long after graduation.
In addition to these resources, Plemmons advises his students to tap into their classmates, using them as a crucial resource in their personal and professional growth. He has a cautionary tale for those that don’t take advantage of the opportunities available to them.
“Maybe you lost touch or you didn’t stay in touch, you didn’t use the resources, and you didn’t leverage your cohort. And then you call me five years later and say you didn’t get your return on investment. Well, sorry,” he said.
3. Gain Practical Experience Through Projects
An MBA program can serve as an ideal testing ground to practice skills that you want to bring to your work. In many cases, MBA faculty encourage students to bring real-world problems with them to class, working with their classmates to find solutions.
Projects also serve as a strong chance to practice your skills and test your limits.
“We’re going to teach you how to apply tools from finance, accounting and marketing so that you can determine whether you can have enough cash flow to make that business successful,” Plemmons said.
In the full-time MBA program at Daniels, students learn critical business skills by taking on four real-world challenges for corporate and nonprofit partners around the world. Those challenges include:
- Global Challenge
- Corporate Challenge
- Social Challenge
- Entrepreneurship Challenge
The aim is to mimic real-world situations in these immersive challenges, preparing students for when they encounter problems in their careers.
4. Invest in Lifelong Learning and Leadership Development
Ultimately, MBA programs are designed to help students become better and more prepared leaders for their businesses. Plemmons said leadership development accelerates rapidly once you start and MBA program and continues long after you finish.
“We teach them how to lead teams, and then we teach them how to lead big organizations through things like strategy and systems thinking,” he said. “You learn about yourself, learn about how to be more effective as a personal brand, and then learn how to make decisions for your organization.”
And an MBA program teaches you to be in a constant learning posture, ready to make changes to your life and leadership style as you’re exposed to more lessons.
Measuring ROI Post-Graduation
How you measure your ROI post-graduation will depend on the goals you set during your program and where you are in your career. An MBA may help you pivot to a new industry and land your dream job, catapult you into a leadership role or help you better manage your current team. Regardless of your goals, there are some tried and true measures of ROI.
Salary and Career Outcomes
As we mentioned above, your salary potential is likely to elevate following your MBA degree. That same GMAC survey that estimated MBA graduates would make $125,000 per year, estimated that MBA graduates would make 1.75 times the salary of counterparts with only a bachelor’s degree.
“The question is, ‘have you made more money since you went through this?’ And the bell curve for us is really positive,” Plemmons said.
Career Satisfaction and Work-Life Alignment
Fulfillment and happiness can be harder to measure when it comes to ROI, but that is certainly a benefit achieved from these programs. In many cases, an MBA program helps make career aspirations clearer and dials in exactly what you’re looking for in your professional life.
Plemmons recalled a recent meeting with an EMBA graduate that had his career trajectory altered by the program. Instead of advancing in the company he was in, he was motivated to look elsewhere and chase a more mission-based role.
“He thought when he started the program he’d be successful as a director, and then he realized he was so much more. He couldn’t be happier. He couldn’t be more content,” Plemmons said, adding that this isn’t an uncommon story.
Long-Term Network and Reputation ROI
Once you graduate an MBA program, you’re entered into the alumni network of the institution you studied at. At Daniels, that network is 40,000 strong, spread across the country and the globe, leading giant organizations in every industry. That alumni network provides mentorship, introductions for job opportunities and crucial career advice.
Plemmons, a favorite faculty member of recent EMBA graduates, welcomes the continued connection from former students. It further proves the ROI of an MBA.
“We love this question [of alumni ROI] because we want those alumni to stay in touch and come see us,” he said. “And truthfully we have story after story after story of their success and connection.”