How Much Is An MBA Degree Really Worth? And how much more money does an MBA from Harvard, Stanford or Wharton get you over a career than one from Texas A&M, Ohio State, or the University of Iowa?

By John A. Byrne

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

LinkedIn Influencer, John A. Byrne, published this post originally on LinkedIn.

What's an MBA degree really worth? And how much more money does an MBA from Harvard, Stanford or Wharton get you over a career than one from Texas A&M, Ohio State, or the University of Iowa?

Those are questions that perplex and confound many who are deciding whether to get the degree and, if so, where to get it from. Not everyone can get into the most highly selective business schools. So many candidates have to face the question over whether it's worth getting the MBA from a second- or even third-tier school.

A new analysis done exclusively for Poets&Quants by PayScale, which collects salary data from individuals through online pay comparison tools, shows that the MBA–even from schools that lack global or national caché–delivers hefty seven-figure income over a 20-year period. PayScale used its database of MBA graduates at the top 50 U.S. schools to calculate an estimate of median pay and bonus over the entire 20-year span.

Related: Sustainability & Social Impact At Business (LinkedIn)

The numbers are conservative. They do not include stock-based compensation of any kind, the cash value of retirements benefits, or other non-cash benefits, such as health care. The estimates are for base salary, cash bonuses and profit sharing in today's dollars over a 20-year period from from 1994 to 2014. They are not a projection of future earnings. But the estimates show that the MBA degree–despite all the second-guessing over its value since the Great Recession–is one of the surest paths to a lucrative career.

For the most part, the results are exactly what you would expect: The highly ranked, big brand schools tend to deliver the highest earnings over a 20-year period. Harvard Business School's MBAs come out on top, with median income of $3.233,000. Stanford MBA holders are next with $3,011,000, and Wharton comes in third with $2,989,000. Harvard MBAs, in fact, earned nearly twice as much as MBAs from Texas A&M's Mays Business School who pull in $1,781,820 over 20 years.

"It is not surprising that where you get your MBA has a strong association with your income potential," says Robert Bruner, dean of the University of Virginia's Darden School. "There is a winners-take-all self-reinforcing cycle in higher education: certain schools attract excellent student talent, which in turn attracts intense recruiter activity and high-salary offers. The employment results make it easier for those schools to attract excellent student talent…and the cycle continues."

Related: More Great Business MOOCs For October (LinkedIn)

Here are the top ten:

1. Harvard Business School: $3,233,000

2. Stanford Graduate School of Business: $3,011,000

3. University of Pennsylvania (Wharton): $2,989,000

4. UC-Berkeley (Haas): $2,858,000

5. Columbia Business School: $2,796,000

6. MIT (Sloan): $2,858,000

7. University of Virginia (Darden): $2,705,000

8. Dartmouth College (Tuck): $2,703,000

9. New York University (Stern): $2,639,000

10. UCLA (Anderson): $2,593,000

To see the 20-year income numbers for the next 40 business schools and additional analysis, check out the article on PoetsandQuants.com.

Wavy Line
John A. Byrne

Chairman and Editor-in-Chief, C-Change Media Inc.

John A. Byrne is chairman and editor-in-chief of C-Change Media Inc., a digital media company creating niche business websites like PoetsandQuants.com. Previously, he served as editor-in-chief of Businessweek.com and editor-in-chief of Fast Company magazine.

Editor's Pick

'Catastrophic': Here's What You Should Know About the Debt Ceiling Crisis — And How a Default Could Impact Your Business
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

'All Hell Is Going to Break Loose': Barbara Corcoran Issues Warning About Real Estate Market, Interest Rates

The "Shark Tank" star appeared on FOX Business' "The Clayman Countdown" this week.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Science & Technology

How to Make a QR Code in 5 Simple Steps

Need to know how to make a QR code for your business but not sure where to start? Check out this step-by-step breakdown for more info.

Money & Finance

3 Ways to Create Multiple (Big) Streams of Income

Here are three ways to create multiple streams of income. These strategies require effort and resources but offer significant financial potential.

Starting a Business

What Is an LLC? Here's How It Works.

Deciding whether or not your business should be an LLC is a big decision. Continue reading to learn the pros and cons of starting your own LLC.