To make the calculation, Stephan took into account pre-MBA salaries, lost work time, tuition, and the bigger bucks MBAs reported earning. Stephan assumed that a student loses 18 months of income in a two-year program, allotting summer months for a paid internship. That lost income was combined with the school's tuition over two years. When the pay gain as a result of the MBA equals the total investment in B-school. Includes time spent in school.
Total compensation is deflated by the cost of living index assigned to each school.
Utah's Brigham Young University snatches the ROI crown in the U.S. with a payback period of 3.5 years. George Washington University had the slowest U.S. ROI at 6.3 years. Not surprisingly, the mostly one-year European schools offer the fastest payback period. Another big factor in figuring how long it takes for an MBA to pay off is the career choice a grad makes once school is over. That resulted in a relatively fast ROI of 4.2 years.