Return on Investment Comparison: MIM vs MBA

Everything that our dads did was planned like an ROI (return on Investment). The day I learned about this concept, I applied it to the car I wished to buy. Believe me, it shattered my hopes beyond imagination! 

Before we purchase anything we want to establish the value. In the same way, it only makes sense to try to compare an MiM with an MBA on the basis of their ROI. 

A few points to begin with:

• The MiM costs less. 
• Finance: The tuition cost is half of an MBA. 
• Living cost: Since the duration of an MiM program  is typically half of an MBA, you have to shell out extravagant living costs (!) for only half the time.

• Total MiM: approximately 50000€ or INR 31 L
• Total MBA: approximately 104500€ or INR 82 L

The next step is to calculate the ROI. 

Very clearly the MiM ROI is way higher in the short term. This gets further enhanced for the programs which are 2 years in duration with MIMs offering close to twice the ROI compared to an MBA.

Age and years of experience

For an MiM: There’s yet one more point of importance to note. After graduation (age 21), you can expect to finish your MiM by the age of 23. This puts you in a position to begin benefitting from your education by the age of 27. You will be completely prepped and ready to take on the business world with hopefully no education loans.

For an MBA: After graduation at 21, you require 4-6 years of work experience to join an MBA. You finish the MBA (2 years) at the age of 27. Add 5 years for a good ROI to materialize, that’s 32 years. At 32 years of age, you are at a mid-level business profile in your career with all the education you need and hopefully no loans or debt. 

In many countries, especially  India, there is virtually no difference between an MiM and an MBA program. In fact, people who get MIM equivalent degrees from top IIMs seem to be doing far better compared to people who get  MBA degrees from places like ISB.

A case study would explain the ROI on an MiM even better - 

Case (A) - No MiM after undergraduate studies

Initial salary in India ~ 8 L/ year with increments of 20%. Assuming that you graduate at the age of 21 years, you would have earned close to Rs. 60 L over the next 5 years. Plus given that a lot of people would have got a business degree in the interim, you would be at a disadvantage compared to those people.

Case (B) - 1 year MiM after UG, followed by a job in India

Initial salary in India ~ 25 L/ year with increments of 20%. Assuming that you spend 1 year in getting the MIM, you would earn close to 186 L over the next 4 years. Netting off the cost of MIM, you shall still earn 140 L in the equivalent duration. This is much higher than what you would have earned in Case A. What is even better is the fact that now you are in a situation wherein you are reaching the middle-level management positions in your chosen role and are therefore positioned to turbocharge your career’s growth even more aggressively.

Case (C) - 1 year MiM after UG, followed by a job abroad

This is similar to case B but with an ability to earn a dollar-denominated salary, but more importantly global exposure to your professional track. You will start off with 63,000 Euros but would end up growing your salary at a slower pace, given that you are working in mature economies ~ 10%. Over the next 4  years, you would have netted close to 180 L after reducing the cost of your MIM tuition. Plus you are in a pretty good position with respect to your global career - either in India or outside, with multi-faceted experience and middle-level positioning. 

Did you know UAH can help you get into the Top 25 B schools and Top MIM courses? Find out more about our MBA Admission Counselling to see how we can help you gain admission to your dream Business School!

In summary, an MiM offers a very high ROI on your education investment - both in monetary terms and your career progression opportunities. That is why MiM programs have become extremely popular in a very short span of time and might take you one step closer to your end goal a little faster, a little earlier in your life.