EMBA – The Real Cost of an MBA for Executives

By Dawn Z Bournand

 There is no denying that the cost of an MBA is a hefty investment for an executive whether you are self-funding or getting some form of sponsorship from your company. What surprises some new students about the cost of an Executive MBA is the fact that there are a number of other expenses associated with the degree that tuition fees alone usually do not reflect.  Here is a quick run-down of some of the typical add-ons you may encounter when considering the real cost of an MBA.

1. The MBA application fee

If you are only planning to apply to one school, an application fee will not be a major expense but if you choose to apply to a few programs the amount can quickly add up. A typical MBA application fee at a top business school runs between US$200 and US$300. This is one reason why it is wise to shortlist the schools that interest you as soon as possible so you can focus your time and money on the two or three that best fit your criteria.  Also, as part of the application process, many business schools require the GMAT. If you have not been in a classroom for a while, you may find it useful to brush up on your math and verbal skills with test prep classes.  Depending on the classes and the number of hours you want to study in preparation for the test, this - in addition to the application fee - can be an investment you will need to add to your pre-business school expenses.

2. The MBA Admission Interview

Though many business schools are now allowing the admission interview to be conducted online via a video-conferencing line or through a platform like Skype, a number of schools still require an in-person MBA admission interview.  If you do not live close to the school you will need to budget for transportation, hotel and meals as part of your admission interview expenses.  If you are applying to more than one school then multiply your admission interview expenses by the number of schools you want to apply to.

3. Travel costs for the program

Once you have decided on your school of choice and have been successfully admitted to the program, there are still a few more expenses you will need to consider.  If your program is one that offers, or perhaps even requires, trips to other campuses or to businesses around the world, travel costs can quickly add up.  Check with the admissions office to see if any program travel expenses are covered in your program price.  Some schools offer hotel and meals (in which case, your travel costs will just be the transportation fees), so be sure to see if any program travel elements will be taken care of by the school.

4. Executive MBA Textbooks

Looking back to your university days, you will probably remember that textbooks can add up to a significant amount of money.  Executive MBA textbooks are no different and the price tags are not your typical Amazon paperback amounts.  Here too though, your program may step up to help out.  Certain schools actually cover Executive MBA textbook charges and some even give participants an iPad loaded with some of the program’s essential reading. If you do end up having to the foot the bill for your Executive MBA textbooks, you can check out eBay and Amazon to look for used versions of the required textbooks and, if the school has a bookshop, they too will often have used copies for sale.

5. Networking and Socializing

Everyone knows that an EMBA is hard work but what some don’t know is that it can also be hard play. Program participants often take the opportunity to do quite a bit of networking and socializing by getting together for cocktail hours, lunches or dinners. The costs can add up rather quickly though, especially if you did not have a network and socializing budget before starting the program.

By keeping these five extra expenses in mind you will be well prepared for your EMBA journey and will not have to go through sticker shock each and every time you are asked to add something else to the cost of your executive MBA.