Does ISB Really Offer a Better ROI Than a US MBA?
When considering an MBA abroad vs an MBA in India, cost is one of the biggest deciding factors. Many applicants assume that ISB is much cheaper than a US MBA, making it the more logical choice. But is that really true when you factor in career growth, salary, and long-term ROI?
Let’s take a real-world example:
One of my applicants got accepted to Duke Fuqua (a Top 10 US MBA) and ISB. Initially, he assumed ISB was 40% cheaper and chose ISB to “save money.” But was that the best financial decision? Let’s break it down.
1️⃣ MBA Cost Comparison: ISB vs Duke Fuqua
Many students focus on the sticker price of an MBA, but they ignore financial aid, loan terms, and post-MBA salary growth. Here’s how the numbers compare:
| Category | Duke Fuqua (Top 10 US MBA) | ISB (Indian MBA) |
|---|---|---|
| Tuition Fees | ₹1.2 crores ($140,000) | ₹45 lakhs ($54,000) |
| Living Expenses | ₹25 lakhs ($30,000) | ₹7-8 lakhs ($10,000) |
| Total Cost | ₹1.45 crores ($170,000) | ₹52-55 lakhs ($65,000) |
At first glance, ISB seems like a much cheaper option, but cost alone doesn’t determine ROI.
2️⃣ Loan Repayment Terms & Interest Rates
Many students finance their MBA through education loans, but the loan structure for US MBAs is significantly different from Indian MBAs.
| Factor | Duke Fuqua (Top 10 US MBA) | ISB (Indian MBA) |
|---|---|---|
| Loan Tenure | 20 years | 15 years |
| Interest Rate | 5.5% (US loan) | 10.5% (Indian loan) |
| Monthly EMI (10-yr repayment) | ₹1.2 lakhs ($1,500) | ₹50,000 ($600) |
👉 Key Takeaway: US MBAs offer longer repayment periods and lower interest rates, making it easier to manage loan repayments compared to ISB.
3️⃣ Post-MBA Salary & Career Growth
The biggest difference in ISB vs US MBA ROI comes from post-MBA salaries. The starting salary determines how quickly you can repay your loan and accumulate wealth.
| Post-MBA Factor | Duke Fuqua (Top 10 US MBA) | ISB (Indian MBA) |
|---|---|---|
| Average Salary | ₹1.24 crores ($150,000) | ₹35-40 lakhs ($45,000-$50,000) |
| Joining Bonus | ₹23 lakhs ($28,000) | No fixed data |
| Average Salary Growth in 5 Years | ₹2.1-2.5 crores ($250,000-$300,000) | ₹60-80 lakhs ($75,000-$100,000) |
📌 What This Means:
✔️ US MBAs offer nearly 3x the salary compared to ISB.
✔️ Within 5 years post-MBA, US MBAs can surpass ₹2 crores in earnings.
✔️ ISB graduates take longer to reach the same financial level.
4️⃣ Long-Term ROI: Which MBA Pays Off Better?
If we calculate ROI based on career earnings, a Top 10 US MBA outweighs ISB in financial returns.
Salary Growth Over 10 Years
| Year | Duke Fuqua (US MBA) | ISB (Indian MBA) |
|---|---|---|
| Year 1 | ₹1.24 crores ($150,000) | ₹40 lakhs ($50,000) |
| Year 3 | ₹1.7 crores ($210,000) | ₹55 lakhs ($70,000) |
| Year 5 | ₹2.3 crores ($280,000) | ₹70 lakhs ($90,000) |
| Year 10 | ₹3.5-5 crores ($450,000-$600,000) | ₹1.2 crores ($150,000) |
💡 What This Means for You:
✔️ A US MBA recovers the investment in 5-7 years.
✔️ ISB graduates take 10+ years to reach a US MBA’s Year 5 salary.
✔️ If career growth, global mobility, and wealth-building are priorities, a Top 10 US MBA wins.
5️⃣ Career Growth & Global Opportunities
Your MBA is more than just a degree—it’s about the opportunities it unlocks.
Global Career Mobility
- US MBAs: Recruit internationally, allowing graduates to work in consulting, finance, tech, and entrepreneurship across the US, Europe, and Asia.
- ISB Graduates: Typically recruited for India-based roles, with fewer global placements.
Access to Fortune 500 Companies
Top US B-Schools have deep connections with Fortune 500 firms, whereas ISB’s international presence is still growing.
Final Verdict: ISB vs Top 10 US MBA
If cost is your ONLY factor, ISB might seem like a cheaper choice. However, when you factor in post-MBA salaries, loan repayment terms, career growth, and long-term financial impact, a Top 10 US MBA provides higher ROI and better opportunities.
| Factor | Duke Fuqua (US MBA) | ISB (Indian MBA) |
|---|---|---|
| Upfront Cost | High (~₹1.2 crores) | Low (~₹45 lakhs) |
| Loan Repayment | 20 years, low interest | 15 years, high interest |
| Salary (Post-MBA) | ₹1.24 crores ($150,000) | ₹35-40 lakhs ($45,000-$50,000) |
| Career Mobility | Global | Mostly India |
| 5-Year Earnings | ₹2.5 crores+ ($300,000) | ₹80 lakhs ($100,000) |
| 10-Year Earnings | ₹5 crores+ ($600,000) | ₹1.2 crores ($150,000) |
✅ Choose ISB if:
- You want to work in India and prefer a lower upfront investment.
- You are not planning to work internationally immediately after MBA.
✅ Choose a US MBA if:
- You aim for a global career with higher salary potential.
- You want access to Fortune 500 companies & global recruiters.
- You are looking for long-term financial ROI rather than short-term savings.
Final Thought
MBA is a long-term investment, not just an upfront expense.
If global opportunities, higher salaries, and wealth-building are your goals, a Top 10 US MBA offers better ROI than ISB.
Still unsure about your MBA decision? Let’s discuss your options here.
