Is an MBA worth doing for someone earning 20+ LPA in IT/consulting at 2 years of experience?
At 20+ LPA with just two years of experience in IT or consulting, an MBA's financial ROI narrows considerably, but the decision hinges on your career pivot goals and target school tier. If you're aiming for the top 5 IIMs (Ahmedabad, Bangalore, Calcutta, Lucknow, Kozhikode) or XLRI, the non-monetary returns like alumni networks, brand equity, and role transitions can justify the opportunity cost.
Below that tier, the math gets harder to defend unless you have a clear pivot in mind.
The Financial Equation
Your current ₹20 L base puts you close to the average placement figures at many tier-2 B-schools. IIM Ahmedabad's Class 2025 median sat at ₹34 LPA, while IIM Bangalore reported ₹33.8 LPA. Factor in two years of lost salary (roughly ₹40-45 L) plus fees of ₹25-28 L at top IIMs, and you're looking at a ₹65-73 L total cost. Payback typically takes 3-4 years even at the best schools, longer if you land in the median band rather than the top quartile.
From Reddit, we learnt that engineers earning well in product or consulting roles often regret the MBA if they don't crack McKinsey, BCG, Bain, or Goldman Sachs type offers. The incremental jump from ₹20 LPA to ₹28-30 LPA in a general management role feels underwhelming after two years out of the workforce.
When It Still Makes Sense
An MBA remains valuable if you're targeting a hard pivot that your current resume can't unlock. Investment banking and private equity roles at Goldman Sachs, JP Morgan, or Blackstone are nearly impossible to enter laterally without a top-5 MBA stamp. Similarly, MBB consulting (McKinsey, BCG, Bain) recruits heavily from IIM A, IIM B, IIM C, and XLRI, but rarely from tier-2 schools.
ISB Hyderabad is a strong choice for consulting pivots, placing 30-35% of each cohort into strategy roles, but it's weaker for finance transitions. If you're already in consulting and want to stay there, the one-year format limits your opportunity cost to roughly ₹20 L salary plus ₹42 L fees, making the payback faster.
The Tier-2 Trap
Schools outside the top 10 struggle to justify the cost at your salary level. FMS Delhi is an exception due to its ₹20,000 total fees and ₹34.5 LPA median, but admission is a lottery. For most others, the placement average hovers near ₹18-22 LPA, meaning you'd graduate earning roughly what you make today, but with two years of compounding salary growth and savings lost. You can compare colleges side-by-side to see fee-to-placement ratios.
The Non-Monetary Case
If money isn't the primary driver, top IIMs offer unmatched peer quality, cross-functional exposure, and a alumni network that opens doors decades later. Founders, CXOs, and board members disproportionately come from IIM A, IIM B, and IIM C.
That said, these benefits compound only if you actively engage with the ecosystem post-graduation.
Pro Tip: If you're on the fence, target a 99+%ile on CAT and apply only to the top 5-6 schools. A lower percentile forces you into tier-2 options where the ROI at your current salary becomes negative.
Use the CAT prep planner to map your attempt strategy.