The cost-benefit calculation of a business Master’s degree

13 October 2026

Andrew Crisp looks behind the findings in the new Tomorrow’s Masters report to understand why cost is becoming such a big factor in decision-making among prospective students.

While researching for a recent client project, I came across the startling finding that there are more than 30,000 people in the world with assets of $100 million or more.  Of course, few will be looking for a business Master’s degree but may be some of their children and grandchildren might be thinking about such an option.  Not that this should be a reason for complacency among business schools.

CarringtonCrisp’s latest Tomorrow’s Master’s report found that while there remains strong demand for a Master’s degree, cost is becoming an ever more important factor in decision-making.  Living costs while studying are cited by 51% as a reason not to pursue a Master's degree – up from 48% last year – and inability to pay fees is a concern for 44%, up from 40%. When choosing a provider, total fees and other costs have risen to become the single most important consideration, selected by 31% of respondents.

You don’t have to look too far to understand why cost concerns may be on the agenda for many prospective students.  A quick chat with Claude suggests that many of the top 10 schools in the FT MiM ranking have increased fees by more than 20% in the last decade, with one increasing fees by 94%.  At the same time entry level salaries at one of the leading consulting firms in London have increased by less than 15% in the same period, while overall inflation based on the CPI index suggests a 42% rise over the decade.  Even in the New York office of the same consulting firm, where salaries have risen faster than in the UK, the real increase in salaries over a decade is close to zero.

Of course, part of the ROI of taking a Master’s is getting a better starting job than a student might obtain with just an undergraduate degree.  And if all works out, getting more rapid acceleration in a career.  However, this all assumes that you can get a job, let alone at one of the leading consulting firms. 

For many Master’s graduates today, entry to the world of work has been dominated by article after article suggesting the labour market is more competitive than ever, with many firms cutting entry-level positions and instead turning to AI to boost productivity.  Uncertainty about jobs compounded by cost fears could turn into a toxic situation for prospective Master’s students and business schools.

For now, that’s not the case.  More flexible approaches to study which can mitigate cost concerns, allowing students to work and study at the same time, as well as a growing market for post-experience study, where candidates prefer a Master’s to an MBA, ensure continuing strong demand for study.

For business schools, part of the solution to maintain a strong candidate pipeline means showing how they develop the skills employers are seeking.  Within a Master’s degree, as well as core content students need to learn how to apply AI effectively and the judgement and critical thinking to make the most of AI.  Prospective students will also want to see the investment in career services that schools are making to support their graduates now, and in the future as alumni.

Discover more about the new Tomorrow’s Masters degree at https://www.carringtoncrisp.com/intelligence/tomorrows-masters/