In some ways, deciding to go back to school is the easiest part of the process when it comes to the master’s in business administration (MBA). Then comes the hard part—rigorously researching the top MBA programs, preparing application materials, and ultimately finding out what type of program is best for your life.
All of this is challenging simply because there’s so many options—not only in terms of universities but also in the number of lengths, specializations, and formats. One of the biggest decisions comes down to one major distinction: whether to pursue an MBA online or in-person. While the latter has historically been the more traditional route, online learning continues to be a growing space.
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Largely, online MBAs provide similar learning experiences—just with added flexibility and affordability, but at the expense of in-person networking.
And even with this in mind, “online MBAs are not all the same,” says Kate Barraclough, head of the MBA program at Carnegie Mellon’s Tepper School of Business—which is home to the No. 2 best online MBA in 2024, according to Fortune’s ranking.
In addition to determining what they want to get out of graduate school and what their career goals are, prospective students should research the curriculum, she says. “Is it the same degree, or am I following a different curriculum path? And if so, what does that curriculum mean?”
So, if you think an online store may be something you might want to pursue, but you are still unsure—Fortune has answers to some of the top questions.
Who’s a good fit for an online MBA?
Online MBAs are great for individuals who are self-motivated and place immense value on flexibility. Students can attend synchronous or asynchronous classes, study, and take quizzes from the comfort of your home. This is good news for those who may have work, family, or personal obligations that leave less time to visit campus.
Moreover, one major selling point of many online MBA programs, including Indiana University’s Kelley School of Business—the best online MBA program in the country for 2024—is that the faculty are shared with the traditional, in-person MBA. This means that largely, the curriculum and learning experiences are similar.
Will Geoghegan, chair of IU online MBA program, Kelley Direct, takes pride in how closely intertwined the traditional and online programs are.
“I’ve joked about this numerous times—that coming away from my strategy class in the full-time [traditional] MBA versus the Kelley Direct, [students] should have exactly the same scores on the final exam. So when it comes to rigor, the rigor is exactly the same,” says Geoghegan, who teaches courses both online and in person.
Given that online MBA programs typically skew toward older students who are already established at their company, Geoghegan says he tries to tailor his courses to account for the differences in the in-person and online cohorts. The in-person MBA, he notes, tends to have more people looking at a career change into business.
“But they’re not mutually exclusive,” he says of the types of students who pursue online versus in-person MBAs. Another nuance that might appear in the online cohort is that the students have determined they don’t want to leave the workforce to get an MBA. “The opportunity cost may be prohibitive for them. They may have families, for example, and they tend to really like their companies and their industries.”
But that’s not always the case. At Tepper, for example, the online students don’t necessarily trend older, Barraclough notes. And the integration of the online and in-person programs at Tepper mean students occasionally switch between the two, if there’s a change in their circumstances. Still, there can be differences in students’ career goals.
“Many of our students in the online program are what we would call career growers,” she says. “So they’re currently employed; they’re looking to stay in their current company and grow through that company.”
Is an online MBA worth it?
Despite online and traditional MBAs having similar academic standards, there remains several distinct differences.
The full-time, in-person MBA comes with the campus experience and constant, organic networking. International students get the advantage of access to the proper visas. And without a full-time job, “you get to dedicate all your time and energy holistically to your MBA,” Geoghegan says.
On the other hand, Barraclough notes, Tepper’s online program comes with greater flexibility than the in-person program, which is handy for people who are working, traveling, or in the military. Networking and job placement assistance might look different, but those university resources are still available for online students at Tepper and Kelley.
The pros and cons of an online MBA
Pros
- Flexibility: Learning from any institution can occur anywhere.
- Affordability: Programs are oftentimes cheaper online versus in-person.
- Growth in a digital environment: Many jobs nowadays are hybrid, so the skills you learn through an online degree are transferable.
Cons
- Less networking opportunities: Meeting peers in-person simply cannot be fully emulated in a virtual experience.
- Less time with your professors: Students cannot as easily ask a professor a question after class or quickly drop in their office.
- Less school spirit: You may not feel as bonded to your alma mater being a remote learner.
Since online students are typically working full-time, they get to apply their lessons directly, and immediately, to their workplace. And many students even receive promotions during or shortly after program completion.
How much is an online MBA?
The total cost of an online MBA can range dramatically—anywhere from around $30,000 all the way up to close to $130,000.
Kelley estimates that the total cost (including tuition, fees, and living expenses) will be about $55,800 each year (for two years) for in-state in-person MBA students, and about $81,400 for out-of-state students. The total cost to complete the Kelley Direct program—regardless of location and living expenses, since they’ll vary—is estimated at $94,944, total.
At other schools, the online MBA could cost you much less or much more. For example, at the University of Iowa (Tippie), the total program tuition is $33,750. At the University of North Carolina (Kenan-Flagler), the total tuition is $125,589. Both rank in the top 10 of Fortune’s best online MBA programs for 2024.
Another advantage of completing an online MBA? Since many online MBAs are designed to be completed while working, students don’t have to forgo a salary while pursuing their education.
How to choose an online MBA program
There are many factors to consider when picking an online MBA program, but here are a few steps to help you along the way:
- Figure out what you value the most: Rank factors like affordability, flexibility, networking, learning experience, curriculum and prestige. If flexibility is high on your priority list, then an online MBA may be a great place but only if you know you can learn well behind a screen.
- Prioritize learning opportunities: Search for programs with specializations or concentrations that cater to your interests, can help boost your career, and maybe even apply to your current job.
- Network with current students or alumni: The best way to learn about an online MBA program is to talk to a student or recent graduate. Hear about their experience, what they like and don’t like about the program, and if they think you would be a good fit for the program. Importantly, figure out their why factor as to why they chose to enroll.
- Carve your own path: Only you can know what program is best for you. Weigh the pros and cons of programs you apply to and eventually be accepted into. Every student has a unique journey, including yourself, so ultimately, you will get out whatever you put into any program.
The takeaway
For many students, the online MBA is the best of both worlds: a high-quality graduate-level business education with the flexibility to work simultaneously or take care of family members.
In fact, for students that place a heavy emphasis on the credential and education side of the MBA experience, then an online or part-time program can be a great way to learn, says J.P. Eggers, vice dean for MBA and graduate programs at NYU’s Stern School of Business.
“If what a student mostly needs is—and what they're after is—the credential and the education, there's a lot of evidence that many of the elements that are available through online programs or part time programs can be really good at ways to deliver those things,” adds Eggers, who soon will lead the Stern school as its interim dean.
Above all, there is no perfect MBA program or format. What it comes down to is what works best for you, your career trajectory, and life goals. There are countless examples of people with very successful careers with or without an online MBA. You just have to have the passion to carve your own path.
Frequently asked questions
Is it better to do an MBA in person or online?
No MBA format is better, but in-person MBAs are typically more suited for those who place a high value on networking. Online MBAs are better for individuals who desire flexibility in their learning.
Are online MBA degrees respectable?
Yes, online MBA degrees are as respectable as any other degree. Online learning is more popular than ever, and most employers do not care whether your degree was obtained in-person versus online—as long as you can prove what you learned.
Is an online MBA taken seriously?
Yes, an online MBA is taken as seriously as any other MBA. In fact, most employers are not checking what format your MBA was obtained. The translatable skills matter more.
Check out all of Fortune’s rankings of degree programs, and learn more about specific career paths.
Nick Roll contributed to this piece.
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About the contributors
Preston Fore is a staff writer at Fortune Recommends, covering education and its intersection with business, technology, and beyond. Preston graduated from the University of North Carolina at Chapel Hill, where he studied journalism and global studies. His previous work can be found in The Daily Tar Heel and CNN.