What is an MBA degree? Everything you need to know

5 key takeaways about MBA degrees

• MBAs build practical leadership and business skills you can use in any industry.

• MBA programs take 1–3 years, depending on the format you choose.

• Admissions focus on your full profile, including experience, goals, and fit.

• Having an MBA can expand your career options and support long-term salary growth.

• Scholarships and financial aid can help make an MBA more affordable.

Looking to level up your career as a manager or leader? Getting an MBA may be the move. So what does MBA stand for, and what can the degree offer you?

MBA stands for Master of Business Administration—one of the most flexible and widely recognized business degrees in the world. This guide explains what an MBA is, what's required, what types of programs are out there, and how you can fund your degree.

What is an MBA degree?

Put simply, an MBA is a graduate business degree that teaches you how organizations work and how leaders make decisions. Instead of focusing on one area, an MBA gives you a broad foundation in strategy, finance, marketing, operations, analytics, and people management.

Most MBA programs combine classroom learning with real-world practice. You’ll work through case studies, group projects, networking events, and—depending on your program—internships or hands-on business challenges. Students come from many academic backgrounds, because the degree is built to help people pivot or advance no matter their major.

What's the purpose of an MBA degree?

Many students choose an MBA to change careers, move into management, or build long-term earning potential. Others want support to start a business or strengthen their decision-making skills. Whatever your goal, getting an MBA will help you grow as a leader and understand how companies operate.

MBA programs help you understand how different parts of a business connect—from finances and budgets to people management and long-term planning. You’ll gain practical skills, learn to tackle complex problems, and build relationships with classmates, professors, and alumni who can support your goals throughout your career.

MBA degree requirements: What you need to apply

MBA degree requirements differ by program, but most schools look for a mix of academics, experience, and personal strengths. Admissions teams review your background to understand your preparation, goals, and fit for their program.

• Bachelor’s degree from an accredited institution
• Transcripts that show your coursework and GPA
• GMAT or GRE scores (some schools offer waivers or test-optional paths)
• 2–5 years of work experience for full-time programs; more for Executive MBAs (EMBAs)
• Professional resume highlighting growth and impact
• Essays or personal statement explaining your goals
• Letters of recommendation from supervisors or colleagues
• Interview, common in many programs
• English-language test scores for international applicants

What types of MBA programs are there?

MBA programs come in several formats so you can choose one that fits your life and goals. Some offer an immersive, on-campus experience, while others are built for students who need more flexibility to balance work, family, or travel.

• Full-time MBA: Best for career changers or students who can study full-time on campus.
• Part-time MBA: Designed for working professionals who need evening or weekend classes.
• Online MBA: Flexible virtual learning with live and recorded sessions.
• Executive MBA (EMBA): For experienced leaders who want advanced training while working.
• Specialized tracks: Options like finance, analytics, tech, marketing, or healthcare.

How many years does it take to get an MBA degree?

Most MBA programs take one to three years to complete. Your timeline depends on the format you choose, how many courses you take at a time, and whether you want to study full-time or balance school with work and other responsibilities.

• Full-time MBA: About 2 years, often with a summer internship
• Accelerated or one-year MBA: Around 12–18 months
• Part-time MBA: Typically 3–5 years while you keep working
• Online MBA: About 2–3 years, often with flexible pacing
• Executive MBA (EMBA): Usually 18–24 months

What are the benefits of an MBA degree for my career?

An MBA can help you move into leadership roles, open doors to new industries, and strengthen your long-term earning potential. It also gives you practical skills and a network that stays valuable throughout your career.

• Career flexibility: Move into consulting, finance, tech, strategy, operations, or HR.
• Higher earning potential: Many MBA-level roles offer stronger salaries and growth paths.
• Leadership development: Improve communication, planning, and decision-making.
• Networking: Build relationships with classmates, alumni, and employers.
• Entrepreneurship support: Access tools and mentors for launching a business.

Cost and financial aid options for MBA students

MBA program costs vary widely depending on school, format, and location. On average, a two-year MBA program in the U.S. costs around $62,600–$63,000 (tuition, fees, and basic expenses).

For more elite business schools, costs climb by a lot: many charge $75,000–$100,000 per year, and when you include living expenses, books, and other fees, total cost for a two-year degree can easily top $150,000–$200,000 or more. 

If you choose a more affordable path — such as a public university, part-time program, or online MBA — you may spend much less, especially if you qualify for in-state tuition or .

How to pay less for your MBA degree

Start with free money you won't have to pay back, including scholarships, grants, and assistantships or fellowships. Plan to keep working? Definitely look into tuition assistance from your employer.

You'll also want to fill out the Free Application for Federal Student Aid (FAFSA®) to see if you qualify for federal aid

Here are a few Sallie resources:

• Scholly Scholarships: Use our free tool to match with scholarships based on your field of study, background, and more.
• $2K No Essay Scholarship: Enter each month for a chance to win $2,000 for college or grad school.
• Scholly Easy Apply Scholarships: Apply to multiple scholarships with one quick application.
• Scholarships for graduate students: Explore opportunities for students in different types of grad programs.
• Scholarships for business students Find scholarships for business students.

If you need more financial help, a graduate student loan may help you cover the remaining school costs.

Explore your MBA options

Now that you know what an MBA degree is all about, you can start exploring programs that match your goals. Use tools like Scout College Search to search and compare graduate schools by cost, location, average financial aid, and more. With the right plan and support, an MBA can be a strong next step toward the career you want.