MBA Banking NPV Calculator

Over the course of 15 years in investment banking (my base case is MM, being conservative on salaries and bonuses (=bad years assumed lol)). I am having trouble finding accurate data This is what I am using so far... any suggestions

Base Case: MM, West-Coast Office, for a top 10-15 MBA: Year 1 Graduated = 130-160k USD (base+bonus) increasing 6% annually Year 5 Graduated = 200-250k (base+bonus) increasing 5% annually Year 10 Graduated = 300-400k (base+bonus) increasing 3% annually

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Best Response

Those income numbers are way low compared to BB/EB in NYC/SF. I guess I'm unsure about how much lower MM income is, but that would surprise me. And 10 years after graduation, you are either starting to bring in your own business (So income stops increasing lock step and instead is far more variable with higher upside) or you are leaving banking, in which case 300k makes more sense.

Regardless of that, your calculator simply doesn't strike me as that useful considering that 50%+ wont be in banking for 5 years and 75%+ won't be for 10. Careers take significant twists and turns, even moving banks, which makes income extremely variable. And at a typical BB income, most MBA programs will be ROI positive within only a few years after graduation.

 

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