MBA vs Masters: Which is Better for Your Career

Choosing between a Master of Business Administration (MBA) and a specialised master’s degree is a critical decision for your postgraduate journey. The fundamental difference lies in work experience and career focus: an MBA is a generalist management degree for professionals with 3-5 years of experience aiming for leadership roles, while a master’s degree is for recent graduates or early-career professionals seeking to build deep expertise in a specific field like finance or data analytics. An MBA typically leads to a higher salary, with a median of around USD 115,000 compared to a Master's in Management at USD 85,000, reflecting the return on significant work experience.

If you’ve completed your undergraduate degree, you might be researching and investigating your options. One of these could be a postgraduate qualification. Furthering your education and gaining new skills is a great way to enhance your career and develop personally. Popular postgraduate choices are a master’s degree or an MBA. You may be familiar with both, but not sure what makes them different. In this article, we’ll answer this question, explain the entry requirements and some of the reasons students pursue these degrees.

1. What is a master’s degree?
2. Why study for a master's degree?
3. Master's degree entry requirements
4. What is an MBA?
5. Why study for an MBA?
6. MBA entry requirements

MBA vs Masters: At a Glance

To help you understand the core differences quickly, here is a comprehensive comparison of the two qualifications.

What is a master’s degree?

A master’s degree is a postgraduate qualification with an education level higher than an undergraduate degree but below a PhD. A master’s degree has an educational rating, which will depend on the country you study in. Some examples include:

• Australia - Level 9 qualification (Australian Qualification Framework)
• New Zealand - Level 9 qualification (New Zealand Qualifications Framework)
• Ireland - Level 9 qualification (National Qualifications Framework)
• UK - Level 7 qualification (Framework for Higher Education Qualification)

A master’s degree usually takes one year of full-time study or two years part-time. Degrees are offered as research only or taught, depending on your specialisation. Students must fulfil a certain number of credits to receive the qualification. To illustrate the difference between an undergraduate degree and a master’s degree, you must complete 120 credits in a year for the former but 180 for the latter in the UK. 

You have many choices of degree types, subjects and specialisations you can study for a master’s degree. Some popular choices include an MA, MSc or MPhil degree. Subjects popular amongst international students include:

• Engineering 
• Computer science 
• Political science 
• Psychology
• Pharmacology
• Law 
• Data science 
• Neuroscience

Remember that there are also professional and academic master’s degrees. A professional degree focuses on preparing you for industry requirements, while an academic degree may be more theoretical and research-based. Generally, a taught master’s degree is more likely to be a professional degree. This involves seminars, lectures, examinations and workshops. With an academic research master's degree, you work independently to produce a dissertation or thesis with the help of an academic supervisor. Students often report that a master's degree is more fast-paced than an undergraduate degree and that the content is more advanced.

Discover more about the most popular postgraduate degrees for international students. 

Why study for a master's degree?

There are a few key reasons why students choose to pursue a master’s degree:

• Deep Specialisation: It allows you to become a true expert in a specific field, gaining technical skills and in-depth knowledge that can set you apart.

• Career Entry: For many professions (like data science, clinical psychology, or engineering), a master’s degree is the standard entry-level qualification.

• Pathway to PhD: A research-based master’s (like an MPhil or MSc with a significant thesis component) is often a prerequisite for doctoral studies.

• Faster ROI: While the starting salary may be lower than an MBA, the lower cost and shorter duration of many master’s programmes can lead to a quicker return on investment. 

Learn more about how you can transfer to a university abroad. 

Master's degree entry requirements

Entry requirements for a master’s degree will differ according to the university and country you wish to study in. However, some of the common entry criteria are:

• An undergraduate degree with a minimum grade of 2:1 or equivalent.
• Proof of English language proficiency (IELTS / TOEFL)
• A statement of purpose
• Letters of recommendation
• Work Experience: Generally, master’s programmes do not require extensive work experience. They are designed for students progressing directly from their undergraduate studies or those with 0-3 years of experience looking to specialise. 

Because a master’s degree requires students to engage at a higher academic level, academic achievement at the undergraduate level is an important qualifying criterion. For most master’s degrees, you must have a 2:1 degree or equivalent at the undergraduate level. This is a GPA of above 3.5 or a percentage result above 65 per cent. Sometimes you may have to submit a portfolio and attend an admission interview. English language proficiency is also important. Usually an IELTS score of 6.5 with no band lower than 6.0 is needed. 

Explore our detailed guide on how to apply for a master’s degree. 

What is an MBA?

An MBA is a Master of Business Administration. It is an internationally recognised qualification that provides you with the skills for a career in business and management. An MBA degree can give you a significant career boost, providing you with new opportunities, a higher salary and a promotion. An MBA is one of the most popular professional degrees in the world.

An MBA curriculum is designed to equip students with a broad, holistic understanding of all business functions. Core modules typically include:

• Finance
• Marketing
• Strategy
• Operations Management
• Human Resources
• Leadership

Many programmes also offer specialisations, allowing students to focus on areas like entrepreneurship, international business, or technology management.

Discover more about MBA specialisations. 

Why study for an MBA?

An MBA is a significant investment of time and money, but the returns can be substantial. Key reasons for pursuing an MBA include:

• Career Acceleration & Pivoting: An MBA is often the fastest route to senior management and leadership roles. It is also a powerful tool for making a significant career change, whether switching industries, functions, or geographical locations.
• Leadership Development: The curriculum is explicitly designed to develop the strategic thinking, decision-making, and leadership skills required to manage teams and organisations.
• Networking: Business schools provide access to an extensive and influential network of alumni, faculty, and corporate partners, which can be invaluable for career opportunities.
• Higher Earning Potential: As a qualification for experienced professionals, an MBA commands a significant salary premium in the job market.

Another advantage of studying for an MBA is that these qualifications are often globally accredited and recognised. Always check that the institution you study at and that the MBA you pursue has accreditation. This can include being recognised by professional associations like the Association of MBAs (AMBA), the Association to Advance Collegiate Schools of Business (AACSB), and the Chartered Management Institute (CMI).   

Get more information on the top jobs for MBA graduates. 

MBA entry requirements

An MBA has a reputation for being academically and intellectually demanding. This means that most MBA programmes have high entry requirements and additional criteria for successful admission. The main criteria you will have to meet are:

• An undergraduate or postgraduate degree with a minimum result of 2:1 or above. This is equivalent to a GPA of 3.5 to 4.0 or a percentage of 70 per cent or above. 
• At least three years of relevant work experience. 
• An IELTS score of 7.0 or above with no band lower than 6.5. 
• A GMAT (General Management Admission Test) score of 650 or above. A score of 700 is seen as highly desirable. 
• A comprehensive and detailed CV. 
• Two references, one academic and one professional.

MBA vs Masters Salary Comparison

For many students, the potential return on investment is a major factor in the decision between an MBA and a master’s degree. While both qualifications lead to higher earning potential, the salary outcomes are distinctly different, primarily due to the work experience prerequisite for MBA programmes.

• MBA Salaries: Graduates of MBA programmes command some of the highest salaries in the postgraduate market. According to recent data, the median starting salary for MBA graduates is in the range of USD 99,000 to USD 125,000. This figure can be even higher for graduates of top-tier business schools, often exceeding USD 150,000. This high salary reflects the fact that MBA graduates are hired into mid-to-senior level management and leadership roles.

• Master’s Degree Salaries: The salary for a specialised master’s graduate is typically lower than an MBA but still represents a significant increase over an undergraduate degree. For a Master’s in Management (MiM), a common comparison point to the MBA, the median salary is around USD 83,000 to USD 88,000. For highly technical and in-demand fields like a Master’s in Data Science or Quantitative Finance, starting salaries can be very competitive and may overlap with the lower end of the MBA range.

The 15-20% salary premium for an MBA is a direct reflection of the value employers place on several years of professional experience combined with a general management education.

When to Choose an MBA vs a Masters

Making the right choice depends entirely on your personal circumstances, career stage, and future ambitions.

When to Choose a Masters

•  You are a recent graduate or have less than 3 years of work experience.

•  You want to become a technical expert in a specific field (e.g., finance, marketing analytics, supply chain management).

•  You need a specific qualification to enter your desired profession.

•  You plan to pursue a PhD and need a research-focused degree.

•  You are looking for a shorter, more affordable qualification with a faster ROI.

When to Choose an MBA

• You have 3-5+ years of significant professional work experience.

•  You want to move into a leadership or management role.

•  You want to make a significant career pivot (change industry, function, or country).

•  You want to build a broad, high-level strategic understanding of business.

•  You want to build a powerful professional network for senior-level opportunities.

Some MBA programmes may also conduct admission interviews or entrance tests. Always check with your prospective university or speak with an education counsellor to make sure.  

Hopefully, you now understand the differences between a master’s degree and an MBA. If you want to continue your research, you can explore our guide to STEM master’s degrees and the best universities for an MBA.

Frequently Asked Questions (FAQ)

1. Can I do both an MBA and a master’s degree?

Yes, and it is a common educational path. Many professionals start their careers with a specialised master’s degree to gain technical skills and then, after gaining several years of work experience, pursue an MBA to transition into leadership roles. This combination can be very powerful, blending deep expertise with broad management capability.

2. Which is better for a career change: an MBA or a master’s?

An MBA is generally considered the superior choice for a significant career change. The broad curriculum provides a solid foundation in all areas of business, and the extensive networking opportunities are invaluable for breaking into a new industry or function. A specialised master’s is better for a more focused career shift within your existing field.

3. Is an MBA worth the higher cost compared to a master’s?

For the right candidate, yes. The higher cost of an MBA is an investment in higher future earning potential, access to a more senior professional network, and greater career flexibility. The return on investment (ROI) for an MBA is well-documented, but it is most effective for professionals with the requisite work experience to leverage the qualification for a significant career leap.