What Kind of Salary Can You Expect with a Master’s in Business Analytics?

As companies continue to expand their data operations to capture value from the massive amounts of data produced from business operations and the world at large each year, they’re not only looking to staff teams of highly skilled professionals able to transform raw data into business insights, but also to hire talented managers to get the best out of these teams as they translate the needs of the executive suite into actionable results.

For those looking to break into a career in business analytics or move up the career ladder into one of these management roles, a master’s in business analytics is an attractive opportunity — but is it worth it? Do the benefits of an MS in business analytics justify the costs?

In this article, we’ll dive into what you can expect from a master’s in business analytics program, the reasons to pursue one, and, finally, the kinds of job opportunities this degree can open up and the salary ranges associated with these opportunities.

What’s a master’s in business analytics?

A master’s in business analytics is typically a one- to two-year program focused on equipping students with the hard skills and practical experience needed to succeed in any number of data-focused professions like data analyst, business analyst, business intelligence analyst, or data scientist.

Master’s in business analytics curriculum

The core components of the curriculum for a master’s in business analytics program overlap substantially with an equivalent program in data analytics. Students can expect to cover topics in the following areas:

Computer science: database querying with SQL, coding with programming languages like Python or R.
Statistics: core methods of data analytics, including regression, decision trees, optimization, and potentially machine learning techniques such as supervised learning, unsupervised learning, and/or reinforcement learning.
Data management: data mining for big data; data collection, processing, and storage.
Data visualization: dashboards and other forms of data visualization using software like Tableau or matplotlib.

Students can also expect to apply these core skills in business-centered coursework, with potential courses including “Financial Accounting,” “Decision Strategies,” “Optimization and its Business Applications,” “Advanced Regression,” etc.

Finally, master’s in business analytics programs provide students with opportunities to gain real-world experience through one or several of the following opportunities:

Internships, practica, or immersion programs
Business- or industry-specific concentrations
Capstone projects
Student interest groups
Case competitions

Master’s in business analytics modality

Though master’s programs have traditionally required students to attend in person, online and hybrid options are increasingly being offered. In fact, across all master’s programs in the US, the share of students attending in either a remote or hybrid capacity has grown from just 13% in 2000 to 52% in 2016. The possibilities for online learning uncovered during the COVID-19 pandemic has undoubtedly only increased this shift.

The opportunity to pursue a master’s in business analytics online doesn’t merely make studying at a world-class university accessible to aspiring analysts around the globe, it also offers significant potential cost savings: the flexibility of online learning allows many to continue working or study without relocating, avoiding lost income potential and relocation costs.

Master’s in business analytics cost

According to educationdata.org, the average total cost of a master’s of science degree in the US is $61,200, though the cost of an individual program can vary widely depending on whether it is offered by a private or a public university and, if the latter, whether an attendee can take advantage of in-state tuition discounts.

Why pursue a master’s in business analytics?

Given the cost, why do aspiring business analysts choose to pursue a master’s in business analytics? Ultimately, it comes down to salary. Whether you are looking to advance your career or transition into a new one, earning a master’s in business analytics offers the opportunity to earn more than you are currently earning. Over time, this higher salary can provide a significant return on your upfront investment in education.

Career advancement

For someone already working in business analytics, earning a master’s degree can have a significant career impact, boosting your earning potential and opening opportunities for leadership positions that bring with them more responsibility. Indeed, many companies require candidates for senior business analyst and other senior positions to hold a master’s degree in a relevant field.

Career transition

For those unhappy with their current earning, a business analytics can potentially offer a significant boost. Accordingly, those with bachelor’s degrees — whether in STEM, the social sciences, or even the humanities — often use a business analytics program as a way to slingshot themselves onto a new career path and the earning potential that comes with it.

But just how high are business analytics salaries? In the next section we’ll dive into what a master’s degree-holder can expect to make.

What’s a typical masters in business analytics salary?

Narrowing in on a master’s in business analytics salary can be difficult, not only because the degree is fairly new, but because there isn’t standardized reporting regarding the career outcomes of graduates. We will attempt to triangulate our way to a typical salary range using three data sources: the US Bureau of Labor Statistics’ career outlooks for relevant professions, Payscale’s employee-reported dataset for master’s in business analysis degrees, and Salary.com’s employer-reported dataset for “Business Analytics Manager with a Master’s Degree or MBA.”

US Bureau of Labor Statistics

While the US Bureau of Labor Statistics doesn’t collect specific data on those holding a master’s in business analytics or business analysis, they do collect data on certain related professions that can be instructive. According to their data:

Management analysts, who “advise managers on how to make organizations more profitable through reduced costs and increased revenues,” earned an average salary of $93,000 in 2021. Headcount in this profession is expected to grow by 11% over the next decade, over double the 5% growth expected for the US labor market as a whole.

Operations research analysts, who “use mathematics and logic to help organizations make informed decisions and solve problems,” earned an average salary of $82,360 in 2021. Headcount in this profession is expected to grow by 23% over the next decade.

Computer and information research analysts, who “design innovative uses for new and existing technology [and] study and solve complex problems in computing for business, science, medicine, and other fields,” earned an average salary of $131,490 in 2021. Headcount in this profession is expected to grow by 21% over the next decade.

Payscale

Based on salaries reported by employees and employers for jobs such as data analyst, business intelligence analyst, financial analyst, business analyst, senior business analyst, and data science, Payscale estimates the average holder of an MS in Business Analysis to earn $75,000. It should be noted, however, that they base this estimate on only 389 survey responses, of which over 75% are entry-level and early career professionals. It’s highly likely that those holding a master’s in business analytics earn substantially more than $75,000 in their mid- and late-careers.

Salary.com

Based wholly on employer-reported salaries, Salary.com sets a median range of $129,190 - $137,515 for those holding a Master’s degree or MBA. This estimate is significantly higher than Payscale’s, possibly due to the inclusion of MBAs in the dataset and possibly due to the specification of “business analytics manager” rather than “business analyst.” That said, this emphasis on later-career professionals provides a useful complement to the Payscale data.

The bottom line: is a master’s in business analytics worth it?

We’ve now explored what exactly you’ll learn in a business analytics master’s program, the reasons for pursuing a business analytics master’s, the cost associated with the program, and the range of salaries that graduates can expect to make. So, is it worth it?

Ultimately, the decision is yours: are you able to pay tuition for the program up front, or are you comfortable taking out loans and paying them back once you’re working? Do you feel confident in your ability to succeed in one of these programs and land a high-paying job? Are you willing to invest in your education now in order to see long-term return on this investment?

If you need more information as you consider these questions, you’ll find the following articles useful: