One year PGPM is more suited for aspirants with pre-MBA work experience. A one year program lets you get back to work within a year and in the second year, you work, earn and gain valuable post-MBA experience.
A simple ROI calculation is shown below,
One year course fee – 12 Lakhs/year
Two-year course fee – 7.5 Lakhs/year
Candidate earns – 3.5 Lakhs/Year before joining.
Candidate earns – 9 Lakhs/Year immediately after PGPMBL with 10% increase YOY
Total Gain/Loss for the first 3 years = (opportunity cost – Expense + Salary Income)
For PGPM
Total Gain/Loss would be (-3.5 – 11 +9 + 9.9) = 3.4 Lakhs
For PGDM
Total Gain/Loss would be (-4 -7.5 – 7.5 +9) = -10 Lakhs
We can clearly see why 1 year MBA has a better ROI than the 2 year MBA with the above example.
Further one is likely to find a more experienced and mature peer group in a one year program.
