MBA Waitlist Deposit Opportunity Cost Calculator
Before tying up a sizable MBA deposit, estimate both the cash at risk and the yield you give up while waiting. Enter the deposit size and waitlist months to see the interest you forgo, expected cash exposure after refund odds, and the total effective cost of keeping your spot alive.
Confirm refund policies with each admissions office before making enrollment decisions.
Examples
- $3,000 deposit, 6 months held, 4.5% alternative return, 25% refund odds ⇒ Interest you forgo: $67.50 • Expected cash truly at risk: $2,250.00 • Total effective cost of staying on waitlist: $2,317.50 • Refund probability applied: 25.00% • Annual return assumption: 4.50%
- $5,000 deposit, 9 months held, default return, no refund ⇒ Interest you forgo: $150.00 • Expected cash truly at risk: $5,000.00 • Total effective cost of staying on waitlist: $5,150.00 • Refund probability applied: 0.00% • Annual return assumption: 4.00%
FAQ
How do I model multiple deposits?
Run the calculator for each school and add the total effective costs together to compare with the value of staying on several waitlists.
What if I can redeposit at another program?
Treat the second deposit as part of the opportunity cost of switching—add it to the cash at risk when comparing scenarios.
Can I use investment returns instead of savings rates?
You can, but riskier return assumptions make the opportunity cost more speculative. Use a yield you could reasonably earn without jeopardizing liquidity.
Additional Information
- Many programs keep deposits if you withdraw after a certain date—treat the expected refund probability realistically.
- Using a conservative yield assumption prevents overstating opportunity cost compared with safe cash alternatives.
- Layer in travel or housing deposits separately for a complete cost-to-attend view while you await a final decision.