What is the GMAT exam?

TL;DR

• The GMAT exam is the most widely taken entrance exam for business schools. Admissions teams use the exam to assess the quality of your application and compare you with other applicants, but the score can also predict your performance in a course and even win you a scholarship
• The exam has three sections: Quantitative Reasoning, Verbal Reasoning, and Data Insights. It tests skills in math, problem-solving, reading comprehension, critical reasoning, and data interpretation
• The GMAT costs US$275 if taken in person and US$300 online. You can retake it up to five times in a rolling 12-month period. Your score is valid for five years

If you're hoping to go to business school, you've likely heard of the Graduate Management Admission Test (GMAT).

The GMAT exam is the most widely accepted business school admissions test. It’s used by admissions teams to assess the quality of your application, judge how prepared you are for business school, and even award scholarships.

It also helps you signal your commitment to the program you’re applying to by demonstrating your problem-solving abilities and critical reasoning skills.

Here’s everything you should know:

Why does the GMAT matter?

Business schools value the GMAT exam because it’s an indicator of a candidate's candidate’s readiness for a program.

As a standardized test, the GMAT exam also helps business schools compare candidates from different backgrounds and regions, which is why most schools favor the GMAT exam over other tests. 

Most schools publish the average GMAT score of their current MBA class. That can give you an idea of the likelihood of your application succeeding.

In a Kaplan/Manhattan Prep survey, 88 percent of business schools said that submitting a competitive admissions exam score will help your application. In the survey, business school admissions officers explained why they favor the GMAT:

• “A good GMAT score shows us that prospective students are willing to invest time to prepare for the MBA and that they have the baseline knowledge to begin.”
• “Our scholarships are based on GPA, GMAT score, and interview experience, so strong GMAT scores have a very important impact on admissions and scholarship offers.”

Simply put, a strong GMAT score will boost your chances of being accepted into business school.

What is the GMAT exam like?

The GMAT exam is based on the high school-level mathematical concepts and English language skills. For example, you may be required to use arithmetic or elementary algebra as part of the test. The GMAT exam does not evaluate your specific job skills, motivation or interpersonal abilities. Also, it is not designed to test your command of the English language.

While you may already have what it takes to achieve a good GMAT result preparation is crucial to getting the highest score you can.

The GMAT is not impossibly challenging. However, it may be difficult to get a good, balanced score that truly represents your abilities if you don’t know what to expect. You can get a good sense of that by reviewing practice questions and preparing for the test conditions.

The English and mathematics involved are not especially difficult, but the GMAT exam also assesses your ability to reason and make complex judgments using critical thinking, analysis of information, and problem solving under timed conditions

The GMAT exam has a maximum score of 805 and a minimum of 205. It consists of three sections that you can take in any order, and it lasts up to two hours and 15 minutes.

What is the GMAT exam structure?

1. Quantitative Reasoning

The GMAT assesses mathematical ability and numerical literacy. It tests your ability to reason and solve problems. It measures the skills needed in quantitative-based subjects such as finance, accounting and managerial statistics.

This section features problem solving questions based on common knowledge of concepts related to arithmetic and algebra.

2. Verbal Reasoning

The GMAT Verbal Reasoning section evaluates reading comprehension and critical reasoning. This will gauge your ability to comprehend and draw inferences from written material and to evaluate arguments.

This section features a mixture of two types of multiple-choice questions:

• Reading comprehension passages of up to 350 words followed by questions testing your ability to interpret the text, draw inferences from it, and identify logical relationships between different elements
• Critical reasoning, which measures your ability to draw conclusions from short arguments 

3. Data Insights

This section tests your ability to read and interpret data in multiple formats, including table analysis and graphic interpretation.

This part of the GMAT exam is designed to mimic today’s business world, in which managers must synthesize data from multiple sources to identify patterns, make decisions and solve business problems.

There are 20 multiple-response questions in the Data Insights section using five question formats:

• Multi-source reasoning using data from a variety of sources. You answer multiple-choice or yes/no and true/false questions
• Table analysis using a sortable table containing numeric data. You must determine if statements are true or false
• Graphic interpretation using a chart or graph. You find or extrapolate a value to complete fill-in-the-blank statements from a drop-down list
• Two-part analysis using quantitative and/or verbal information. You must weigh trade-offs and make decisions involving more than one variable. Possible answers are presented in a table, and you should choose the correct options
• Data sufficiency asks you to analyze a quantitative problem, recognize which data are relevant, and determine at what point there are enough data to solve the problem
  
   

What is computer adaptive testing

The GMAT exam is more than just a computerized version of a written test—it is computer adaptive. This means that it automatically adapts the questions it presents to you based on a real-time assessment of how you performed on previous exam questions.

The exam starts with question of average-difficulty, Depending on your success in answering, subsequent questions will vary in difficulty.

In the computer-adaptive format, if you answer a question correctly, a more challenging question appears next; if your answer is wrong, the next question is an easier.

Why should I take the GMAT exam if it's not compulsory?

Though the GMAT exam isn’t compulsory at every business school, we still highly recommend that you take the test.

That’s first because a strong GMAT score will only help your application. If you don’t take the GMAT exam, other candidates who have achieved a strong score may win admission or scholarships ahead of you.

Taking the exam also sends a strong signal to the admissions team. It indicates that you’re committed to graduate management education and prepared for the rigors of the course because it tests many things you’re likely to encounter in your MBA program.

Even when the GMAT is not a compulsory part of the application process, admissions managers might ask you to supply a score later in the process if your application is not as competitive as others in their candidate pool.

Finally, taking the GMAT is a great way to motivate yourself. It is normally the starting point of your business school journey; committing to it means you’re committing to your dream of going to business school.

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How much does the GMAT exam cost?

The GMAT exam at a test center generally costs $275, although prices vary depending on test center location.

How to prepare for the GMAT?

According to the Graduate Management Admission Council (GMAC), the owner and administrator of the GMAT exam, candidates can achieve a competitive score with just six weeks of preparation and study.

Your goal is to reach a point where you are quickly and confidently able to focus on answering each question, rather than spending time decoding what is being asked. You also want to become sure in your approach because second-guessing yourself will cost you valuable time on exam day.

A common approach is to focus your preparation on your problem areas. But don't neglect your stronger areas—you don’t want to lose easy marks by becoming complacent and making avoidable errors. Take full, scored practice exams regularly to benchmark your process and identify areas of strength and weakness. In practice exams, try to replicate actual test conditions—put away your notes, set a timer, and don’t use a calculator

There are many helpful study tools available to help in support your preparations. The FREE GMAT™ Official Starter Kit is a sampler of 90 past exam questions and  two, full-length GMAT™ practice exams in the same format as the real test.

GMAC also offers the GMAT Official Guide, the only study guide that features actual GMAT™ questions from past exams and is prepared by the makers of the exam.

What is a ‘good’ GMAT score?

Your score out of 805 is based on your performance in all three sections of the exam. When you receive your score out of 805, you will also receive a percentile, which indicates how you compare with other test takers.

The definition of a good GMAT score varies from business school to business school and candidate to candidate. Ultimately, a good GMAT score is one that gets you into your target program.

To work out what score you should aim for, look at the average GMAT score and GMAT score range of your target program. The average GMAT score of the world’s top MBAs can exceed 670, but candidates have also won admission to the likes of Kellogg School of Management with a score of 515.

You typically want to aim for the class average score. Of course, you ccould be accepted with a lower score if other aspects of your application – such as your essays, work experience, and interview performance – are strong. The GMAT score is important, but it’s not the sole determiner of whether or not you’re admitted.

What GMAT score do business schools want?

Most programs don’t explicitly state a minimum GMAT score requirement. Instead, schools often publish the range of GMAT scores achieved by their achieved by their most recent MBA class. This can provide a useful benchmark; however, schools generally want candidates with a well-balanced set of scores across all sections.

Don’t rule out programs even if you fall short of your target GMAT score, especially if it is close to the published range. Your GMAT score will be one part of your application, and you may have considerable strengths in other areas. Contact the admissions team for your chosen program to seek their guidance, and be prepared to retake the exam.

How is the GMAT different from the GRE?

The critical difference between the GMAT and the GRE is that the GMAT exam was created specifically for business schools, while the GRE is for a broader scope of graduate degrees. More than 7,700 business school programs worldwide accept the GMAT exam, and it is taken by the majority of business school applicants.

When should I take the GMAT exam? 

As early as possible, learn the admissions deadlines for your target programs. Work back from there, accounting for how much time you need to prepare. We recommend preparing for the GMAT exam at least three months before your test, allowing for at least six weeks of serious study and preparation.

Your GMAT score is valid for five years, so it’s unlikely that you’ll need to retake the test if you achieve the score you want. If you are currently studying, preparing for the GMAT while you are still in an academic mindset could make your life much easier.

Register for the GMAT exam

You can take the GMAT exam in major cities and at almost any time of the year. The test is offered worldwide at Pearson VUE test centers approved by the Graduate Management Admission Council and also online.

You can register for the GMAT exam on mba.com.

Ultimately, even for programs that don’t require the GMAT exam, taking it will put a candidate at an advantage, helping to ease providing access to top business schools globally.

"The GMAT score is important for assessing candidate’s aptitude for being able to have a successful MBA experience,” explains Nora Colton, director of the University College London Global Business School for Health.

"The exam is designed to demonstrate essential critical thinking and reasoning skills that will be required in an MBA program and beyond.”

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