The Graduate Management Admission Test (GMAT) is a graduate admissions entrance exam designed specifically for students who want to earn a postgraduate degree in business. A recent score is often required when submitting an application for an MBA, Master of Accountancy, or Master of Finance.
What Is the GMAT?
This computer adaptive test (CAT) is a standardized exam required for applying to many types of business-related programs at US universities and colleges. If you want to get your MBA in the US, or pursue any other type of graduate business program, this exam is often listed as a requirement to apply; it evaluates your analytical and quantitative skills, as well as your skills with reading, writing, and speaking in English.
Business school admissions staff primarily use the exam to measure applicants’ skills with business-related topics and to determine if they have the required skills and knowledge to succeed at their school’s graduate business program.
The exam evaluates key modern business skills such as organizing data, analyzing information from different sources, making judgments based on data, and more. Your score helps business schools measure your proficiency in these skills.
Programs from different disciplines, such as law and medicine, will have their own unique entrance exams. You can learn more about these in our guide to standardized tests.
Now that we know what is the GMAT, let us look at the different sections of the test.
What Are the GMAT Sections?
The exam has three sections, and the test sections include:
Quantitative Reasoning
Verbal Reasoning
Data Insights
You can choose the order in which you complete the test sections.
These sections are designed to measure the key areas of critical thinking and analysis, similar to what will be present in business programs such as an MBA. The sections in this exam also test areas such as basic arithmetic, data analysis, and your proficiency with English.
As many graduate programs require you to assess problems, formulate your own solutions, and draw conclusions from data, the test places a strong focus on evaluating your analytical and problem-solving skills.
Quantitative Reasoning
The Quantitative Reasoning section of the GMAT tests your ability to think logically about quantitative concepts by assessing your understanding of algebra and arithmetic.
This section will have 21 problem solving questions which will require knowledge of arithmetic and elementary algebra. Success in this section depends more on your logical and analytical reasoning than on advanced mathematical knowledge.
You have 45 minutes to complete this section, and scores will range from 60 to 90 in one-point increments.
Verbal Reasoning
The Verbal Reasoning section assesses your proficiency in reading comprehension and critical reasoning. It consists of 23 five-option multiple-choice questions that must be completed in 45 minutes.
Reading Comprehension questions measure your ability to interpret written statements, understand logical relationships between key ideas, draw inferences, and follow the development of quantitative concepts. These questions evaluate skills such as identifying main ideas, supporting details, inferences, applications, logical structure, and writing style.
Critical Reasoning questions measure your ability to construct arguments, evaluate arguments, and formulate or evaluate a plan of action. Each question is based on a short reading passage, usually fewer than 100 words, and requires you to identify the best response to the question presented.
The score in this section of the GMAT exam ranges from 60 to 90 in one-point increments.
Data Insights
The Data Insights section measures your ability to analyze and interpret data and apply it to real-world business scenarios. This section of the GMAT also measures digital and data literacy, skills that are increasingly valuable in today’s business environment.
This section consists of 20 questions designed to evaluate how effectively you can interpret and connect information from multiple sources (including graphic, numerical, and verbal data) to make informed decisions. Some questions may require mathematical reasoning, data analysis, verbal reasoning, or a combination of these skills. An on-screen calculator is available for use in this section.
Question types include data sufficiency, multi-source reasoning, table analysis, graphics interpretation, and two-part analysis.
You have 45 minutes to complete this section, and scores will range from 60 to 90 in one-point increments.
How Is the GMAT Scored?
The total score is given in increments of 10 points with a range from 205 to 805, while each section will be scored from 60 to 90 in one-point increments.
As the exam is a common admissions test (CAT) test, the scoring method evaluates your score based on how you perform during the exam. Your exam begins with a medium difficulty question, and the computer will increase the difficulty of questions presented to you with each question you answer correctly. If you answer questions incorrectly, you may be given slightly less difficult questions to compensate.
Your final score is created using a combination of your correct answers and wrong answers, with the level of difficulty of the questions you answered.
When to Take the GMAT
You can register up to six months in advance, and the Graduate Management Admission Council recommends registering two to three months before your preferred testing date. This gives you time to prepare for the exam (and potentially achieve a higher score) compared to registering with shorter notice.
When Is the GMAT Registration?
Test registration does not have any official fixed dates: You can register for your exam based on your schedule (and when you feel you are ready to take it).
How Much Does the GMAT Exam Cost?
The GMAT exam cost varies based on the country in which you register.
If you choose to take the exam at a test center, the fee ranges from $250 to $285, and if you choose to take the exam online, the fee ranges from $275 to $310.
For example, in India, the GMAT fee is $275 for test center appointments and $300 if you choose to take it online. To find out exactly how much you may need to pay, visit the GMAT site here.
GMAT Exam Preparation Tips
Thousands of students around the world take the GMAT exam every year, which means there are many resources available to prepare. The official testing website offers a variety of prep material, including practice tests, interactive tutorials, videos, guides, and more. Some reputable third parties, such as The Princeton Review and Kaplan, also prepare GMAT exam prep guides which you can refer to in addition to your other material.
Additionally, consider the following five tips for your test preparation:
Begin your preparations early. Carefully evaluate how long it may take you to go through all your prep material and start studying as early as you can. This gives you ample time to prepare, without the need to rush.
Avoid studying multiple sections at once. Prepare for one section of the test and move on to the next after you are confident you have mastered the material.
Manage your time carefully and practice answering each section on time. This helps you set your pace while answering questions so that you do not run out of time during the actual exam.
Revise your knowledge of mathematics as the exam tests areas such as algebra, fractions, and more.
Practice each type of question multiple times to find the areas you may need to spend more time on. By getting familiar with these sections early on, you can see exactly where you need focus – and hopefully make improvements to achieve a higher score.
At first, it may seem like there is a lot of material for you to review, but you can prepare by creating a personalized study plan. A Shorelight advisor is always ready to help: They can work with you to identify required scores for admission to US graduate programs, give you study tips for exams, and provide other international student services such as assistance with your visa, transitioning to campus, and more.
Study Plan
A study plan is a guide that organizes all the material you want to review over a specific period of time leading up to the date of your exam. Your study plan helps you go over all your material and cover the areas you need more practice on, while also keeping you on track.
Consider the following when creating your study plan so you can study effectively for your exam:
Dedicate certain days to specific subjects — This helps you focus on just one area of the test per day, so you can improve on the subjects you are less confident about while still covering other areas.
Set a time for practice tests — By organizing your schedule to take practice tests after your review sessions, the material will be fresh in your mind and help you measure your preparedness based on your prep work. It is important to approach each practice test as though it was the actual test to make sure you can pace out your answers for each question and finish on time.
Use your favorite study techniques — Every student has their own way of studying, and you should prioritize what works best for you. Whether you need to study alone in silence, have music on, or study with friends, you will learn better if you study in an environment that feels comfortable to you.
GMAT FAQ
When Should I Schedule the Exam?
The Graduate Management Admission Council (GMAC) recommends scheduling your exam well in advance of your application deadline. Ideally, you should plan to take the GMAT three to four weeks before your intended submission date.
This timeline allows you sufficient time to prepare thoroughly and, if necessary, retake the exam before your application deadline.
How Hard Is the GMAT Exam?
The GMAT exam is regarded as more challenging than undergraduate standardized tests such as the Scholastic Aptitude Test (SAT) and American College Testing (ACT), and less challenging than the Law School Admission Test (LSAT) or Medical College Admission Test (MCAT), which are required for admission to the law school and medical school, respectively.
When compared with the Graduate Record Examinations (GRE), opinions may differ. Students who are stronger in mathematics and less confident in verbal reasoning often find the GMAT more approachable. In contrast, students who excel in verbal reasoning but find quantitative concepts more difficult may find the GRE better suited to their strengths.
What Is a Good GMAT Score?
To score higher than half of all test takers, you would need a GMAT score of approximately 555 or above. Achieving a score of 605 or higher places you among the top 25% of test takers.
For a highly competitive score, particularly for admission to top business schools, you should aim for a score of 655 or above.
How Long Is the GMAT Exam?
The test takes approximately two hours and 15 minutes, with one optional 10-minute break, which can be taken after completing the first or second section of the exam.
Can I Retake the Test?
Yes, you can retake the GMAT exam; however, you must wait at least 16 days between attempts. The test can only be taken up to five times in a single year, even if your scores are canceled. Recorded scores are valid for five years, and all non-canceled scores from the past five years will be reported.
If you face a technical issue while taking the exam, you may be allowed to retake the exam at no additional cost. In such events that require you to retake the test, it will not count toward your retake limit if the issue can be verified.
Getting started with registering and studying for the test can be challenging to do alone, but a Shorelight advisor can give you the support you need. They will advise you every step of the way and help you confidently prepare for your exam so you can work toward studying at your ideal university.
Study hard and best of luck!
Speak with a Shorelight advisor today to start planning your next steps toward studying in the US >
