What Is the GMAT?

The Graduate Management Admission Test (GMAT) is one of several standardised exams you might choose to take when applying to a Master of Business Administration (MBA) postgraduate programme. Over 2,000 universities across 110 countries accept the exam, including nearly 200 institutions in India [1]. The exam, administered by the Graduate Management Admission Council (GMAC), measures critical thinking, analysis, and data literacy skills that are commonly necessary for success in graduate business programmes.

Admissions committees typically use entrance exam scores to gauge your preparedness for graduate-level coursework. Although it's just one piece of the MBA admission process (and it's not always required), with a good entrance exam score, you may stand out academically and receive preference over other candidates in the selection process. When deciding the right entrance exam for you, carefully review the entrance requirements of each programme you wish to apply for. For example, the GMAT is widely required for top international business schools, so if you are looking abroad, it may be in your best interest to complete this exam. If you’re looking at business schools in India, many universities accept the GMAT, but some universities may prefer or require other entrance examinations for local applicants.

Learn what you can expect from the GMAT, including exam sections and scoring guidelines. Then, explore tips to help you succeed on this entrance exam. 

GMAT sections

In November 2023, GMAC redesigned the GMAT to reflect modern business programmes and originally called it the GMAT Focus Edition. The new exam, now referred to as simply GMAT again, has the following breakdown of sections [2]:

How does the new GMAT (Focus Edition) differ from the original GMAT?

The original GMAT had four sections: analytical writing, integrated reasoning, quantitative reasoning, and verbal reasoning. The exam took three hours and seven minutes, with two optional eight-minute breaks.

The 10th edition of the GMAT exam, the scores from which are accepted until January 2029, has a breakdown of sections as follows [3]:

Quantitative reasoning

In this section, you have 45 minutes to complete 21 questions that measure your ability to solve problems [2]. You can expect this section to test your knowledge of fractions, percentages, ratios, algebra, and statistics, as well as your analytical skills.

Verbal reasoning

In this section, you will have 45 minutes to answer 23 questions that measure critical thinking and reasoning, reading comprehension, and inference abilities [2]. In the reading comprehension section, the test-makers are assessing your ability to comprehend written words and statements, including the ability to draw logical conclusions and inferences from the material. You will need to be able to identify the main and supporting ideas in the passage, as well as the structure and style of the writing. 

In the critical reasoning questions, you’ll showcase your ability to make and evaluate arguments based on short reading passages (usually under 100 words) [2]. Using the text, you’ll answer questions pertaining to ways to strengthen or weaken the argument and discuss why the argument is or isn’t flawed. 

Data insights

The data insights section is 45 minutes long with 20 questions testing your quantitative skills, verbal skills, data analysis knowledge, and logical reasoning [2]. The primary target of this section is to evaluate your data literacy. In this section, you can expect questions with several types of information, including graphic, numeric, and verbal. You’ll then assess how the information relates and what types of decisions you can make from the findings. Question areas you might see include:

• Data sufficiency: Recognise relevant information and when sufficient data has been collected.

• Multi-source reasoning: Examine data from several sources, find discrepancies, and draw inferences.

• Table analysis: Assess, manage, and analyse tabular data.

• Graphics interpretation: Interpret visual information from several types of graphics.

• Two-part analysis: Solve complex problems through multi-stage reasoning and analysis processes.

How GMAT scoring works

The GMAT is a computer-adaptive test, meaning the difficulty level of the questions adjusts to your performance as you answer each question. The questions are given based on your estimated score to ensure informative questions are given to each test taker. Correct answers will typically yield more difficult questions as your estimated score gets higher, while incorrect answers will often generate easier questions as your estimated score gets lower. Ultimately, your score will reflect the difficulty level of your questions.

You will receive a score for each of the three GMAT sections you complete. You will also receive a Total GMAT Score, ranging between 205 and 805, that is composed of your scores from all three sections [4]. Each section carries equal weight and has a range from 60 to 90 points [4].

Right after you complete the test, you’ll receive an unofficial score. Your official scores should be ready within one to three calendar days (sometimes it may take up to 20 days) of the test date. Once the official score report appears in your mba.com account, you can send the score to five schools for free within 48 hours [5]. GMAT scores are valid for five years and are available for reporting for up to 10 years [5].

What happens if you don’t like your score?

If your score is not what you hoped for, don’t fret. Once your score is available, you have control over where and when to send your score report. You can send your score to five schools for free within 48 hours of it showing up online. You also have five GMAT exam attempts within a 12-month period, so you have several tries to boost your score and hit your goals. 

Where to take the GMAT

With the GMAT, you have the option of scheduling your test at an onsite facility or taking the exam online from home, as long as you have the appropriate software. Deciding where to take your GMAT depends upon your preferences. If you like the imposed quiet and structure of a testing facility, that might be the best option for you. However, if you prefer taking the test from the comfort of your home, that may work better. 

For an in-person location, you’ll need to book your time slot in advance, so make sure you plan ahead to get your preferred location and time.

GMAT cost 

The fee to take the GMAT exam at a testing centre is USD 275 and includes the option to send your scores to up to five schools within 48 hours [6]. For additional score reports, you’ll need to pay an additional USD 35 [6]. If you take the test online, the fee is USD 300 and again includes the option to send your scores to up to five schools within 48 hours [6]. 

In both instances, if you need to change the location or reschedule your test, you may need to pay additional fees, ranging from USD 55 to USD 180, depending on how long before your exam you rescheduled and the exam type [6].

How to prepare for the GMAT

Preparation is essential to your success on the GMAT. Luckily, you can choose between several ways to prepare for the exam. When preparing, choose material geared for the GMAT Focus exam, rather than previous versions.

• Give yourself enough time. Begin studying for the GMAT several months before you begin applying to MBA programmes.

• Use GMAT study resources. A number of excellent resources are available when it comes to studying for the GMAT. Whether you borrow books from the library, download study guides, or try online practice exams, you have several options.

• Focus on each section. Although it may be tempting to jump around and learn a little about each section, it’s beneficial to plan your studying in a more focused manner. Tackle one section at a time. 

• Take an online GMAT prep course. Several online courses can help you prepare for the GMAT.

Explore further with Coursera

The GMAT is a valuable exam for students interested in applying for MBA programmes globally. This exam allows you to showcase your analytical and critical thinking abilities, along with your data literacy, to stand out among business school candidates.

Earn your MBA online from the University of Illinois Gies College of Business. The iMBA programme is competitively ranked and features more flexibility to help you learn on your own time. In the meantime, take an open course from the University of Illinois or other business schools to see if an MBA is right for you.