Graduate Management Admission Test (GMAT): Definition, vs. GRE

What Is the Graduate Management Admission Test (GMAT)?

The graduate management admission test (GMAT) is a standardized test used to measure a test taker's aptitude in mathematics, verbal skills, and analytical writing. The GMAT is most commonly used as the primary exam reviewed by business schools to gain entrance into an MBA program. The exam is generally offered by computer only; in areas of the world where computer networks are limited, the exam may be given as a paper-based test.

Understanding the Graduate Management Admission Test (GMAT)

The GMAT exam consists of four sections: analytical writing assessment, verbal reasoning, integrated reasoning, and quantitative reasoning. The maximum score achievable for the GMAT is 800, and exam scores are generally valid for five years following the exam's completion. On average, the exam takes three and one-half hours to complete.

Every year, over 255,000 individuals take the GMAT. As of August 2023, it costs $275 to take the test at a test center and $300 to take it online in the U.S. Due to the widespread nature of the admissions test, GMATs are offered almost every day of the year and can be taken every 16 calendar days. However, the test can be taken no more than eight times total and no more than five times in a 12-month period. Most applicants take the exam once or twice before applying.

How the GMAT Is Applied

The Graduate Management Admission Council administers the exam. In addition to testing comprehension of writing and math, the GMAT is also used to assess an individual’s critical reasoning skills and logic as applicable to business and management in the real world.

Starting in 2012, the exam added a section called Integrated Reasoning, which assesses an individual’s evaluation skills for dealing with information gathered from multiple sources and in new formats. This section also intends to test students in the context of working with data and technology.

Approximately 3,391 graduate programs and institutions around the world use the GMAT to assess applicants to their programs. The Graduate Management Admission Council has recommended that the GMAT be used as one factor for determining whether a student is accepted into a program.

Moreover, the nature of the exams and what they test the applicants on make it inappropriate to treat both exams similarly. The Graduate Management Admission Council recommends not using a so-called cutoff score when reviewing applicants but instead looking at their applications holistically. If a cutoff score is implemented, the council suggests the institution take additional measures to show that the cutoff does not lead to discrimination based on age, sex, or ethnicity.

Requirements for the GMAT

The Graduate Management Admissions Council requires identification to take the test, which can include:

• International travel passport—a passport is always required when taking the exam at a location outside of your country. Expired passports are not acceptable.
• Green Cards (Permanent Resident Cards) for non-citizen residents
• Government-issued driver's license
• Government-issued national/state/province identity card
• Military ID card

Acceptable identification varies by country, so you should check the GMAC's website to learn what is acceptable in your country. In addition to having proper identification, you should be eligible to apply for a graduate program at the school you wish to attend.

GMAT vs. GRE

Compared to the GMAT's four, the GRE has three sections: an Analytical Writing Assessment, a Quantitative section, and a Verbal section. You're given three hours and 45 minutes to finish the test, the maximum score you can achieve is 170, and the average test score is 150.8.

It is not uncommon for graduate programs to use either the GMAT or the Graduate Record Examination (GRE) to assess an applicant. Due to the differences in how the two tests are scaled, GMAT and GRE scores cannot be directly compared. However, some schools accept either the GMAT or the GRE, depending on the program you're applying for. Many graduate programs use the GRE, while more business graduate programs use the GMAT.

The Bottom Line

The GMAT is a test designed to evaluate your ability to think critically and make decisions using math, analytical, and communication skills. It is accepted at most business schools and is one of the first steps to take if you're considering a graduate degree in business.