What is the GMAT exam, and how to get started?

The GMAT  is a standardized business school entrance exam accepted by more than 2,000 institutions worldwide. It is accepted by more business schools than the other commonly taken exam, the GRE, making it a primary choice for applicants. Around two-thirds of students at top US business schools take the GMAT over the GRE.

While the GRE is a generalist exam, the GMAT lets you demonstrate the high‑level skills you need to succeed at business school and in your corporate career afterward.

If you’re applying to business schools in India, the NMAT by GMAC is also widely accepted. The NMAT assesses the same skills required for business school but has a shorter duration and lower cost than the GMAT.

Why take the GMAT?

Most business schools—particularly MBA programs—require candidates to submit a GMAT or GRE score as part of the application. So, why opt for the GMAT?

First, the GMAT is designed to specifically test you on the skills you’ll need at business school and to succeed in the corporate world once you graduate. The GMAT includes a Data Insights section with questions on interpreting and analyzing data and applying insights to business situations—skills that are vital for a graduate management degree.

By comparison, the GRE is a broader entrance exam used for admission to a range of postgraduate degrees, not just business and management.

Second, the GMAT can be more manageable for applicants whose first language is not English, as the GRE’s Verbal Reasoning section also includes questions on academic English vocabulary.

Finally, the GMAT offers flexibility in where and how you can take the exam. The online version of the GMAT is identical in form and content to the in-person test and is available globally, except currently in mainland China, Cuba, Iran, North Korea, and Sudan.

If you’re taking the GMAT online, you can use an online whiteboard (included with the online exam) or a physical whiteboard to work through questions.

What are the GMAT sections?

The GMAT exam has three sections, and you can answer these in any order. The exam lasts 2 hours and 15 minutes, and includes an optional 10-minute break, which you can take after the first or second section.

Quantitative Reasoning

The Quantitative Reasoning section tests your problem-solving, logic, and analytical skills. Although the 21 questions will test elementary algebra and arithmetic, you cannot use a calculator during this section.

Verbal Reasoning

The GMAT Verbal Reasoning section tests your reading comprehension and critical reasoning skills. There are 23 questions, and you’ll read short passages and answer questions that test your understanding logical relationships. Unlike the GRE, you will not need to take an English vocabulary test.

Data Insights 

The Data Insights section is the most mathematical section, and you’re allowed to use a calculator for its 20 questions. You’ll be tested on your ability to read and interpret graphs and tables, solve complex problems, evaluate data, and synthesize information multiple sources.

What’s a good GMAT score?

In the previous version of the GMAT, the 10th Edition, scores ranged from 200 to 800. In the latest version, the 11th Edition of the GMAT (previously called the Focus Edition), scores range from 205 to 805.

If you’re taking the latest version of the GMAT, a score above 645-655 puts you into the 90th percentile, meaning the top 10% of score takers. Average GMAT scores achieved by students at prestigious business schools range from 655 to 695 in the US, and hover around 665 in classes at top institutions in Europe.

Consequently, aiming for a high GMAT score can improve your chances of being accepted into a competitive MBA program. However, a low GMAT score doesn’t necessarily mean you won’t be admitted.

Business schools evaluate all parts of your application when deciding whether to admit you, including your essays, academic history, and interview performance. Knowing whether you’ve achieved a good GMAT score depends on your background and the school you’re targeting.

There’s typically less reliance on GMAT scores in Master’s in Management applications, with some schools making the GMAT optional, or using their own entrance exams. However, in these cases, taking the GMAT remains a strong way to prepare for the rigor of a graduate management degree and to add another competitive edge to your application. 

Next steps: making a study plan and registering

So, now that you’ve decided to take the GMAT, what’s next?

The GMAT is an intensive exam, and if you’re applying to highly competitive MBA programs, you’ll want to be well prepared to perform at your best. Exactly how much preparation you’ll need will depend on personal factors, but two to three months of study is typically considered ideal.

What does a GMAT study plan look like? We recommend practicing with example questions for each of the three sections and spending time reviewing your weakest areas. A GMAT exam prep book will provide you with complete GMAT practice tests and tips for improving your score.

If you’re concerned about your performance on the GMAT, another option is GMAT prep courses. These are offered by third-party companies, and packages include practice exams and 1:1 tutoring to prepare you for the exam.

Regardless of which GMAT prep resources you decide to use, remember that every hour you spend studying for the GMAT is also valuable preparation for your eventual graduate management program.