What is the GMAT? All You Need to Know (2025)

GMAT stands for the Graduate Management Admission Test, a standardized exam used by business schools around the world to evaluate applicants for MBA and other graduate business programs. In fact, more than 7,000 programs at 2,400+ schools accept the GMAT, making it one of the most widely recognized tests in graduate admissions.

Primarily, the GMAT is used by:

• MBA programs (both in the U.S. and internationally)
• Master’s in Management (MiM) and other specialized business degrees
• Some dual-degree programs (like JD/MBA or MD/MBA)

How Do Business Schools Use the GMAT?

Since the GMAT is standardized, schools use it to compare applicants from very different backgrounds on a level playing field. It also gives them a measure of your academic readiness: the same skills tested by the GMAT—such as your ability to reason through data and analyze arguments—are the same skills you’ll use within the program.

It’s not the only thing schools consider—your application will also include your GPA, work experience, essays, and more—but it’s one of the few common benchmarks across applicants.

Additionally, some business schools factor test scores into merit scholarships that they provide.

So, whether you’re planning on getting an MBA, a specialized master’s, or just exploring your options, we’ll guide you through exactly what the GMAT is. Read on to learn how the GMAT works, how to prepare, and how to decide if it’s the right test for you.

What is on the GMAT?

The GMAT consists of many different question types, all of which test how well you reason and analyze. The exam is split into three different sections: Quantitative Reasoning (aka “Math”), Verbal Reasoning (“Verbal”), and Data Insights (“DI”).

Here’s a quick look at what each of those sections entails:

For a deeper analysis of the full form of the GMAT—including its unique features—check out our breakdown of the test here.

The Data Insights Section

On this section, you’ll have 45 minutes to answer 20 questions. Keep in mind that these are often complex, multi-part questions. A big part of mastering DI depends on your ability to master the timing.

This is also the most unique section of the GMAT, consisting of 5 different question types:

• Data Sufficiency – Do you have enough information to solve the problem?
• Graphics Interpretation – Can you interpret various visualizations of data?
• Table Analysis – How well can you extract information from a table?
• Two-Part Analysis – Can be either a “math” (ex: what is the relationship between two variables?) question or a “verbal” question (ex: what is the relationship between two blanks in a passage?)
• Multi-Source Reasoning – How well can you integrate information from a passage as well as other sources of data?

See our Guide to Data Insights for more details.

The Quantitative Reasoning Section

For Math, you’ll answer 21 questions in 45 minutes. There’s nothing too special here as far as the format—every question is multiple choice—but some of these questions can be quite tricky. The difficulty doesn’t stem from the topics tested (no calculus, no trigonometry, and even no geometry) but rather from piling up concepts on top of each other to create multi-level problems.

So, you’ll want to review the following areas before test day:

• Arithmetic
• Number properties
• Pre-algebra
• Algebra
• Word problems

For a closer look at the Quant section, check out our guide on how to study for GMAT math.

The Verbal Reasoning Section

The Verbal Section pits you against 23 multiple-choice questions in 45 minutes. You’ll encounter two types of questions—Reading Comprehension (RC) and Critical Reasoning (CR)—and roughly the same number of each.

• Reading Comprehension questions present you with a short (200-300 words) or long (300-400 words) passage, along with a set of multiple-choice questions.
• Critical Reasoning questions set forth an argument that you then analyze. There are many different flavors of CR questions, including “Strengthening”, “Weakening”, and “Assumption”.

For more on the Verbal section as a whole, take a look at our article on GMAT Verbal.

How Adaptive Testing Works

One thing that makes the GMAT different from most standardized tests? Within a section, it adapts to you as you take it.

The GMAT is a Computer Adaptive Test, which means that the test adjusts in real time based on how you’re doing:

• Answer a question correctly? The next one may be a bit harder.
• Answer incorrectly? The next one might be a bit easier.

This allows the GMAT to zero in on your skill level more efficiently than a traditional test, where every test-taker sees the same set of questions.

This question-by-question adaptivity is something to be aware of in general, but don’t focus on it during the exam. It’s far more important to worry about the question you’re on versus an algorithm behind the scenes. Learn more about this in our free lesson.

A Note on the Separate Business Writing Assessment

First of all, the GMAT itself contains no essay section. Thus, you won’t have to do any writing during the exam.

However, it’s important to know that some select business schools may require you to later (at the interview stage) take the separate Business Writing Assessment. Currently, only Harvard Business School requires this if you submit a GMAT score, and MIT Sloan may request this.

What Score Do I Need?

If you’re hoping for a top business school, unsurprisingly you’ll want to aim for a top score (though you most certainly do not need a perfect 805 on the test!). The whole idea is to make your application as competitive as possible, so ending up in the higher percentiles is certainly a bonus.

If you’re not aiming for the best of the best, you’ll still want a score that’s competitive. As a general rule of thumb:

• 685+ is an excellent score (think M7 programs, like Harvard, Wharton, Stanford)
• 645+ is a very good score (think top 25 MBA programs)
• 615+ is a good score (that will be competitive in many top 50 MBA programs)

With that said, a good GMAT score is ultimately the score that gets you admitted. Sometimes that’s a top score, sometimes that’s an average score, and sometimes that’s even a below-average score.

Similar to what we saw in the Do I Have to Take the GMAT? section, it really depends on the rest of your application as well as the specific programs that you’re applying to. Schools generally fall into one of these categories:

No Minimum Required

Many business schools—such as Wharton and Harvard Business School—openly state on their websites that “There is no minimum GMAT or GRE score requirement to apply.”

In other words, don’t let a low test score stop you from pursuing a specific school. Top business schools frequently stressed to us that the admissions process is a holistic one and how test scores are but one factor.

Recommended Minimum

Other MBA programs—such as Syracuse Whitman—will specify a recommended threshold to aim for. However, not meeting that criteria won’t cause them to immediately disregard your application. They’ll look elsewhere in your application to assess your fit with their program.

Provide Average Scores and/or Middle 80% Ranges

Most commonly, schools won’t discuss a minimum in one way or another. Instead, their class profile pages—such as this one from Michigan Ross—will list their recent students’ average test scores or even the middle 80% range. Occasionally you’ll encounter a school—such as Harvard—that even provides the entire range.

Ultimately, these average scores and ranges serve as a reference point that provides you with some context. Getting a top score is, of course, excellent. But a wide range of students with a variety of scores—including those with “bad” scores—get admitted every year.

Michigan Ross: “(Your test score) is just one data point in your whole application, so even if you’re not hitting what you think is the class profile average on our website, number one, that’s an average, so do not let that hinder you because many fall well below and well above that average.” – Michelle Pava, Associate Director of Admissions — GradTalk Episode #7

How Hard is the GMAT?

The GMAT is a challenging exam—but how hard it feels depends on your personal strengths. In general, its content is tougher than the SAT or ACT, but not as demanding as the LSAT or MCAT. And if you’re strong in quantitative reasoning, you might find it easier than the GRE (though, if verbal is your strength, the opposite may be true).

Beyond the content of the test, also consider:

• What did you study in undergrad, and how long ago did you attend?
• How well do you work quickly and under pressure?
• How much prep have you done for the GMAT so far?

For a much closer look at the challenges of the GMAT, see our article on how hard the GMAT is.

How Do I Best Prep for the Test?

At a high level, you’ll want to:

1. Take a practice test to understand your baseline score and strengths and weaknesses
2. Follow a study schedule to get the most out of your study time
3. Keep an error log to see what went wrong and what to do differently next time
4. Focus on timing strategy to pace yourself effectively through each section
5. Learn from your mistakes to make the most progress

For more information and advice, take a look at our guide on how to prepare for the GMAT.

And if you’re deciding between prep options, check out our comparison of the Best GMAT Prep Courses.

Do I Have to Take the GMAT?

GMAT and Test Optionality

The short answer? It depends. The long answer is that you absolutely must check with the programs that you’re applying to since it varies from school to school.

There are several different categories that schools fall into:

Test Required

Some schools—such as Stanford GSB—do require you to submit a GMAT or GRE score.

Test Optional

Other schools—such as UCLA Anderson—leave the choice up to you. If you submit a test score, they’ll look at it; otherwise, they won’t ask for one.

Keep in mind, though, that even if a school is test optional, submitting a test score could be a very important part of your application:

UCLA Anderson: “What if I apply without a standardized test score? Will that impact my candidacy negatively? No, that’s not the case. You definitely will need to think about how can you prove your quantitative skill sets to us… We want to make sure people succeed—one of those areas is in the classroom. We’re very Quant heavy, so… whether it be through your transcript or additional courses or in your place of work, you showcasing those skill sets outside of submitting a standardized test score are going to be very important.” – Alex Lawrence, Assistant Dean and Director of MBA Admissions — GradTalk Episode #5

Test Free

Some schools don’t require any test scores whatsoever. This tends to be the case more with online MBA programs as opposed to full-time MBA programs. Case in point, consider Arizona State University: the W. P. Carey Online MBA program does not require any test score but the full-time program does.

Test Waivers Available

You may be exempt from taking the GMAT or the GRE at certain schools—provided you meet certain criteria. As one example, Chicago Booth will only waive their test score requirement if you previously graduated from the University of Chicago.

Special Requirements

Lastly, some schools can have very specific requirements when it comes to standardized tests. If you’re applying to business schools in India, they often only accept a test taken at a test center (and not one taken online). Such is the case with ISB (Indian School of Business).

In short, do be sure to research each program you’re applying to!

The GRE as an Alternative to the GMAT

Nowadays, it’s almost unheard of for a business program to have a preference for the GMAT over the GRE. So, more than likely, you can take the GRE in place of the GMAT if you so choose. (But the same advice from above still applies: always check with your specific programs!)

Should you take the GRE? It can be a great option, especially if:

• You’re applying to multiple types of grad programs, not just business school
• You have strong vocabulary and/or writing skills

There’s more to it than that, so take a look at our full analysis of taking the GMAT vs the GRE. But in the end, it really comes down to which test you can score the highest on. And with that in mind, one of the best ways to answer that question is to take a practice test in each:

• Magoosh’s Free GRE Practice Test
• Magoosh’s Free GMAT Practice Test

Where, When, and How Do I Take the GMAT?

To take the exam, you’ll first need to register on the official GMAC website.

You’ll also need to decide if you want to take the exam at a test center or online. Though the online GMAT is conveniently offered in many countries, that’s not the case in every country—most notably, mainland China. Additionally, many Indian business schools and Indian Institutes of Management will not accept the online version of the exam (IIMA is one such example).

There are many other factors to consider when deciding between taking the GMAT online or in a test center. Ultimately, you want to pick the format that you’re most comfortable with, but here are some of the main things to consider:

As far as when to take the GMAT, you need to make sure you have it wrapped up well before your application deadlines. As a general recommendation, take the test 4 to 5 months before you apply. For more details on your overall test prep and admissions timeline—as well as more specifics about the registration process—see our article on GMAT dates.

Lastly, popular days and times for testing slots—especially at test centers—can still fill up, so be sure to schedule your appointment well in advance.

GMAT Cost and Fees

How much you’ll spend on the GMAT depends on your location and what services you elect to use. For a full break down, see our article on GMAT fees. And be sure to go to the MBA website for specifics on non-US locations.

In the United States, if everything goes well, the total and cheapest cost to you will be $275 at a test center. This assumes that you send your test score report to only 5 schools or less.

But let’s say that your situation is a little more complex:

• You take the online format ($300)
• You have to reschedule your exam a month before your appointment ($120 fee)
• You send out two additional score reports ($35 each for a total of $70)

Now, your total cost for taking the exam is $490. So, keep in mind that additional fees can quickly add up.

Frequently Asked Questions about the GMAT

More Resources and Next Steps

Now you know what the GMAT exam is all about! We’ve covered a lot in this article, so where do you go from here?

If you’re itching to try out some GMAT practice questions, you have a few options:

• Free 20-Question GMAT Diagnostic Quiz – Sample some questions from each section to see what the GMAT is all about
• Free, Full GMAT Practice Test – Or take a whole test if you’re ready to establish a baseline score.

Or you could brush up on some concepts first:

• Free GMAT Math Flashcards – Review some key concepts to know for the Quant section
• Free GMAT Lessons – Sample some Magoosh lessons covering topics from each section of the exam

Still not sure if the GMAT is the right test for you (what about the GRE instead?) or even undecided about business school?

• Hear more from Admissions at top business schools in our GradTalk MBA series on YouTube

Or if you’ve officially decided to take the GMAT, now is a great time to start prepping! For lessons covering all the content and strategies you need to know, as well as ample practice questions and practice tests, take a look at a Magoosh GMAT Premium plan.

Happy studying!