In order to apply for your Master of Business Administration (MBA), you’ll need to submit either a Graduate Management Admission Test (GMAT) or Graduate Record Examination (GRE) score. To complicate your choice between the two, both the GMAT and the GRE have come out with new versions of their respective MBA admissions exams in the …
In order to apply for your Master of Business Administration (MBA), you’ll need to submit either a Graduate Management Admission Test (GMAT) or Graduate Record Examination (GRE) score. To complicate your choice between the two, both the GMAT and the GRE have come out with new versions of their respective MBA admissions exams in the last two years: the GMAT Focus and the new shorter GRE. Before devoting preparation into taking one of these exams, it’s important to make an informed decision on which one is right for you. This article is your guide to understanding the key comparisons between the GMAT and GRE in regard to your MBA application.
The GRE and GMAT have both changed, with varying differences between each. The new GRE is a revised version, replacing the old GRE completely. The GMAT Focus is a new version of the GMAT, with the old GMAT remaining as an available option for test-takers. Both the new GRE and GMAT Focus are shorter editions of the old exams, with significantly reduced test-taking times and question quantities.
The new GRE content has mostly remained the same. Modifications were made in order to evaluate the same skills as the longer test in a more efficient manner, with hopes of avoiding test fatigue and enhancing focus. The old and new version both include quantitative reasoning, verbal reasoning, and analytical writing sections. However, all sections are shorter in the newer version, with fewer questions on the quantitative reasoning and verbal reasoning sections, and one essay instead of two on the analytical writing section.
The GMAT focus content within the quantitative reasoning and verbal reasoning sections has mostly remained the same. However, they removed their integrated reasoning and analytical writing sections and replaced it with a new data insights section. Modifications within the new GMAT were made with the intention to emphasize data analysis comprehension, a rising skill needed within today’s business world.
Previously, the GMAT held dominance over the GRE when it came to business school acceptance. However, the number of business schools accepting the GRE is steadily increasing, and most of the top business schools in the US today now approve both exams. Schools that accept both exams typically have no official preference, as GRE test takers are often seen as a way to enhance diversity within their application pool.
When deciding which exam to take, researching the schools you’re interested in is a crucial first step. See which exam scores they accept. If they accept both, then you should know whether you plan to apply to multiple types of programs or just MBA programs. If it’s the former, the GRE is much easier to go for because you’ll only need to study for one test across all of your potential programs. If it’s the latter and all schools are MBA programs or accept both, then you should choose the exam that matches your strengths. The GMAT and GRE differ in content, meaning one of them will be easier for you based on your unique thinking style and skill set. Let’s review the key differences between each exam.
The GMAT has been designed specifically for students who want to obtain their MBA, and can only be used to apply to business programs. It is accepted at all business schools, making it a reliable option for those set on that pathway. A summary of the sections included on the GMAT, and the amount of questions and time given for each section can be found below:
Section | Questions | Time |
|---|---|---|
Data Insights | 20 questions | 45 minutes |
Quantitative Reasoning | 21 questions | 45 minutes |
Verbal Reasoning | 23 questions | 45 minutes |
The exam contains 3 45-minute sections, focusing on data insights, quantitative reasoning, and verbal reasoning. Compared to the GRE, the GMAT’s quantitative questions place a greater emphasis on using data interpretation to solve problems, featuring complex puzzles that must be solved without a calculator. Additionally, their verbal questions place a heavier focus on grammar, logic, and critical reasoning. The GMAT also includes a new section not found on the GRE, the data insights section. This section has been added with the intention to reflect the rise of data-driven roles in the business industry and content in business schools, covering data analysis skills.
Due to the nature of this test, you will likely have a higher chance of succeeding if you gravitate towards a concrete and analytical thinking style, with a forte for mathematics.
The GRE is designed to be used to apply to all graduate programs, including but not limited to MBAs. Although the GRE is not accepted at all business schools, most business schools do accept GRE scores today due to the diversity it brings to their application pools. A summary of the sections included on the GRE, and the amount of questions and time given for each section can be found below:
Section | Questions | Time |
|---|---|---|
Analytical Writing | 1 essay | 30 minutes |
Quantitative Reasoning | 27 questions | 47 minutes |
Verbal Reasoning | 27 questions | 41 minutes |
The exam contains a 30-minute analytical writing section with an essay, 2 quantitative reasoning sections totaling 47 minutes, and 2 verbal reasoning sections totaling 41 minutes. Compared to the GMAT, the GRE’s quantitative questions tend to be more straightforward, and are allowed to be solved with a calculator. The verbal questions focus more on vocabulary, sentence equivalence, and text completion. The analytical writing section is unique to the GRE, as it is not found on the GMAT, putting those with high-level writing abilities at an advantage.
The GRE is typically easier for those with abstract and creative thinking styles who have a knack for developing innovative solutions to problems.
Content wise, the GMAT and GRE have always been contrasting exams. The two exams have grown even further apart with their new editions. Let’s explore the sections within each exam in more detail:
Both exams contain quantitative reasoning sections, designed to measure your understanding of basic math skills and ability to reason quantitatively and solve problems with quantitative methods. However, the GMAT places a greater emphasis on data interpretation and complex puzzle-solving, earning a reputation as a harder exam when it comes to math. The GMAT also does not allow calculators on this section, unlike the GRE where calculators are permitted, solidifying their reputation as a harder exam.
Experts agree that the GRE quantitative section is easier than the GMAT quantitative section. As shared in US News: “Students with stronger math skills may want to take the GMAT,” said Dan Edmonds, a test-prep tutor with IvyWise. But remember, more difficult questions means that other math whiz applicants are taking the GMAT too. It’s a tougher hill to climb in all aspects.
Each exam also contains a verbal reasoning section, but the GRE focuses more on vocabulary and sentence completion instead of grammar and critical reasoning on the GMAT. Both exams’ verbal reasoning sections include subsections focusing on passage analysis. However, the GMAT’s other subsections are on inductive and deductive reasoning, whereas the GRE has you analyze relationships among component parts of sentences and recognize relationships among words and concepts.
The analytical writing section is unique to the GRE. Unlike the GRE’s other two sections, the analytical writing section does not involve questions. Instead, you write an essay that is both human and computer-graded afterwards. The new GRE essay assignment topic is to analyze an issue. The essay is intended to measure your ability to articulate and support complex ideas, construct and evaluate arguments, and sustain a focused and coherent discussion.
The data insights section is only included on the GMAT Focus, and is a new addition to their exam, replacing the integrated reasoning and essay components on the original GMAT. The data insights section is weighted equally to the overall score, unlike the previous integrated reasoning section. Questions include data sufficiency, graphics interpretation, table analysis, two-part analysis, and multi-source reasoning. These questions are data-focused and are designed specifically to reflect skills needed in modern business.
Due to the differing focal points between their quantitative and verbal questions, and their opposing analytical writing and data insights sections, The GMAT is typically tailored to concrete thinkers and the GRE is typically tailored to abstract thinkers.
Graduate admission entrance exams are an investment of your time and money, so let’s make sure you have a full understanding of how each exam works – check out more differences between the GMAT and GRE below:
GMAT | GRE | |
|---|---|---|
Questions | 64 | 54 |
Time | 2.15 hours | 1.58 hours |
Break | 10 minute optional break | No break |
Scoring | Scores from 200 to 800 in 10-point increments for all sections | Scores from 130-170 in 1-point increments for verbal and quantitative reasoning sections; Scores from 0-6 in analytical writing section |
Cost | $250 | $205 |
Score Validity | 5 years | 5 years |
The GMAT and GRE are very similar in structure, as the GMAT is 2 hours and 15 minutes long with 64 questions, and the GRE is 1 hour and 58 minutes long with 54 questions. However, the GMAT provides the option for a 10 minute break unlike the GRE. Scoring differs between each exam, as the GMAT scores each section the same, whereas the GRE scores its verbal and quantitative reasoning sections differently from its analytical writing section. The GMAT is pricier than the GRE, costing $250 compared to the GRE’s cost of $205. Both exam scores are eligible to be used when applying for your MBA for 5 years. However, don’t forget that GRE scores are valid when applying to any graduate program, not just your MBA.
Probably the most important and overlooked aspect of choosing between the GMAT vs. GRE is the competition – specifically, who are you competing against when taking the test and receiving a scaled score. Both tests grade ‘on a curve’, meaning that they normalize their scores based on everyone’s performance. This isn’t malicious – they do it in case they make a particularly hard or easy version of the test and need to adjust scores accordingly. But it does mean that the test taking population of each test matters – your scores are being compared against everyone else’s, both at the scoring step and during the actual admissions process.
For the scoring step, the GRE is much more general than the GMAT, and has a less difficult quantitative section. This means that someone of the same math school will likely find it easier to stand out on the GRE and receive a top percentile score. So you’d think that means that the top business schools only accept the very best GRE applicants, right? Surprisingly, the opposite is true and offers a competitive advantage.
Below, we list the fifteen top business schools as reported by US News alongside their GMAT and GRE percentile scores. As you can see, most of these programs have a considerable gap in percentiles, meaning that you only need to be in the top 15% of applicant GRE scores to have a median chance of getting into UPenn Wharton, vs. a top 4% score for the GMAT. Not only is the GRE quant section easier, but you need a lower percentile score on it to get into a top school – win win!
University | Percentile - GMAT | Percentile - GRE | Difference |
|---|---|---|---|
University of Pennsylvania (Wharton) | 96% | 85% | -11% |
Stanford University (GSB) | 96% | 91% | -5% |
Harvard University (HBS) | 96% | 88% | -8% |
Massachusetts Institute of Technology (Sloan) | 96% | 88% | -8% |
University of Chicago (Booth) | 96% | 88% | -8% |
Columbia University (CBS) | 96% | 85% | -11% |
Northwestern University (Kellogg) | 96% | 85% | -11% |
University of California - Berkeley (Haas) | 96% | 84% | -12% |
Yale University (SOM) | 94% | 91% | -3% |
Duke University (Fuqua) | 89% | 78% | -11% |
University of Michigan (Ross) | 94% | 85% | -9% |
Dartmouth University (Tuck) | 94% | 85% | -9% |
New York University (Stern) | 94% | 85% | -9% |
University of Virginia (Darden) | 92% | 81% | -11% |
Cornell University (Johnson) | 89% | 80% | -9% |
Average | 94% | 85% | -9% |
The average difference is 9%, which is a substantial difference in necessary score across the two tests to reach the median score of a top-15 program.
When preparing for your MBA, you cannot go wrong with your choice of entrance exam, as long as your school of choice accepts both scores. However, the GRE is likely a better choice, as it has an easier quantitative section, works for any graduate program application, is equally good for any business school application, and puts you up against a less competitive field for those business school applications.
Check out our complete guide to the GRE exam for more information on the GRE, including tips for studying, sign-up, and more! If you’ve decided the GRE sounds like the right choice for you, online self-study courses such as our GRE prep course are great options for GRE preparation.
The Graduate Management Admission Test (commonly known as the GMAT) is a high stakes admissions exam for people looking to get into Masters in Business Administration (MBA) programs. Think of it like the SAT or ACT, but for business schools. In the competitive landscape of MBA education, the GMAT Focus Edition is the newest version …
The Graduate Management Admission Test (commonly known as the GMAT) is a high stakes admissions exam for people looking to get into Masters in Business Administration (MBA) programs. Think of it like the SAT or ACT, but for business graduate schools. In the competitive landscape of MBA education, the GMAT is the standard measure of …
