1200+ MBA programs now accept both the GRE exam and the GMAT for business school admission. As each test would require a considerable investment of time and money on your part, it is wise to carefully consider the merits of the GMAT vs the GRE before deciding which one to take.
GMAT vs GRE: A quick comparison
The comparison table below summarizes the main purpose of either test, and outlines a basic schema that can help understand the outline of either exam. Reviewing the table will help you better appreciate the core differences of either exam explained further below.
| GMAT | GRE | |
| Assessment of | High-order Quantitative and Verbal reasoning Ability to synthesise information from various sources and make informed conclusions | High-Order Quantitative and Verbal reasoning Richness of Vocabulary Analytical Writing |
| Preferred by | MBA programs | Graduate study programs |
| Designed to Test | ||
| Sections | Quantitative Reasoning Verbal Reasoning Data Insights | Analytical Writing Quantitative Reasoning Verbal Reasoning |
| Adaptive scoring algorithm? | Adaptive on a question by question basis | Adaptive on section basis: The difficulty of next sections depend on performance in previous sections |
| Test offering | Online and Test center | Online and Test center |
| Cost | ~300 USD | ~230 USD |
GMAT vs GRE: similarities and differences
Similarities related to skills tested
Reading Comprehension
Both exams test your ability to reading and comprehend long passages and answer various questions types ranging from detail questions to more challenging inference questions.
Critical Reasoning
Both exams test your critical thinking skills. For example, determining whether an argument is sound or not, identifying assumptions, conclusions, and how to best to strengthen or weaken an argument. The GMAT however specifically categorizes such a question type where as in the GRE such a question is usually a shorter form reading comprehension text.
Quantitative Reasoning
Both the GMAT and the GRE require a good understanding of secondary school level maths to answer challenging quantitive problems. There is a large overlap of topics, with few differences. (namely geometry is excluded from the GMAT syllabus).
Differences related to skills tested
Synthesis – The GMAT
The Data insights is a section that is very unique to the GMAT. Even though the GRE contains questions that require drawing conclusions from various charts and tables, the GMAT takes this further and really puts that skill to the test using 5 different question types.
Vocabulary and identifying the right context – The GRE
A vast and rich vocabulary is necessary to achieve a high percentile on the GRE. Memorizing a lot of words is not enough however. You need a strong ability to derive meaning from context and to determine what missing words may paint one of various logical structures when combined with the provided text. The GRE tests these skills using two question types:
Sentence Equivalence and Test completion.
If there is a real differentiator between the GMAT and GRE verbal reasoning sections it is these question types. A rich and vivid vocabulary is a great asset to any business leader no doubt, but we can agree that is not of the highest priority. As you consider which exam to take based on the strengths of your profile, this one is important. If for example you majored in English literature and comparative writing, you will have a considerable advantage on this section. One can argue that if you do well on the GRE verbal section you are more likely to do well on the GMAT verbal section than vice versa.
A note in favor of the GMAT: when the GMAT changed in Jan of 2024, it removed the old sentence correction question from its verbal section. This may demonstrate the desire of the GMAC® to create a more comprehensive testing experience that focuses on the must have business skills and to hence save candidates from acquiring skills that, though certainly valuable in the day to day of life, are not critical. Candidates who have little affinity or a superficial connection to the English language may choose to dedicate the little time they have to acquiring and improving skills that have direct impact on their ability to perform well in business programs, in which case the GMAT may be a better choice.
GMAT Structure and Design
Structure and content
| Section | # of Questions | Time (minutes) |
| Data Insights | 20 | 45 |
| Verbal Reasoning | 23 | 45 |
| Quantitative Reasoning | 21 | 45 |
Quantitative reasoning
The GMAT currently organizes the maths related topics as follows:
- Value, Order, Factors
- Ratios, Rates, and Percents
- Algebra, Equalities, and Inequalities
- Statistics, Sets, Counting, Probability, Estimation, and Series
The depth of knowledge in each category is limited to 8th to 9th grade mathematics, but the application is what makes the exam difficult. You are not required to master advanced mathematics, but master basic mathematics to do well.
Verbal reasoning
The two sections under verbal reasoning are
- Reading Comprehension – a 200 to 400 word passage with 3 to 4 questions per passage.
- Critical reasoning – A short paragraph that explains either an argument or a set of facts, and one question.
Data Insights
There are 5 question types in Data Insights:
- Data Sufficiency
- Table Analysis
- Graphics Interpretation
- Two-Part Analysis
- Multi-source reasoning
Why business schools need the GMAT
There are at least two reasons:
Demonstrating your readiness to handle the heavy course load
The course load at reputable business schools requires the reading of vast amounts of material in the form of cases or articles, to participate in class discussions and deliver group or individual projects. Often time, a financial analysis of a company’s metrics are required. To learn, participate in a meaningful way, a candidate must possess strong quantitative and verbal reasoning skills. The GMAT is designed to demonstrate such skills. In fact, the last change to the GMAT is aimed at testing said skills, with a focus on the ability to synthesise information from various sources of data.
Business school rankings
Average incoming class GMAT score is a variable used in the annual rankings of MBA programs. A high GMAT score is desirable. This does however seem to be less of a factor the stronger and more reputable a school is because the number of applications is high.
GRE structure and Design
The GRE was changed to a shorter version in September of 2023 and is now 1 hour and 58 minutes long since then.
Structure and content
| Section | # of Questions | Time (minutes) |
| Analytical Writing | One essay | 30′ |
| Verbal Reasoning | Section I: 12 questions Section II: 15 questions | 18′ 23′ |
| Quantitative Reasoning | Section I: 12 questions Section II: 15 questions | 21′ 26′ |
Quantitative Reasoning
In addition to the topics tested on the GMAT quant, the GRE syllabus includes Geometry. There are 4 types of questions in this section:
- Quantitative Comparison Questions: Deciding whether you can determine which of two quantities is larger or smaller or if they are equal.
- Multiple-choice Questions: Select One Answer Choice
- Multiple-choice Questions: Select One or More Answer Choices
- Numeric Entry Questions: Solving a problem, and then entering a numeric answer
Verbal Reasoning
The three question types are
- Reading Comprehension – questions are designed to test the wide range of abilities required to read and understand the kind of language commonly encountered in graduate school. As the GRE caters to a wide range of programs, you may find texts that are beyond the range of topics required for business school. In particular, literary texts may be difficult for students mainly interested in business programs.
- Text completion
- Sentence equivalence
Analytical Writing
According to the GRE, the analytical writing section tests your ability to
- articulate complex ideas clearly and effectively
- support ideas with relevant reasons and examples
- sustain a well-focused, coherent discussion
- control the elements of standard written English
As such, the range of language and command of the English language will favor native speakers and students who enjoy literature and have a strong bond with the English language.
Why graduate programs need the GRE
The test allows graduate programs to assess the quantitative and verbal reasoning skills of prospective candidates, and their ability to express their ideas in the English language.
So which is easier: GMAT or GRE?
The short answer is Neither.
About 200,000+ and 350,000+ young adults take the GMAT and GRE respectively per year. Any improvement you are hoping to make in either test requires that you become better than a certain number of either testing pool.
You have to consider the score percentiles. For example:
To improve from a 565 to 655 on the GMAT your score percentile has to increase from the 50th to the 90th percentile. You basically have to become better than 40% of the testing pool! This may lead you to the following question:
Is it easier to improve on the GMAT or GRE?
Keep in mind that an improvement in the percentile on either test will be equally difficult because it is a test against a large number of self-selecting candidates. Even though the test structures and the question types are different, a strong performance one either tests ultimately requires the following:
Strong quantitative and verbal reasoning.
Choosing between the GMAT vs GRE for an MBA program
The GRE caters to a very wide range of graduate programs that range from the Humanities to the Sciences. As such, a candidate purely focused on pursuing a business degree may find the GRE a more tedious exam to prepare for as he or she will have to work on skills that are not as relevant to the GMAT: a rich vocabulary and strong English language writing skills.
Availability of material
There is an endless abundance of material to prepare for either exam, but I believe (and this is a biased opinion) that the official content available to prepare is better organized and easier to consume for the GMAT vs GRE.
Business schools may still prefer the GMAT vs GRE
The GRE claims that business schools preferring the GMAT is a myth.
I disagree.
Even though the GRE is a great test, designed and administered to standards that are comparable to the GMAT, business schools do in fact still prefer the GMAT. Why?
Rankings. The average GMAT score of an incoming class is a metric used in business school rankings.
This is both a blessing and a curse for the GMAT.
It is a blessing because any candidate planning business school will default to the GMAT.
It is a curse because the GRE is becoming the life-saving option for candidates who cannot hit a target score on the GMAT. If the GRE does indeed become a standard for business schools and average GRE scores included in rankings, the flexibility an admissions committee shows in GRE scores is likely to end.
For the moment however, the advantage of taking the GRE is that it does not count in the rankings of MBA business schools. Admissions therefore may be more flexible if you fail to achieve a certain score. So, if you are struggling to hit a target score on the GMAT or the admissions committee of a school you’re applying to recommended that you take the GRE, then do so.