What is a Good GMAT Score & How is it Calculated?

What is a good GMAT score is a persistent query among business management studies aspirants. GMAT scores serve as a crucial component of the application process for many graduate business programmes in MBA schools abroad. As a prospective business student, understanding the significance of a good GMAT score is essential to set the target score. However, determining what is a good GMAT score can be a subjective matter and is influenced by factors such as the reputation of the university and the standard of the test-taker.

By understanding how the GMAT score is calculated, students can plan their preparation accordingly. They must strive for a score that enhances their chances of securing admission to the desired graduate business school. However, fixating on the GMAT score will not serve the purpose well as it is just one aspect of the application, with MBA colleges adopting a holistic approach to evaluate a candidate as per their academic record, work experience, essays and recommendation letters. In this article, we will delve deep into the subjectivity of a good GMAT score and understand how it is calculated. 

What is the GMAT Exam?

The Graduate Management Admission Test (GMAT) is a standardised exam specifically designed for admission to business and management programs at the postgraduate level. It has been the path for more than 60 years for leaders across the world who want to begin their academic journey in the field of business and management. Over 7,000 graduate business programs across over 2,300 schools use GMAT scores to select students for admission. GMAT total score ranges between 200-800. A goodGMAT exam score for MBA is required if you want to enter top business schools.

Structure of the GMAT Exam

The GMAT comprises a total of four sections that are timed separately. At the start of the exam, you are given an option to choose three section orders for their exam delivery, in which you can take optional eight-minute breaks during the exam. The total duration of the exam is more than 3 hours. The table mentioned below will give you an overview of the GMAT exam structure:

What Skills Does the GMAT Assess?

The GMAT exam, according to GMAC, assesses problem-solving, logic, and critical thinking abilities. These abilities are tested in four separate portions of the exam: Analytical Writing Assessment (AWA); Quantitative Section; Verbal Section andIntegrated Reasoning (IR).

The meritocratic approach to data analysis that the GMAT IR part examines is required for most MBA subjects, as most of the work done at the MBA level involves scanning information to locate the most useful, congruent, or incongruent elements of any given dataset.

The GMAT Quantitative section consists of quantitative reasoning and quantitative problem-solving. Candidates must exhibit their analytical skills in this section of the exam by answering a series of 'problem-solving' and 'data sufficiency' questions.

The GMAT Verbal section includes questions on reading comprehension, critical reasoning, and sentence correction. According to GMAC, the purpose of this format is to assess grammatical, conversational, critical, and analytical abilities. The candidate will be graded on how well the sentence's intent is articulated.

What is a Good GMAT Score?

There is no goodGMAT score for MBA as such. It is more about your target score and destination that the actual score. A target GMAT score will help you get into the b-school of your choice. However, it can be tricky to understand what a goodGMAT actually means. Read on to have a clear understanding of the same:

A Good GMAT Score is Not Absolute

Your good GMAT score for MBA will depend on a number of factors such as the university you are applying to, your career goals, the business program and so on. The score that you might consider could be a below-average score for your peer. But, if your score gets you into the university of your choice, then you get the answer of what isa goodGMAT score for you.Moreover, GMAT scores are not the only criteria for selection. Almost every university evaluates applicants on the basis of other factors including work experience, educational qualifications, skills, employability, statement of purpose, letter(s) of recommendation, and performance in the interview.

Determine Your Target GMAT Score

While there is no goodGMAT score for MBA, you need to find out what the ideal GMAT score/score range for you would be. Once you have figured that out, you can prepare for the test accordingly. The best way to learn your target GMAT score would be to first be realistic, then shortlist the programs you want to study, and talk to alumni or students to determine your goal.

Make a Note of Average GMAT Scores

A goodGMAT score for MBA is better achieved when you have a clear idea of the average GMAT scores of the universities/programs you are applying for. You can do so by visiting the university websites and finding out what is a good GMAT score range and the average GMAT score range of students who enrolled in your program of choice. This would help you determine what you should achieve in order to get into the university.

Get a Gist of How Universities Weigh GMAT Scores

Universities across the world weigh the scores of every section of the GMAT differently. While almost every school will look at your total score, some may also look at your section-wise scores and define their cutoff for each section. Once you have learned, you can prepare for a section more to score higher in the section that the university will look more closely at or put emphasis on.

Given below is a table that will help you understand what is a goodGMAT score along with the best and better GMAT scores:

Importance of a Good GMAT Score for Universities and Students

There are various reasons why MBA admissions officers give so much importance to your GMAT score:

Good GMAT Scores Demonstrate Your Capability to Handle Coursework

Business schools use your GMAT score to verify that you will be able to complete their academic programme. In this case, your score is used to determine whether you have the essential quantitative, verbal, and critical thinking skills to finish the curriculum, which includes topics such as finance, economics, and strategy. The primary responsibility of an admissions team is to attract students who will succeed in the programme!

MBA Rankings are Fueled by Average GMAT Scores

Rankings are important to business schools because candidates worry about rankings! When a school's rating rises, it attracts a larger and more qualified pool of students. Enrolling a more diverse student body improves the classroom experience and leads to better employment outcomes, both of which contribute to the school's reputation and rating. Naturally, business schools are enamoured with this.

The GMAT is relevant here since it is a direct element in MBA rankings not the percentiles on particular sections, nor the integrated reasoning or analytical writing evaluation scores. According to the US News MBA ranking methodology, a school's average GMAT score on the GMAT is a crucial ranking element that the institution can directly impact its decisions.

Because these rankings use the average GMAT score (rather than the median), every point counts. It makes no difference when computing the average if student #1 increases from 680 690 or student #2 increases from 760 770. Both 10-point boosts have the same favourable effect on the average GMAT score, and thus the school's ranking.

The requirement to maintain GMAT averages also explains why highly qualified applicants with high GMAT scores receive so many merit-based grants. The average for most major business schools, such as Harvard, Stanford, and Wharton, is approximately 730. This means that a 740 score, considered "excellent" by most criteria, is only +10 points higher than the school average, whereas a 770 score is +40 points higher.

Those +40 points can be used to increase the average scores directly. The institution may also choose to keep its GMAT average while admitting individuals with lower GMAT scores but the exceptional distinction in other areas. Both of these outcomes are valuable to business schools, which is why many institutions employ scholarships to attract candidates with high GMAT scores.

GMAT Scores Are Important to (Some) Post-MBA Employers

Your GMAT score is often essential in terms of perspective work chances. Many finance and consulting firms (such as Bain, McKinsey, and BCG) use the GMAT to determine which students to interview. A high or good GMAT score can help you stand out as a strong applicant and provide you with a competitive advantage.

Average GMAT Scores at Top 25 B-Schools

Here is a list of the top 25 universities offering the most popular business and management programs and their average class average GMAT scores in 2021,2020, 2019 and 2018:

Why Do B-Schools Ask for GMAT Scores?

Around 1,700 colleges and authorized educational institutions worldwide use GMAT scores as part of the admission criterion for their MBA programmes. Among these are the premier educational institutions, such as Harvard, Yale, MIT, Cambridge, and Oxford, which, in addition to other programmes, specialise in business, management, and related subjects.

These are just a handful of the famous colleges that offer a wide range of MBA programmes, spots which can be earned by scoring highly (typically over 650) on the GMAT. Over 6,000 graduate business programmes accept or require the GMAT for admission.

GMAT scores are frequently used as selection criteria for merit scholarships. Furthermore, GMAT results are used by some employers in addition to MBA entrance and scholarship applications. Finally, GMAT preparation fosters abilities necessary for success in business school and in managing positions.

A high GMAT score clearly adds a lot of value to your chances of admission, MBA experience, and employment opportunities. This makes the investment in GMAT prep well justified.

Moreover, business schools ask for GMAT scores because they tend to evaluate the applicants candidature based on the scores that they have achieved. Universities that do not require GMAT scores evaluate applicants only on their academic records. With a few notable exceptions (Oxford, for example), the GMAT is required for the vast majority of reputable programmes. A programme that does not require such a standardized test is almost always of lesser quality.

While there are real complaints about the GMAT, such as how it is culturally biased in favour of an Anglo-centered world, the test serves an important purpose. People apply to premier programmes from all over the world, and comparing undergraduate courses from Honduras, Slovenia, Romania, etc is tough. The education system is even corrupt in some countries. As a result, the GMAT acts as an objective criterion.

If an undergraduate student from country A and a student from Country B were both good students with high grades, they should be able to do well on the GMAT with some work. Furthermore, some universities demand the GMAT for some master's programmes but just recommend it for others. The GMAT is not required for all programmes at the London School of Economics, for example. Without a GMAT score, one can apply to Management programmes, for example. The same is true with Cassit is not required for all programmes.

How is the GMAT Scored?

Having a hard time understanding GMAT scores? Hey, we are with you! Your GMAT official score report includes five exam scores based on a fixed scale and the same is sent to the designated score recipients/b-schools.Note that the GMAT score validity is five years.Heres all you need to know about the GMAT score report and how it is scored.

What is GMAT Percentile Ranking?

GMAT scores also comprise a percentile ranking which refers to the percentage of candidates you scored higher than. For instance, a percentile ranking of 75% indicates that 25% of GMAT candidates obtained the same score or performed better than you. One amazing thing about GMAT percentile ranking is that it may change, unlike your GMAT score. This is because rankings are recalculated every summer withexam datafrom the last three years.

Total Score

Integrated Reasoning

Verbal Reasoning

Quantitive Reasoning

Analytical Writing Assessment

Note: Above figures are based on data collected between January 2018and December 2020.

GMAT Scores in a Test-Optional World

What is a good GMAT scorein a test-optional world? Given that many B-schools across the world have gone test-optional andmany applicants are confused about whether to take the GMAT or not. Still, you need to know what is a good GMAT score and what impact it can have on your MBA admission.

• If your GMAT scores are not good enough according to university standards, you might end up reducing your chances of getting into even a test-optional b-school.

• One year of being test-optional will not lead to universities doing away with GMAT scores altogether considering how the test has been a crucial part of MBA admissions.

• Even when a school makes the GMAT optional, there are higher chances of it looking at GMAT scores and it is not optimal to apply without a GMAT score. According to data released by Menlo Coaching, applicants who scored above 730 on the GMAT benefited from the scores by as much as 197%.

• Most B-schools abroad tend to offer scholarships to stronger applicants who also have goodGMAT scoresfor MBA. This is because this helps the program get a higher rank in the U.S. News MBA Ranking.

• When an MBA programs overall average GMAT score is higher, the B-school further gets a better ranking in the U.S. News MBA Ranking. This eventually makes submitting a good GMAT score more important given that most schools are looking for a more competitive group of applicants.

While it is impossible to define a good GMAT score, achieving a score above 650 for middle-tier colleges and 700 for top business schools is generally considered strong and can significantly enhance the chances of admission to many top-tier business schools. Success awaits those who are well-armed. With thorough preparation, dedication and a positive mindset, test-takers can conquer the GMAT and find the password of their dream business school.

Our experienced study abroad consultants have helped students with test preparations for various standardised exams including the GMAT.