A 17 min read

GMAT VS CAT – The key difference between GMAT and CAT is that GMAT is a global exam accepted by over 2400 business schools and 7700 MBA programs worldwide, whereas CAT is a national-level entrance exam and is accepted by Indian business schools. But is that all? In this article, we explore the differences between GMAT vs CAT to help you decide which is a better exam for you: CAT or GMAT?

The GMAT is conducted by the Graduate Management Admission Council (GMAC) and is accepted by top MBA colleges in India like XLRI Jamshedpur, MDI Gurgaon, and the Indian School of Business Hyderabad/Mohali. Therefore, deciding between taking the GMAT and CAT is a dilemma faced by countless Indian MBA aspirants as both serve as stepping stones to gaining admission into an MBA program.

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Key differences between GMAT and CAT

Both the GMAT and the CAT serve as standardized tests for admission to MBA programs. However, both differ in the scope of their acceptability, validity, fees, frequency of the exam, format and more. GMAT is a global exam accepted by more than 7000 MBA programs worldwide, whereas CAT is accepted only by Indian business schools. Also, the GMAT score is valid for 5 years, whereas the CAT score is only valid for 1 year. GMAT has an exam fee of $275( approx. Rs 22,500), whereas CAT has a registration fee of Rs 2300. While GMAT can be given multiple times a year and at any time of the year, depending on the slot availability, CAT can only be given once a year on the date decided by the IIM conducting the exam.

In spite of the many differences, both the CAT and GMAT are a test of your management aptitude and they are both designed to provide a measure of skills such as:

• Quantitative ability
• Reasoning skills
• Data Interpretation

However, there are quite a few fundamental differences between these exams. Take a look at the table below to see a few differences between GMAT and CAT in 2023:

GMAT vs CAT	CAT	GMAT
Full-Form	Common Admission Test	Graduate Management Admission Test
Conducting body	Indian Institute of Management	Graduate Management Admission Council
Validity	One year	Five years
Eligibility	Bachelor’s degree with a minimum of 50% marks	At least 13 years of age
Frequency	Once a year	Round the year
Accepted by	Indian business schools	Global business schools
Mode of Exam	Online	Online
Number of sections	3	4
Number of questions	66	80
Exam Duration	120 minutes	187 minutes
Exam Fee	₹2,300	USD 275

Planning to pursue MBA? Watch this video where we discuss the top 5 reasons to pursue an MBA:

Let us now understand how GMAT and CAT differ from each other:

Format and Duration

The CAT consists of 3 sections, whereas the GMAT has 4 sections which include an analytical writing assessment. Though both the GMAT and the CAT are computer-based tests, the GMAT is adaptive in nature whereas the CAT isn’t. This means that the difficulty level of the next question is decided based on your performance in the previous question.

The CAT lasts for 2 hours while the GMAT lasts for 3 hours and 7 minutes.

The GMAT is delivered on-demand around the year via Pearson Vue testing facilities at 39 centers in 34 cities across India. Read our other article to know more about GMAT Test centers and the testing environment.

The CAT is conducted by one of the 6 oldest IIMs in a rotational fashion. The dates of the test are announced by the convening IIM in either July or August of every year.

Score Validity

Your GMAT score is valid for 5 years from the date of your test. This is because GMAC (the organization that conducts the GMAT) believes your reasoning skills and abilities would not erode substantially over a 5-year period.

However, business schools may have their own policies with regard to the score that they accept. Make sure you check with your target school before you apply.

On the other hand, CAT scores are valid for just 1 year from the date of the test. Also, if you are not able to score well in an attempt, you would have to wait for a year to take it again.

This is not the case with the GMAT as it can be taken on demand. The opportunity cost of waiting for a year would be a consideration for a lot of candidates.

Eligibility and Attempts

Anyone over 18 years of age can take the GMAT. If you’re below the age of 18 i.e. 13-18 years of age, then, with parental permission you can take the GMAT.

You can take the GMAT up to 5 times a year. The minimum duration between any attempts should be at least 16 days. There is an 8-attempt overall lifetime limit.

The CAT can be taken only once every year on a date specified by the convening IIM. The date on which the CAT will be conducted is announced by the convening IIM in July or August of every year.

There is no restriction on the number of attempts you can take the CAT and no upper age limit. However, to attempt the CAT you need to have a bachelor’s degree from a recognized institution or its equivalent. Students in the final year of their respective degree programs can also appear and take the CAT.

Thus, the GMAT due to its on-demand nature and opportunity for score improvement and scheduling flexibility is the better option.

Exam Fees and Average Salaries

It costs $275 to register for the GMAT. You can schedule and book an appointment after creating and registering an account on mba.com.

Read this article to know more about how much does it cost to take the GMAT exam in India.

The registration and test fee for CAT is INR  2300/-. The convening IIM releases a notification generally in the months of July or August. The details related to the dates of registration, exam fees, and other information are included in this notification. Since the CAT is not administered on demand you have to be careful about the deadlines for registration. Here is the link to the notification of CAT 2022.

The average salary offered to IIM graduates of the Top -10 IIMs is between the range of INR 25-30 lakhs The highest international offer made to an IIM graduate stands at INR 1.32 Crore. Whereas, the average salary offered to graduates of the top 25 MBA programs globally are significantly higher ~ INR 1.05 Crore.

Did you know a GMAT score of 730+ yields incremental $500K in ROI?

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Here are the key differences between the GMAT and CAT:

Parameter	GMAT	CAT
Sections	4 Sections         · Quantitative reasoning (QR) ·Verbal reasoning (VR) · Analytical writing (AWA) · Integrated Reasoning (IR)	3 Sections         ·Verbal ability and reading comprehension (VARC) ·Data Interpretation and logical reasoning (DILR) ·Quantitative Ability (QA)
No. of Questions/ Time limit	80 Questions in total         ·QR – 31 Questions / 62 Minutes ·VR – 36 Questions / 65 Minutes ·IR – 12 Questions / 30 Minutes ·AWA – 1 Question / 30 Minutes	100 Questions in total         ·VARC – 34 Questions / 40 minutes ·DILR – 32 Questions / 40 minutes ·QA – 34 Questions / 40 minutes
Test Duration	3 Hours and 7 Minutes	2 Hours
Adaptiveness	Question adaptive	Not adaptive
Score reporting	Absolute score (Out of 800) and percentile score reported	Only Percentile score reported
Score Validity	5 Years	1 Year
Scheduling Flexibility	Delivered on-demand, can be taken up to 5 times a year. With at least 16 days between attempts.	Conducted only once a year.
Test Fee	$ 275 (approx INR 23,000)	INR 2300
Eligibility	·Lower age limit – 13 years         · Upper age limit – None	· No lower age limit but bachelor’s degree from a recognized university or equal qualification required.         · No upper age limit
Number of Attempts	· Maximum 5 attempts in a year (Minimum 16 days between consecutive attempts)         · Lifetime Limit of 8 attempts overall	· Can be attempted only once every year.         · No limit on the number of attempts.
Acceptance	· 7000+ programs (Including ISB, SPJIMR, MDI, IIMs (Executive Programs)         · Accepted by business schools in 110 countries [1]	·20 IIMs         · Other management colleges in India (SPJIMR, FMS, MDI, IMT, IIFT) ·Accepted for admission in India only

Comparison of the relative difficulty | Is GMAT easier than CAT?

The GMAT has a very well-defined syllabus and question types, thus it is easier to prepare for GMAT than the CAT. It is possible to score 700+ on the GMAT with 90 – 120 hours of dedicated preparation.

On the other hand, the CAT syllabus is not very well defined, and thus more preparation time is required as compared to the GMAT.

The verbal section of the GMAT generally poses a greater challenge for Indian test takers who are non-native English speakers as compared to the CAT. The Quantitative section of the CAT is relatively more difficult than the GMAT.

Did you know you can take the GMAT at home? Watch this video to know more. You can also check out our article on GMAT online exam.

CAT vs New GMAT – GMAT Focus edition

Are you confused about whether to take the GMAT or CAT exam? If so, you’ll want to know about the exciting new changes coming to the GMAT. The GMAT Focus edition is set to debut, and it promises to be more similar to the CAT than ever before. In fact, the new GMAT Focus edition will feature three sections just like the CAT: Verbal Reasoning, Quantitative Reasoning, and a new section called Data Insights.

This is a significant departure from the current version of the GMAT, which includes four sections but lacks the data interpretation and logical reasoning section found in the CAT. With the addition of the new Data Insights section, the GMAT Focus edition will be more comparable to the CAT than ever before. This new section is expected to be similar to the DILR section of the CAT.

In addition to the new section, the GMAT Focus edition will feature section durations similar to the CAT. The new version of the GMAT will have three sections of 45 minutes each, just slightly longer than the CAT’s 40-minute sections. The current version of the GMAT, on the other hand, features Quantitative and Verbal reasoning sections that are approximately an hour long each. The new GMAT exam will thus have significantly shorter section durations. Here are some of the key differences between CAT, the new GMAT- GMAT focus edition, and the current GMAT-

CAT vs GMAT Focus Edition vs Current GMAT Version

Parameter	CAT	GMAT Focus edition	Current GMAT
Test duration	2 hours	2 hours 15 minutes	3 hours 7 minutes
No of sections	3	3	4
Name of the sections	Quantitative Ability (QA) · Verbal ability and reading comprehension (VARC) ·Data Interpretation and logical reasoning (DILR)	Quantitative reasoning (QR) ·Verbal reasoning (VR) · Data Insights (DI)	Quantitative reasoning (QR) ·Verbal reasoning (VR) · Analytical writing (AWA) · Integrated Reasoning (IR)
Section duration	40 minutes each	45 minutes each	QR- 62 minutes · VR- 65 minutes · IR- 30 minutes · AWA- 30 minutes
No of questions	100 Questions in total         ·VARC – 34 Questions ·DILR – 32 Questions QA – 34 Questions	64 Questions in total (tentative) QR- 21 Questions· VR- 23 Questions · DI- 20 Questions	80 Questions in total         ·QR – 31 Questions ·VR – 36 Questions / 65 Minutes ·IR – 12 Questions ·AWA – 1 Question

CAT vs New GMAT: GMAT Focus Edition- What does it mean for the test takers?

With a test structure that is now more similar to the CAT, the GMAT Focus edition is a game changer for students looking to prepare for both the exams- CAT and GMAT. The gap between the two exams will significantly reduce with the introduction of the GMAT Focus edition.

Test takers looking to take the GMAT and who have previously prepared for CAT will have a significant advantage in the new Data Insights section of the GMAT Focus edition. Additionally, the GMAT Focus edition will no longer include the AWA section, which was present in the earlier version of the GMAT.

Preparing for both the GMAT and CAT exams simultaneously or back to back has never been easier, thanks to the significant overlap in their syllabus. To maximize your preparation, focus on improving your Data Insights skills, in addition to quantitative and verbal reasoning skills. Remember to leverage the similarities between the exams to increase your chances of success. Read this article to understand more about how to leverage your CAT preparation to ace the GMAT

To help you familiarize yourself with the exam formats and achieve your target scores, we recommend taking advantage of our free mock test and free trial. Our FREE GMAT mock test provides a detailed analysis of your performance and establishes your baseline score. Additionally, our free trial grants you access to over 10 hours of AI-driven video lessons and 400+ GMAT practice questions.

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What is tested in each of these exams?

GMAT vs CAT – Syllabus

The biggest difference between GMAT and CAT syllabus is the absence of the Analytical Writing Assessment (AWA) section in CAT. Apart from the AWA section both exams test Quant, Verbal, and Reasoning skills.

GMAT vs CAT – Verbal syllabus

The following verbal topics are asked on the GMAT and CAT –

CAT	GMAT
Fill in the blanks	Verb tense
Grammar	Pronoun
Para Completion and inference	Subject-verb agreement
Reading Comprehension	Modifiers
Verbal Logic	Idioms
Para jumbles	Parallelism
Verbal Reasoning	Comparison
Syllogisms	Inference
Contextual usage	Assumption
Analogies	Evaluate
Different usage of the same word	Strengthen and weaken
Antonyms	Boldface
Sentence completion	Paradox
Jumbled paragraphs
Foreign language words used in English
Sentence correction
Idioms
One word substitution

GMAT vs CAT – Quant syllabus

The following Quant topics are asked on the GMAT and CAT

CAT	GMAT
Geometry	Number properties
Trigonometry	Multiples and factors
Mensuration	Fractions
Ratios and Proportion	Decimals
Number system	Percentages
Work and time	Averages
HCF & LCM	Powers and roots
Algebra	Profit and loss
Profit & Loss	Simple and compound interest
In-equations Quadratic and linear equations	Speed, time, and distance
Geometric Progression	Pipes, cisterns, and work time
Percentages	Ratio and proportion
Averages	Mixtures and alligations
Partnership (Accounts)	Descriptive statistics
Time-Speed-Distance	Set theory
Surds and Indices	Probability
Inequalities	Permutation and combination
Logarithms	Monomials, polynomials
	Algebraic expressions and equations
	Functions
	Exponents
	Arithmetic and geometric progression
	Quadratic equations
	Inequalities and basic statistics
	Lines and angles
	Triangles
	Quadrilaterals
	Circles
	Rectangular solids and cylinders
	Coordinate geometry

GMAT vs. CAT – Adaptive vs. non-adaptive

The GMAT is an adaptive test. This means that the difficulty level of your next question depends on your performance in the previous question.

Thus, the GMAT is a test of ability as it constantly adapts and refines the test to your ability level. The test starts off with a question of medium difficulty, if you answer this question correctly, the next question is of a slightly higher difficulty level. Hence, there is no option to review your answers or skip a question.

Let us understand this better with the help of an example of 2 students taking the GMAT:

Student 1:

This student starts with a question of medium difficulty. After answering this question correctly, the student receives a question of a higher difficulty level.

Once the student answers this question correctly the next question is of slightly higher difficulty. The performance of this student can be plotted on a graph as shown above.

Student 2:

This student starts in a similar way to student 2. However, the student incorrectly answers the first few questions presented to him.

Analysis and takeaways

Now, since student 1 answers initial questions and quite a few of the proceeding questions correctly, the GMAT testing algorithm rightly judges this candidate to have a higher ability as he has correctly answered questions of higher difficulty. This is reflected in this student’s higher GMAT score.

However, since student 2 answers the initial few questions incorrectly, the algorithm does not present his questions of a higher difficulty level. Thus, this student is judged to have a lower ability and hence a lower GMAT score. even though the student may have answered more questions correctly overall.

The conclusion here is that the GMAT is a test of ability rather than accuracy.

Learn more about how the Computer Adaptive GMAT works in this article.

CAT, on the other hand, is a non-adaptive test and focuses on accuracy rather than ability. Since in the CAT only percentile scores are reported, your score depends solely on how many questions you answered correctly. You can review your answers in a section before submission. Also, an on-screen calculator is provided. There is a negative marking for wrong answers.

Are you planning to enroll in a US business school? Let us help you conquer the first step of the process i.e., taking the GMAT. Take a free GMAT mock to understand your baseline score and start your GMAT prep with our free trial. We are the most reviewed online GMAT Prep company with 2500+ reviews on GMATClub.

What factors to consider in choosing GMAT or CAT? | How to choose between GMAT and CAT

In deciding how to choose between GMAT and CAT, you should take the following factors into consideration:

• Your career goals
• Choice of program
• Location preference
• Investment vs return

Let us explore each of these one by one.

Career Goals

Besides the 20 IIMs, more than 100 other B-schools all over India accept CAT scores for admission into graduate management programs. A few international business schools also accept CAT scores for admission into management programs. Some of the international schools that accept CAT scores are:

Sr No	School/University	Program	Location
1	SP Jain Institute of Management	MBA	Sydney/Dubai/Singapore
2	SKEMA Business School	MiM	France
3	Singapore Management University	MiM	Singapore

The GMAT is accepted for admission into graduate management programs at more than 7000 programs across 2,300+ graduate business schools worldwide. Some of the world’s top-ranked business schools accept GMAT scores for admission into their graduate management programs such as:

• Harvard Business School
• MIT Sloan School of Management
• Stanford Graduate School of Business
• INSEAD

If your career goal is to study abroad and gain valuable international exposure and work experience, then the GMAT is the obvious choice because of its wider acceptance globally. The GMAT is further gaining acceptance as an admission criterion for Executive programs at some of the top Indian B-schools.

140+ Indian Business Schools are now accepting GMAT Scores for admission into management programs, including IIMs for their Executive programs. Learn more about the scope of GMAT in India.

On the contrary, if your primary goal is to live and work in India at some of the best domestic as well as global employers, then the CAT is the preferred choice.

Choice of Program

Depending on your target B-school and its program admission requirements, you may need to take either the GMAT or CAT.

E.g., If your target program is the regular 2-year, the full-time residential MBA program at any IIM then you must have a valid CAT score. However, if you are considering the 1-year full-time executive program (EPGP/PGPEx) then a valid GMAT score is accepted.

Also, since the IIMs conduct the CAT, it is a better predictor of success in the programs they offer, as it tests for the skills that are required to succeed in the program.

Note: If you are an international or overseas student, your GMAT score is considered for admission into some of the top programs at Indian B-schools.

E.g., If you want to study at ISB, then a GMAT score is necessary as it is the only accepted test score besides the GRE.

Location Preference

If you have decided to study in a particular geographical location, due to the proximity of employers in your target industry; then this is a factor you should consider in deciding which test to take between GMAT or CAT.

E.g., If you are looking for a role in luxury management, for which the best employers are in France. It would be best to pursue an MBA from a B-school around that area as this would place you in close proximity with your target employers and open up opportunities for internships as well.

Investment vs Return (GMAT vs. CAT)

In the table below is a breakdown of the costs involved if you’re considering taking either test:

Sr No	Expense	GMAT	CAT
1	Test Fee	$275	$ 30
2	Preparation Cost	$349 (e-GMAT course)	$ 450 (Average Cost of CAT coaching in-classroom programs)
3	Cost of rescheduling	$50 – More than 60 days prior to appointment $100 – 15 to 60 days prior to appointment $150 – 1 to 14 days prior to appointment	Conducted only once a year (rescheduling not possible)
4	Score reporting	$35 each (First 5 reports are free)	Reported to all IIMs free of cost.
5	Enhanced score report	$30	Not available
6	Score Validity	5 Years	1 Year
7	Total Cost	$ 829	$ 480
8	Total cost per year	$ 166	$ 480

In the cost comparison shown above, we have considered the USD to INR conversion rate as (1 USD = 70 INR) and the average preparation cost of one of the most popular classroom coaching available for the CAT.

Did you know a GMAT score of 730+ yields an incremental $500K in ROI? Start your GMAT Preparation by Signing up for our FREE Trial and get access to FREE online GMAT preparation resources. We are the most reviewed GMAT preparation company on GMATClub with more than 2500+ reviews.

Few key points to note for GMAT vs CAT:

• Since the CAT is conducted only once a year, if you do not make the cut-off for your target college/program your only option is to wait another year to take it again, whereas the GMAT can be taken multiple times with a minimum of 16 days between attempts.
• Thus, the opportunity cost is quite higher in the case of the CAT. On the other hand, since you can take the GMAT multiple times, with better preparation and strategy you can improve your score and your profile to suit your target program better.
• The GMAT Enhanced Score Report (ESR) offered at an additional cost, could provide valuable insights into your performance. Developing your retake strategy based on your ESR analysis could be of immense benefit. No such facility is available for the CAT.
• Also, since your GMAT score is valid for five years from the date of your test, the actual cost for the GMAT comes down to $167/year.

Graduates of the top 25 business schools in the US 2022 earn greater than $ 150,000 in starting salaries. With graduates of the top 10 schools making more than $ 200,000 a year. In contrast to this, the highest international offer made to an IIM-A student in 2022 was INR 1.32 crore ($ 1,59,000).

Thus, the key takeaway here is, that a good GMAT score consistently gives better ROI than the CAT.

Scholarships – The added advantage of GMAT over CAT

A good GMAT score helps not only in getting into a top business school, but it also increases the chances of securing a partial scholarship or a full fellowship. These can help immensely with the cost of doing an MBA.

To offset the increase in the cost of an MBA, top business schools are increasingly offering scholarships, fellowships and other forms of financial aid. Harvard Business School offered some form of financial aid to 50% of its incoming class.

Scholarships offered by programs to business school students crossed $ 230 Million in 2017.

Read our article on scholarships and GMAT score, to learn more about how to secure a scholarship at a top Business school.

Scholarships based on CAT score

While some form of need-based financial assistance is offered at most IIMs, they are in the form of loans rather than scholarships.

Scholarships offered by companies and private entities are also available to students.

An exhaustive list of scholarships available can be found here.

More information about the scholarships available at each institution can be found on the institution’s website.

Takeaways – How to choose between GMAT vs CAT?

The following criteria should help you in deciding GMAT v.s. CAT

• Decide on your career goals (International Exposure and Work Opportunities vs. Domestic)
• Choice of Program (Executive, Full-time 1 year, Full Time 2 years)
• Location Preference (India v.s. Abroad)
• Investment vs. Return (GMAT vs CAT)
• Scholarship Opportunities (GMAT vs CAT)

In conclusion, the GMAT with its wider worldwide acceptance, lower opportunity cost, and greater return on investment along with its increasing acceptance to executive MBA programs at IIMs and a few other Indian B-schools stands out as the better option between GMAT vs CAT. However, if you are aiming for admission into the traditional 2 year MBA program at IIMs or other business schools in India such as MDI or SPJIMR, then the CAT may be your only choice.

We hope this article provides you with the information to decide between the GMAT and CAT. Please write to us with your questions at acethegmat@e-gmat.com.

Are you planning to enroll in a US business school? Let us help you conquer the first step of the process i.e., taking the GMAT. Take a free GMAT mock to understand your baseline score and start your GMAT prep with our free trial. We are the most reviewed online GMAT Prep company with 2500+ reviews on GMATClub.

FAQs – GMAT vs CAT