GMAT vs CAT: Key Difference Between CAT and GMAT 

Did you know that over 200,000 students take the GMAT annually, while nearly 2 million attempt the CAT each year? These numbers reflect the fierce competition in business education worldwide. Many aspiring managers find themselves torn between these two exams, unsure which path to choose. The confusion of GMAT vs CAT still exists.

The decision isn’t easy. Both tests open doors to prestigious institutions, but they cater to different career goals and geographical preferences. Understanding the nuances between GMAT and CAT is crucial. It’s not just about picking an exam; it’s about aligning your choice with your long-term aspirations. Let’s dive into the key differences to help you make an informed decision. Choosing a GMAT beginners guide to help you with the process can be beneficial at the initial stages of your prep journey.

What Exactly is GMAT?

The GMAT (Graduate Management Admission Test) is a computer-adaptive test designed to assess analytical writing, integrated reasoning, verbal, and quantitative skills. Here’s what you need to know:

• Global Recognition: Unlike the CAT, which is primarily for Indian B-schools, the GMAT is accepted worldwide. It’s your ticket to top MBA programs across the globe. You can use the right GMAT books to help you with the process of cracking the GMAT.
• Test Structure:
  1. Analytical Writing Assessment (1 essay, 30 minutes)
  2. Integrated Reasoning (12 questions, 30 minutes)
  3. Quantitative Reasoning (31 questions, 62 minutes)
  4. Verbal Reasoning (36 questions, 65 minutes)
• Scoring: GMAT scores range from 200 to 800, with the average hovering around 565. Top business schools often look for scores above 700.
• Adaptive Testing: The GMAT is an adaptive test, meaning the difficulty adjusts based on your performance. This is a key difference from the CAT. You can try to understand GMAT test-taking tips to get a handle of how to face it.
• Validity: Your GMAT score is valid for 5 years, giving you plenty of time to apply to multiple programs.
• Frequency: You can take the GMAT up to five times in a calendar year, but only once every 16 days. Practice with the right GMAT test series to avoid multiple failures. Understand the benefits of the GMAT exam to make your preparation even more wholesome.
• Focus Areas: While both GMAT and CAT test verbal and quantitative skills, GMAT places more emphasis on critical reasoning and data interpretation. Master your GMAT time to finish the exam perfectly.
• Preparation: The GMAT syllabus is more standardized globally, whereas the CAT syllabus can vary slightly year to year. Seek the help of GMAT test guide for getting a hold over the process.

Remember, while many Indian B-schools accept GMAT scores, the CAT is still the primary entrance exam for most MBA programs in India. Your choice between GMAT and CAT should align with your career goals and target schools. Understand the importance of the GMAT exam and the proceed with it.

Eligibility and Attempts for GMAT

Unlike the CAT, which is primarily for Indian MBA aspirants, the GMAT is a global exam with more flexible eligibility criteria. Here’s what you need to know:

Eligibility

No age restrictions. Whether you’re a fresh graduate or an experienced professional, you can take the GMAT. No specific educational qualifications required. However, most test-takers have or are pursuing a bachelor’s degree. No mandatory work experience is necessary, but it can boost your overall application to business schools. Have a clear idea of the GMAT score validity as well.

Attempts and Frequency

You can take the GMAT up to 5 times in a calendar year. The only thing is that one must wait 16 days between attempts. A maximum of 8 total attempts allowed. Your GMAT score is valid for 5 years. Choose a good GMAT study plan and start your prep to crack GMAT in the first attempt.

Key Differences from CAT

While you take the CAT once a year, you have multiple GMAT attempts annually. The GMAT allows you to choose which scores to send to schools, unlike the CAT. GMAT scores are valid for 5 years, compared to the typically shorter validity of CAT scores. The purpose of the GMAT exam varies from that of CAT exam as well.

Remember, while many MBA colleges in India now accept GMAT scores, the CAT remains the primary entrance exam for most Indian B-schools. Your choice between GMAT and CAT should align with your target schools and career goals. If going international is what you are after, then make sure to choose a good GMAT summer course for it.

Both exams test verbal ability, quantitative ability, and logical reasoning, but the GMAT includes additional sections like Integrated Reasoning. The GMAT also tends to focus more on critical thinking and data interpretation compared to the CAT. If you feel you fall behind in certain sections, seek the help of cheat sheets like a sentence correction cheat sheet to help you with it.

GMAT Exam Fees

Let’s break down the costs associated with taking the GMAT, a crucial step in your journey to top business schools worldwide.

1. Standard Registration Fee: $275 (₹22,000 approx.)
2. Rescheduling Fee: $50 (₹4,000 approx.)
3. Cancellation Fee: $100 (₹8,000 approx.)
4. Additional Score Reports: $35 each (₹2,800 approx.)

Note: The GMAT exam fees are subject to change and may vary slightly based on location and currency exchange rates.

Average Salaries Post-MBA 

Salaries can vary widely based on factors like school reputation, location, industry, and individual performance. Here’s a rough guide:

1. Top US Business Schools: $120,000 – $200,000+ per year
2. Top European Business Schools: €70,000 – €120,000+ per year
3. Top Indian Business Schools: ₹15,00,000 – ₹30,00,000+ per year
4. Mid-tier Business Schools: Varies significantly, generally 20-40% lower than top schools

GMAT vs CAT: Cost and Salary Considerations

While these figures provide a general idea, individual outcomes can vary significantly. Your career success depends on multiple factors beyond just your GMAT or CAT score.

• The GMAT is more expensive than the CAT, which typically costs around ₹2,000.
• However, the GMAT opens doors to global opportunities, potentially leading to higher salaries.
• CAT is accepted by most Indian B-schools, while GMAT scores are accepted more widely internationally. The exam has to be approached a bit differently for GMAT non-maths background candidates though.
• Some Indian business schools accept both GMAT and CAT scores for MBA admissions, including for executive MBA programs.

What is CAT and Who Is It For?

The Common Admission Test (CAT) is one of the most prestigious and competitive entrance exams in India for admission to MBA and other postgraduate management programs. Conducted annually by the Indian Institutes of Management (IIMs), the CAT is the gateway to not only the IIMs but also over 1200 business schools across India.

What is CAT?

The CAT is a national-level entrance exam designed to evaluate a candidate’s skills in Quantitative Ability, Verbal Ability & Reading Comprehension, and Data Interpretation & Logical Reasoning. Here’s a closer look at its structure:

• Quantitative Ability (QA): This section tests mathematical skills and understanding of fundamental concepts in arithmetic, algebra, geometry, and data interpretation.
• Verbal Ability & Reading Comprehension (VARC): This section assesses proficiency in English language, including grammar, vocabulary, sentence correction, and comprehension skills through various passages.
• Data Interpretation & Logical Reasoning (DILR): This section measures the ability to interpret data and solve logical puzzles, involving tables, graphs, charts, and logical reasoning questions.

Each section is designed to test specific skills that are crucial for a successful career in management.

Who is CAT For?

The CAT is primarily for:

1. Aspiring Managers and Business Leaders: Those who aim to pursue an MBA or other postgraduate management degrees from top Indian business schools.
2. Recent Graduates: Fresh graduates from various disciplines looking to enhance their career prospects with a management degree.
3. Working Professionals: Individuals with work experience who wish to advance their careers or shift to managerial roles in different sectors.
4. Entrepreneurs: Those planning to start their own ventures and seeking formal education in business management to gain necessary skills and knowledge.
5. Students Targeting IIMs: The 20 Indian Institutes of Management (IIMs) are the most prestigious and sought-after business schools in India, and CAT scores are the primary criteria for admission.
6. Candidates Targeting Top Indian B-Schools: Apart from IIMs, over 1200 business schools in India accept CAT scores for their MBA programs, including institutes like FMS Delhi, MDI Gurgaon, SPJIMR Mumbai, and many others.

Key Points about CAT

• Frequency: The CAT is conducted once a year, typically in November.
• Application Process: The application process usually starts in August, and candidates need to register online on the official CAT website.
• Exam Fee: The CAT exam fee is INR 2,300 for general category candidates and INR 1,150 for SC, ST, and PwD candidates.
• Validity: CAT scores are valid for one year, and candidates need to reappear if they wish to improve their scores or apply in subsequent years.

The CAT is a crucial exam for anyone aiming to pursue an MBA in India. It’s designed to assess the analytical, verbal, and logical abilities of candidates, ensuring that only the most capable and well-rounded individuals make it to the top business schools. Whether you’re a fresh graduate, a working professional, or an aspiring entrepreneur, the CAT can be your gateway to a successful career in management.

Eligibility and Attempts for CAT

Understanding the eligibility criteria and attempts for the CAT exam is crucial for any aspirant planning to pursue an MBA in India. Candidates must hold a bachelor’s degree with at least 50% marks or equivalent CGPA. For SC, ST, and PwD candidates, the minimum percentage required is 45%.

Eligibility for CAT

To be eligible for CAT, candidates must meet the following criteria:

• Educational Qualification: A bachelor’s degree with at least 50% marks or equivalent CGPA (45% for SC, ST, and PwD candidates) from a recognized university.
• Final Year Students: Candidates appearing for the final year of their bachelor’s degree/equivalent qualification examination and those who have completed degree requirements and are awaiting results can also apply.
• Age Limit: There is no age restriction for taking the CAT exam.

Final year students of bachelor’s degree/equivalent qualification are eligible to apply. If selected, they must submit a certificate from their university/institution confirming completion of degree requirements on the date of the certificate issue.

Candidates with professional degrees (CA/CS/ICWA) with the required percentage (50% for General, 45% for SC/ST/PwD) are eligible. There is no age limit for taking the CAT exam.

The percentage of marks is calculated based on the practice followed by the respective university/institution. For grades/CGPA, the conversion to the percentage of marks is based on the procedure certified by the respective university/institution. If no such scheme exists, equivalence is established by dividing the candidate’s CGPA by the maximum possible CGPA and multiplying the result by 100.

Attempts and Frequency of CAT

The CAT exam is conducted once a year, typically in November. There is no restriction on the number of attempts. Candidates can take the CAT exam every year if they wish to improve their scores or apply to different programs. Candidates need to register online on the official CAT website. The registration process usually starts in August and closes in September.

The CAT exam fee is INR 2,300 for general category candidates and INR 1,150 for SC, ST, and PwD candidates. The fee is payable online through various payment modes. The CAT exam is conducted in multiple cities across India. Candidates can choose up to six preferred test cities during the registration process. The final test center is allocated based on availability and preference. Whether it is for CAT or GMAT, create an exam day checklist to make the process easier.

The CAT exam provides ample opportunities for candidates to prepare and improve their scores with no age limit and unlimited attempts. Meeting the straightforward educational qualifications allows fresh graduates and working professionals to register and take significant steps towards their management careers.

CAT Exam Fees and Average Salaries

Considering an MBA? Let’s look at the CAT exam fees and average salaries for graduates, especially in the context of both GMAT and CAT exams.

CAT Exam Fees

The CAT exam fee is INR 2,300 for general category candidates and INR 1,150 for SC, ST, and PwD candidates. Graduates who ace the CAT and get into top Indian business schools often secure high-paying jobs. The average salary for MBA graduates from premier Indian institutes ranges from INR 20 to 25 lakhs per annum.

Difference Between GMAT and CAT

Understanding the difference between GMAT and CAT is crucial:

• Scope: GMAT scores for admission are accepted worldwide, while CAT is accepted primarily in India.
• Frequency: GMAT can be taken year-round, whereas CAT is held once a year.
• Structure: The GMAT test includes Analytical Writing, Integrated Reasoning, Quantitative, and Verbal sections. CAT focuses on Quantitative Ability, Verbal Ability, Reading Comprehension, and Data Interpretation and Logical Reasoning.

Key Points

CAT scores are crucial for admission to top Indian business schools.

• GMAT and CAT Exams: Both are pivotal for MBA admissions; GMAT for global schools and CAT for Indian schools.
• GMAT Scores for Admission: GMAT scores are essential for many international MBA programs.
• Test Taker: The CAT exam sees a high number of test takers annually.
• Business Schools in India: Accept CAT scores for various MBA programs.

Choosing between the GMAT and CAT exams depends on your target schools and career goals. Both exams open doors to lucrative MBA opportunities.

Difference Between CAT and GMAT: GMAT vs CAT

If you’re planning to pursue an MBA, understanding the differences between the CAT and GMAT exams is crucial. Both tests are vital for admissions but serve different purposes and have unique characteristics. Here’s a comparison to help you decide which exam aligns with your goals.

Key Differences Between CAT and GMAT

Now let us take a look at the key differences between CAT and GMAT:

Aspect	CAT	GMAT
Scope	CAT is a national-level entrance exam primarily for MBA colleges in India	GMAT is a globally recognized exam accepted by business schools worldwide
Frequency	CAT is conducted once a year	GMAT can be taken five times a year. But understand the GMAT lifetime limit as well.
Acceptance	CAT scores are accepted by 20 IIMs and over 1200 MBA colleges in India	GMAT scores are accepted for admission by business schools worldwide, including top MBA colleges in India
Score Validity	CAT score is valid for one year	GMAT score is also accepted for five years. Use a good GMAT score calculator to clearly analyze your score.
Exam Structure	CAT quant, Verbal Ability, Reading Comprehension, Data Interpretation & Logical Reasoning	Analytical Writing, Integrated Reasoning, Quantitative, Verbal
Difficulty Level	CAT is known for its challenging Quant section; CAT is relatively more difficult compared to the GMAT	GMAT has a well-defined syllabus and question pattern; more structured. Always keep an eye on GMAT test dates and choose the right one.
Registration	CAT can be taken once a year; must wait for next year to improve	Candidates can register for the GMAT and take GMAT five times a year
Target Audience	CAT is primarily for Indian institutes	GMAT is accepted globally, including by top MBA colleges in India apart from IIMs
Flexibility	CAT can be taken once a year	GMAT can be taken five times a year
Ideal For	Students targeting admission to MBA colleges in India	Students targeting global business schools
Global Recognition	CAT isn’t globally recognized	GMAT is accepted by business schools worldwide. Choose the right GMAT course for the prep.
Local Acceptance	India accept CAT for their MBA programs	India accept GMAT scores for admission as well

Choosing between the CAT and the GMAT depends on your career aspirations and the business schools you’re targeting. If you aim for top Indian institutes like the IIMs, CAT scores are accepted and essential. However, if you seek a globally recognized MBA or want flexibility in test scheduling, GMAT candidates benefit from its worldwide acceptance. Understanding these key differences between CAT and GMAT will help you make a strategic decision for your MBA journey. There are plenty of scholarships available for GMAT, which is an added advantage.

Comparison of the relative difficulty: Is GMAT Easier Than CAT?

When deciding between the GMAT and CAT for MBA admissions, one common question is about their relative difficulty. Both exams have their unique challenges, but understanding these can help you decide which test suits you better.

Aspect	GMAT	CAT
Difficulty Level	GMAT questions have a well-defined syllabus and structure. Many find it easier to ace the GMAT with targeted preparation. Focus on GMAT order selection to make things easier.	CAT is known for its challenging Quant section. The difficulty level of the next CAT is unpredictable, making it relatively harder.
Frequency and Flexibility	Candidates can take GMAT five times a year, providing flexibility to retake and improve scores without waiting. Choose the right GMAT retake strategy steps to prepare accordingly.	CAT is conducted once a year. If you need to improve, you have to wait to take the exam next year.
Global Recognition	Business schools worldwide accept GMAT scores.	CAT scores are primarily accepted by Indian institutes.
Preparation Strategy	GMAT preparation can be systematic, focusing on specific question types. GMAT preparation time varies from person to person. Find out your weak areas and give extra attention to it like focusing on GMAT reading comprehension tips.	CAT preparation requires adaptability due to varying difficulty levels each year.
Sections and Focus	Part of the GMAT includes Analytical Writing, Integrated Reasoning, Quantitative, and Verbal sections.	CAT focuses on Quantitative Ability, Verbal Ability, Reading Comprehension, Data Interpretation & Logical Reasoning.

The GMAT’s structured format allows candidates to focus on specific question types, making it easier for those who prefer a clear study plan. This structure is a crucial part of the GMAT’s appeal.

• Adaptive Testing: The GMAT’s adaptive nature means that questions adjust to your ability level, which can help you maximize your score if you perform well early on.
• Quantitative Challenge: CAT’s Quant section is particularly challenging. The difficulty level of the next CAT can be unpredictable, adding to the test’s overall difficulty.
• Retake Flexibility: A candidate can take GMAT five times a year, providing ample opportunities to improve scores. In contrast, CAT takers must wait until the next year to retake the exam, which can be a significant disadvantage if things don’t go as planned.

Both the GMAT and the CAT present unique challenges. While the GMAT’s structured and flexible approach makes it easier for many to ace the GMAT, the CAT’s unpredictable difficulty level and challenging Quant section make it tougher for some. Ultimately, your choice should depend on your target business schools and your personal strengths. Business schools worldwide accept GMAT scores, making it a versatile option, whereas the CAT is essential for top Indian institutes. Consider these factors and choose the exam that aligns best with your MBA goals.

Which is better CAT or GMAT? 

When choosing between the GMAT and CAT for MBA admissions, one common question is which exam is easier. The relative difficulty of these exams can be a deciding factor, so let’s break down the key differences.

Structure and Syllabus

The GMAT has a well-defined structure with four sections: Analytical Writing Assessment, Integrated Reasoning, Quantitative, and Verbal. This consistency makes it easier for candidates to prepare systematically. GMAT questions are known for their clarity and consistency, which helps candidates practice specific question types effectively. In contrast, the CAT consists of three sections: Quantitative Ability, Verbal Ability & Reading Comprehension, and Data Interpretation & Logical Reasoning. The difficulty level of the next CAT can vary significantly each year, making it less predictable. CAT questions are generally more challenging, especially in the Quant section, and this variability can make it harder to prepare thoroughly.

Frequency and Flexibility

One of the significant advantages of the GMAT is its frequency and flexibility. Candidates can take the GMAT five times a year, offering multiple opportunities to retake and improve scores without waiting long. This frequent scheduling allows candidates to take the exam next year (or even within the same year) if they need to improve their scores. On the other hand, the CAT is conducted once a year. If you need to retake it to improve your score, you must wait to take the exam next year. This once-a-year schedule can add pressure, as candidates have only one chance annually to perform well.

Preparation and Study Material

The availability of preparation resources also plays a crucial role in determining the relative difficulty of these exams. For the GMAT, there are abundant resources and official guides available, making it easier to find study material. The well-defined syllabus and consistent question types allow candidates to create effective study plans. In contrast, while there are many resources for CAT preparation, the variability in the exam pattern makes it harder to predict which areas will be most challenging. Candidates need to be adaptable and ready for unexpected difficulties in the exam, which can make preparation more stressful.

Exam Experience

The GMAT is a computer-adaptive test, meaning the difficulty of questions adjusts based on the candidate’s performance. This adaptive testing can help candidates maximize their scores by performing well in the initial questions. The structured and predictable nature of the GMAT exam can reduce anxiety and make the test-taking experience smoother. In contrast, the CAT is a traditional, non-adaptive test where the difficulty level remains constant throughout the exam. The variability in difficulty and the high competition can make the CAT more stressful for many candidates.

While both the GMAT and CAT are challenging in their own ways, many candidates find the GMAT easier due to its predictable structure, frequent testing opportunities, and abundant preparation resources. The CAT’s higher variability in difficulty, combined with its once-a-year schedule, often makes it a tougher exam for candidates. Ultimately, your experience will depend on your strengths and preparation strategy.

Conclusion

Choosing between the GMAT and CAT requires careful consideration of your career goals, target schools, and preparation strengths. While the GMAT offers global recognition and flexibility with multiple attempts, the CAT is essential for entry into India’s top business schools like the IIMs. Understanding the eligibility criteria and the unique challenges of each exam can help you make an informed decision. Whether you opt for the GMAT or CAT, thorough preparation and a clear strategy will be key to achieving your MBA aspirations.

Elevate your GMAT performance and unlock the doors to prestigious business schools with Ambitio’s comprehensive preparation tools. Our expertly designed resources and personalized strategies will help you master each section of the GMAT, ensuring you achieve a score that sets you apart in the competitive admissions landscape.

FAQs