Cost To Take The GMAT Rises By $25 To $275

Even as it loses market share to rival test GRE, the Graduate Management Admission Council is increasing the cost to take its GMAT exam by $25, or 10%, starting on Feb. 4th.

The cost to sit for the exam will rise to $275 from $250. It is the first price increase in North America in 15 years. The boost in price now means that the GMAT costs $70 more than the rival $205 Graduate Record Examination.

In the latest 2019 testing year, 225,621 GMAT tests were taken, a 6.8% drop from the 242,214 a year earlier. GMAC racked up test revenues of $81.7 million in 2017, the latest year for which publicly released data is available.

PRICE HIKE COMES AS TEST VOLUME DECLINES & GRE CONTINUES TO TAKE MARKET SHARE FROM THE GMAT

The price hike comes at a time when more MBA applicants than ever before are submitting GRE scores instead of the GMAT. Poets&Quants’ analysis of U.S. News data from last fall’s 2018 intakes at the top 50 schools finds that most — 30 of 48 that report the data — saw a year-over-year gain between 2017 and 2018 in the percentage of entrants who submitted GRE scores.

Expand the scope to the last four years and that number grows to 41 of 48 schools, at an average increase of more than 100% (102.5%, to be precise). Eleven schools saw double-digit increases in percentage points of GRE submitters in the last year; in the last four, the number grows to 18 schools.

The price hike is the second GMAC has put through in less than 12 months. In April of last year, the cost of taking the GMAT in Europe was increased by $35 to $285. But GMAC softened the blow somewhat, announcing at the same time that where possible, candidates will be allowed to pay in local currency (euros or pounds sterling), and in U.S. dollars in countries where other currencies are used. The organization also announced modifications to its rescheduling and cancellation policies that it says will give candidates more flexibility and the opportunity to save on costs associated with last-minute changes.

DON’T MISS: AVERAGE GMAT SCORES AT THE TOP 50 LEADING BUSINESS SCHOOLS or AVERAGE GRE SCORES AT LEADING BUSINESS SCHOOLS