How Much Does a CFA® Make? Chartered Financial Analyst Salaries

In 2023, the median annual wage for all careers in the United States was $48,060. However, in the cluster of Business and Financial Occupations, this number was much higher, at $79,050.

So, if you’re passionate about finance, you may have a hefty wallet in your future.

This is especially true when it comes to becoming a Chartered Financial Analyst. But how much does a CFA® make, and how does that number fluctuate? And if you’re reading this, perhaps most importantly: is that number worth the time and money you’ll have to invest to earn that coveted charter?

Don’t worry; I’m here to help.

I’ll break down salaries, specific job roles, and the factors that influence earning potential so you can figure out if becoming a CFA® is the right path for you.

Key Takeaways

• CFA® Salaries Are Competitive: CFAs can earn between $60,000 and $90,000 starting out, with the potential to exceed $200,000 in senior roles. Bonuses often boost total compensation significantly.
• CFA® Certification Opens Doors: The CFA® charter is highly respected worldwide and leads to roles in portfolio management, investment banking, and other high-paying positions.
• Experience Matters: Your salary as a CFA® will grow with your experience, with mid-level professionals often earning six figures and senior roles earning far more.
• Industry and Location Impact Pay: CFAs in sectors like investment banking or in cities like New York and San Francisco tend to earn more than those in smaller markets or industries like corporate finance.
• CFA® vs. Other Certifications: Compared to the CPA or CFP®, the CFA® is ideal for investment-focused careers, offering unique advantages in financial analysis and investment management.

What Is a CFA® and Why Does It Matter?

Before we crunch numbers, let’s make sure we’re on the same page. A CFA®, or Chartered Financial Analyst, is a globally recognized certification offered by the CFA Institute. It’s considered the gold standard in investment management and financial analysis.

To earn this prestigious title, candidates have to pass three notoriously tough exams (hello, Level I, II, and III exams), meet work experience requirements, and commit to upholding ethical standards. It’s not a walk in the park, but for many, it’s worth the effort. Why?

Because having the CFA® designation opens doors to higher-paying positions and better career prospects in the finance industry.

How Much Does a CFA® Make?

The salary for CFA® charterholders can vary depending on factors like job title, geographic location, and years of experience. Here’s a breakdown to give you a clearer picture:

Starting Salaries for CFAs

If you’re just getting started, the base salary for entry-level roles can range between $50,000 and $90,000. A newly minted CFA often starts out as a financial analyst, investment analyst, or research associate. Bonuses and other perks can add tens of thousands of dollars to that base pay, but this can vary wildly by specific position, location, and company.

Median Annual Salary by Role

CFA® charterholders work in a variety of roles. Here’s a quick look at the average salaries for some common job titles:

• Portfolio Manager: $105,000–$155,000+ (can go much higher with experience)
• Credit Risk Analyst: $80,000–$116,000
• Financial Analyst: $72,000–$100,000
• Chief Financial Officer (CFO): $195,000–$320,000+
• Senior Consultant: $96,000–$136,000
• Investment Banker: $121,000–$165,000+

Total Compensation

It’s important to note that many finance roles include hefty bonuses. For example:

• Portfolio managers earn an average bonus of 70% of their salary or more. Some publications suggest that bonuses for top performers can be millions of dollars.
• Junior analysts can see bonuses between 25 and 50%.

When you factor in bonuses, commissions, and other perks, the total compensation for a CFA® charterholder can easily soar into the six- and seven-figure range, even for mid-level positions.

Factors That Impact a CFA’s Salary

So, what determines how much you’ll make as a CFA®? Here are some key factors:

Geographic Location

Where you work plays a huge role in your earning potential. For instance:

• In New York, Boston, Chicago, or San Franscisco, CFAs often earn significantly more than in smaller cities or regions. Obviously, Wall Street is a great place to be for financial professionals!
• In international hubs like Dubai, Frankfurt, Hong Kong, and Tokyo, salaries for folks in finance are also on the higher end.

Years of Experience

Unsurprisingly, your salary will grow as you gain more experience. Here’s a rough breakdown, created by comparing common career titles in different experience ranges via the Robert Half Salary Guide:

• Entry-level (0–3 years): $60,000–$90,000
• Mid-career (4–9 years): $100,000–$150,000+
• Senior-level (10+ years): $200,000 and up (especially for senior and executive roles like CFO or senior portfolio manager)

Industry

Not all finance sectors pay equally. For example:

• Investment banking and portfolio management tend to pay at the top end of the scale but may require work weeks of 60-80 hours.
• Financial planning or corporate finance roles might offer comparatively lower salaries but can provide better work-life balance.

Is the CFA® Worth It?

Let’s be honest: earning the CFA® charter isn’t easy. The CFA® program requires hundreds, and sometimes thousands, of hours of studying, and the exams have a notoriously low pass rate.

So, it better be worth all that time, money, and stress! The good news? If you’re passionate about the investment industry and want to land a high-paying role, earning your charter can be a game-changer.

Here are some benefits of a CFA®:

• It’s Globally Recognized: Whether you’re in New York or Singapore, the CFA® designation is respected by employers everywhere.
• Higher Salaries: On average, CFA® charterholders earn significantly more than their non-CFA® peers. Sources vary on the number, but it can range between 15% to 57%.
• Career Mobility: With the CFA® charter, you can transition into roles like portfolio management, equity research, or even the C-suite.

Comparing the CFA® to Other Certifications

You might be wondering how the CFA® stacks up against other finance certifications, like the CPA, CFP®, or MBA. While each has its strengths, here’s how the CFA® stands out:

• CFA® vs. CPA: The CFA® focuses on investment management, while the CPA is geared toward accounting. If you’re interested in wealth planning or asset management, the CFA® is the way to go.
• CFA® vs CFP®: The CFA® is tailored to investment management and financial analysis, while the CFP® focuses on personal financial planning for individuals. If you’re aiming for institutional clients, go with the CFA®; for personal finance, the CFP® is ideal.
• CFA® vs. MBA: An MBA can provide broader career options, but it’s also far more expensive and time-consuming. The CFA® program is more specialized and often viewed as a better fit for finance roles, whereas you may prefer an MBA if you enjoy management positions.

Final Thoughts: Is the CFA® Journey Right for You?

Deciding to pursue the CFA® charter is a big decision, but it can pay off—literally. With salaries ranging from $60,000 for entry-level roles to $500,000+ for senior positions, the earning potential is significant. If you’re passionate about the finance industry, willing to put in the work, and ready to embrace the challenge of the CFA® exams, this could be your dream career.

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