For aspiring finance professionals, their nightmares aren’t filled with ghouls and goblins, no life-or-death high-speed chases, no falling off cliffs to a void below.
Instead, that nightmare is… the CFA® exam pass rates.
Each level of the CFA® exam is notoriously difficult to pass, and thousands of candidates prepare rigorously every year in hopes of earning their CFA® charter. But, more often than not, that pass rate keeps candidates from earning their charter.
But don’t let it deter you!
Together, we will dive into the details of the CFA® pass rate, what affects it, and how scoring is calculated, all to improve your chances of success on every level of the CFA® exam.
Key Takeaways
- CFA® Pass Rates Are Low: The CFA® exams have challenging pass rates, with only about 40% of candidates passing Level I and slightly higher (but still low) rates for Levels II and III.
- Minimum Passing Score (MPS) Varies: The CFA Institute sets a unique minimum passing score for each exam cycle, using a detailed scoring process to ensure fairness.
- Computer-Based Testing Adds Flexibility: Since 2021, CFA® exams have been computer-based, allowing candidates to choose a window rather than one specific exam date.
- Preparation Is Key: Candidates who use mock exams, practice exams, and CFA® Institute resources often improve their chances of passing significantly.
- Pass Rates Published Annually: The CFA Institute releases pass rates after each exam cycle, helping candidates stay informed about trends and the difficulty of each level.
What is the CFA® Pass Rate?
The CFA® pass rate is the percentage of test-takers who pass each level of the CFA® exam. It’s no secret that the CFA® exams are notoriously challenging, and the pass rates reflect this. The CFA Institute publishes pass rates for each level after every exam cycle, measuring how many candidates passed and how each cohort performed.
Here are the 5-year average pass rates (2020 to 2024), 10-year average pass rates (from 2015 to 2024), and lifetime average pass rates (1963-2024) for each CFA® level, though they vary each year:
| Level I | Level II | Level III | Cumulative | |
|---|---|---|---|---|
| 5-Year Average Pass Rate | 37% | 45% | 47% | 42% |
| 10-Year Average Pass Rate | 40% | 45% | 52% | 44% |
| Lifetime Average Pass Rate | 41% | 46% | 55% | 45% |
These pass rates might look intimidating, especially seeing as the exams have increased in difficulty in recent years. However, they’re designed to ensure that only well-prepared candidates progress. That’s why, even though the exams increase in difficulty, the pass rates also increase.
In particular, it’s important to note that 2021 had low scores across the board (the lowest at 22%). This heavily threw off the average percentages in recent years. Some speculate the lower scores were due to COVID’s societal and educational impact. However, it’s just as possible that many of the exams were simply more difficult that year, considering February 2021 had a more normal pass rate of 44%.
Factors That Influence the CFA® Exam Pass Rates
The CFA Institute doesn’t just roll a pair of dice to decide how hard the exams would be—there’s a detailed process for determining which candidates meet the minimum passing score (MPS). Let’s take a look at a few factors that influence the pass rates for the CFA® exams.
1. Minimum Passing Score (MPS)
The CFA Institute uses the Modified Angoff Method to set the minimum passing score. A group of expert psychometricians, overseen by a board from the CFA Institute, reviews candidate performance data and exam difficulty before finalizing the MPS. This score varies for each exam level and can change based on how candidates performed and how challenging the particular exam was.
2. Difficulty Level of Each Exam
Each level of the CFA® exam gets progressively harder, even though the pass rates don’t reflect this. CFA® Level I, for instance, mostly tests basic financial concepts and has the lowest pass rate. CFA® Level III, on the other hand, focuses heavily on portfolio management and includes essay questions, which can be difficult for many test-takers.
3. Preparation and Exam Prep Resources
Since the exams are so challenging, candidates who dedicate time to study, take practice exams, and use quality prep courses like AnalystPrep or Kaplan CFA® generally perform better. Many successful candidates take mock exams and complete several practice exams to feel prepared for the actual exam cycle. Candidates who take advantage of these resources often score higher than those who don’t.
4. Exam Administration and Format
Since 2021, the CFA® exams have been administered via computer-based testing (CBT), a shift from the old paper-based format. This change may have impacted candidates and the best way to study and practice, as it requires more familiarity with on-screen question formats. Additionally, candidates now schedule their exams within an exam window of several days rather than a single exam date. This flexibility may positively impact pass rates as it allows candidates to choose a date that works best for their schedule—and, consequently, their brainpower.
How to Improve Your CFA® Exam Pass Rate
Given the low average pass rates, it’s clear that passing the CFA® exams requires solid preparation. Here are some tips to help you improve your chances of joining the ranks of CFA® charterholders.
1. Set a Target Score Above the MPS
While the exact MPS isn’t published, aiming higher is always a good approach. Setting a target score can help you stay motivated and focus on achieving a level of performance that puts you above the minimum passing score.
2. Use Mock Exams and Practice Exams
Mock exams are a must for CFA® candidates. They give you a feel for the timing, question format, and difficulty level of the actual CFA® exam. Most candidates who pass the exam report completing at least two to three full-length practice exams. These practice sessions are invaluable for helping you gauge your knowledge and pinpoint areas where you need more review.
3. Focus on Your Weaknesses
Because the CFA® exam covers a vast range of topics, it’s essential to identify and address any weak spots. Areas like ethics, quantitative methods, and portfolio management are particularly critical at all exam levels. Spend extra time on sections where you score lower on mock exams, and consider reviewing CFA Institute resources that offer detailed explanations and guidance.
4. Understand the Grading Process
Knowing how the exams are graded can be beneficial. The CFA Institute uses a mix of multiple-choice questions and essay questions (especially in Level III), and they analyze performance on these questions in detail. Familiarizing yourself with the grading criteria and focusing on high-priority topics (like ethics and portfolio management) can help you approach the exam with a strategy.
5. Take Advantage of Unlimited Access to Resources
With computer-based testing, you have some flexibility in accessing online study materials, video lectures, and forums where other CFA® candidates share tips and insights. Many candidates report that using resources like flashcards, interactive quizzes, and especially CFA® prep courses for Level I, Level II, and Level III can make a big difference in retaining information.
Historical CFA® Exam Pass Rates
If you’re wondering how pass rates have changed over time, here’s a quick summary:
- The past decade has seen fluctuations in pass rates, with some of the lowest pass rates reported recently.
- CFA® Level I pass rates dipped to a historical low of around 25% in 2021, possibly due to the pandemic and adjustments in exam administration.
- Historically, pass rates for Levels II and III have dropped slightly but generally remain higher than Level I.
The CFA Institute is transparent about these rates, published annually and updated after each exam cycle. Keep an eye on these published pass rates to gauge what you’ll be up against.
Conclusion: Achieving a High Score on the CFA® Exams
Passing the CFA® exams is a major hurdle you’ll need to overcome to earn your CFA® charter. However, it’s achievable with dedication, smart study strategies, and the right resources. By understanding the pass rate trends, preparing thoroughly, and using available resources like practice exams, you can maximize your chances of passing.
Practice makes perfect, and this couldn’t be more true than it is when talking about exam prep.
Check out Kaplan CFA® and AnalystPrep to see which is right for your practice and studying.
Remember, the CFA® program is designed to be rigorous, but thousands of candidates do pass each year and go on to become charterholders. Focus on your target score, stay committed, and approach each level of the CFA® exam as a step closer to your goal. Good luck!
FAQs
In recent years, the CFA® Level I average pass rate ranged from 25% to 45%, making it the toughest of the three levels in terms of pass rates.
The CFA Institute Board uses the Modified Angoff Method, where a board of governors assesses exam difficulty and candidate performance to set the minimum passing scores.
Yes, each CFA® level is progressively more challenging, with Level III being the most advanced and including essay questions.
Effective CFA® exam prep involves using mock exams, focusing on weak areas, and studying CFA Institute materials to improve your pass rate.
The CFA Institute publishes exam pass rates after each exam cycle, allowing candidates to review and assess how each level performed.
Yes, there are options for paid and emergency CFA® deferrals that you can request to move your exam date back.
