How Hard are the CFA® Exams? (Levels 1, 2 and 3)

If you’ve been wondering just how tough the CFA® exams are, you’re not alone.

The Chartered Financial Analyst (CFA®) is widely respected, but earning it requires passing three rigorous exams. These exams, designed by the CFA® Institute, cover essential topics like portfolio management, quantitative methods, and corporate finance.

As one candidate put it, “The test is straightforward. The difficult part is putting in the hours and staying disciplined.”

The big question is: how hard is the CFA®?

Let’s break down the details, what other CFA® candidates have to say, and how major changes will impact how candidates prepare and succeed.

Key Takeaways

• Three Levels of the CFA® Program: This program covers equity investments, corporate finance, and wealth planning, with increasing difficulty at each level.
• Practical Skills Modules: Starting in 2024, modules like Financial Modeling and Python Programming help candidates apply theory to real-world scenarios.
• Exam Structure: Six-hour exams divided into two sessions; preparation requires mock exams, study guides, and time management.
• Low Pass Rates: Only 40-50% pass on their first attempt, with rigorous preparation needed despite upcoming study efficiency improvements.
• Specialization at Level III: Beginning in 2025, candidates can choose between Portfolio Management, Private Wealth, and Private Markets pathways.

How Hard Is the CFA®? What Candidates Have to Say

One common question among finance professionals is: How does the CFA® compare to the CFP or CPA? A popular Reddit thread tackled this exact topic, with candidates and charterholders weighing in on the difficulty of the CFA® compared to other financial credentials. Many agreed that the CFA® is a different level of challenge, especially when compared to the CFP and CPA, with much of the difficulty coming from the sheer amount of material covered and the rigorous exam structure.

Here’s what some candidates had to say about the difficulty of the CFA® compared to other exams:

• “Between the 3, CFA is far and away the hardest. CFP is the easiest of all 3. Compared to Level I, BEC and AUD for the CPA were cakewalks.” – u/strugan214
• “CPA has a clear path; you can digest one chunk at a time. The CFA throws the kitchen sink at you. It’s more about managing the vast content.” – u/fancczf
• “Level I is on par with one CPA section, but Level II is like taking all four CPA sections at once.” – u/Acro-LovingMotoRacer

While the CFP covers personal financial planning and the CPA focuses on accounting and auditing, the CFA® is a generalist financial designation that dives deep into investment analysis, quantitative methods, and portfolio management. The exams demand not only memorization but also a strong understanding of concepts and their application in real-world scenarios.

For those juggling jobs, family, and other responsibilities, the CFA® can feel like an overwhelming marathon of preparation. As one user put it, “The hardest part is dedicating enough time to prepare. The syllabus is huge and takes forever to go through and learn properly.”

What to Expect in the CFA® Program

The CFA® exams get progressively harder as you move through the levels, with each one building on the knowledge from the last. Here’s what you can expect at each stage, updated for the 2024-2025 changes:

• CFA® Level I: This exam introduces you to the basics of finance, but don’t let that fool you—it’s still a challenge. Topics include ethics, quantitative methods, and financial reporting. A new Financial Modeling module will be added in 2024 to provide practical skills, although it won’t be graded. You’ll also tackle Python programming fundamentals, which will help you become comfortable with the modern tools used in the finance world. The test is split into two three-hour sessions with 180 multiple-choice questions.

• CFA® Level II: In this level, you’ll apply what you’ve learned to real-world financial scenarios. The focus shifts to more complex topics like equity investments, asset management, and fixed income. Starting in 2024, you’ll also take an Analyst Skills module and have the option to study Python, Data Science, and Artificial Intelligence. Like Level I, the exam includes item-set questions, which require you to analyze and apply concepts rather than just recall facts. This exam requires deeper analysis, making it one of the trickiest steps in the journey to becoming a CFA® charterholder.

• CFA® Level III: This is the final and most challenging level, where you’ll synthesize everything from Levels I and II. In 2025, the CFA® Institute is adding three job-role-focused pathways: Portfolio Management, Private Wealth, and Private Markets. Each pathway will include a mix of constructed response (essay) questions and case studies, which test not only your knowledge but also how well you can communicate complex financial strategies. The morning session of the CFA® Level III exam focuses on essays, while the afternoon tackles item sets. With the added flexibility of specialization, Level III candidates can now tailor their studies more closely to their future career path.

Why the CFA® Exams Are So Challenging

There’s no question that the CFA® exams are some of the toughest in the financial industry. Here’s why:

• Vast Content: The amount of material you need to cover is huge, including corporate finance, alternative investments, and quantitative methods. The good news? Starting in 2024, the CFA® Institute is trimming the volume of study materials to around 300 hours per level. This will help streamline your preparation, but the exams will remain rigorous.
• Time Commitment: Most candidates invest about 300 hours of study time per level, and it often takes multiple years to pass all three exams.
• Low Pass Rates: With pass rates hovering around 40-50%, it’s clear that these exams demand thorough preparation. Starting in 2025, digital badging will give candidates credit for passing Levels I and II, which could help with job searches even before you complete all three levels.
• Math-Heavy Sections: Quantitative methods, financial reporting, and corporate finance all require a solid understanding of math and statistics. These sections can be particularly difficult for candidates without a strong background in math.
• Exam Format: Each exam is six hours long and includes a mix of multiple-choice questions, item sets, and essay responses. It’s not just about knowing the material—you’ll need to manage your time and stay focused through long, complex questions.

Conclusion

The CFA® program is definitely challenging, but with the right preparation, earning a minimum passing score is possible. While each exam builds in difficulty, the new changes coming in 2025 will offer candidates more support through additional practical skills, reduced study volume, and tailored career pathways. Passing the CFA® exams requires dedication, focus, and hard work, but earning your CFA® charter opens doors to some of the top roles in investment analysis, asset management, and portfolio management. If you’re willing to put in the effort, the CFA® route can be your ticket to a long and rewarding career in finance.

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