🎓 Katalyst Prep
CFA Exam Pass Rates 2025: Level 1, 2, 3 Statistics & Historical Trends
CFA Guide

CFA Exam Pass Rates 2025: Level 1, 2, 3 Statistics & Historical Trends

The CFA (Chartered Financial Analyst) exam is often called the “world’s hardest exam” in finance. With pass rates hovering between 43-50% across all three levels, understanding your odds is essential for proper planning.

Here’s everything you need to know about CFA pass rates in 2025, including historical trends, first-time vs repeat candidate data, and strategies to beat the odds.

2025 CFA Exam Pass Rates by Level

Based on the latest data from CFA Institute:

Exam WindowLevel 1Level 2Level 3
August 202543%44%50%
May 202545%54%
February 202545%49%
November 202443%39%
10-Year Averages (CFA Institute Official)
  • Level 1: 41% average pass rate
  • Level 2: 45% average pass rate
  • Level 3: 52% average pass rate

These averages include the post-pandemic recovery period when pass rates were historically low.

First-Time vs Deferred Candidates

CFA Institute releases data comparing first-time test takers to deferred candidates (those who postponed from a previous window). The difference is striking:

Exam WindowFirst-TimeDeferred
Aug 2025 Level 359%33%
Aug 2025 Level 252%28%
Aug 2025 Level 150%29%
May 2025 Level 260%35%
May 2025 Level 152%28%
Feb 2025 Level 356%30%
Feb 2025 Level 152%30%
The Deferral Penalty

Deferred candidates consistently pass at rates 20-25 percentage points lower than first-time candidates. This suggests that momentum matters—if you’re prepared, don’t delay.

Historical Pass Rates Since 2014

YearPass Rate RangeNotable Events
202543-45%Recovery to pre-pandemic norms
202443-53%Continued normalization
202335-42%Gradual improvement
202235-40%Still recovering from pandemic lows
202122-27%Historic lows (pandemic disruption)
202042-49%Dec 2020 saw pandemic bump to 49%
201941-42%Pre-pandemic normal
2015-201840-45%Stable paper-based exam era
YearPass Rate RangeNotable Events
202539-54%May 2025 spike to 54%
202439-67%May 2024 unusually high at 67%
202344-52%Recovery phase
202240-46%Post-pandemic struggles
202129-40%Record lows
202052-55%Pandemic bump for those who sat
201944-46%Pre-pandemic baseline
YearPass Rate RangeNotable Events
202549-50%Stabilized around 50%
202447-55%Improvement continues
202347-52%Near long-term average
202247-49%Faster recovery than L1/L2
202139-42%Lowest ever recorded
202052-56%Consistent with historical norms
201952-56%Long-term average range

Why Are CFA Pass Rates So Low?

Several factors contribute to the challenging pass rates:

1. Volume of Material

  • Level 1: ~3,000 pages of curriculum
  • Level 2: ~3,500 pages with deeper analysis
  • Level 3: ~2,800 pages plus essay components
  • CFA Institute recommends 300+ hours of study per level

2. Self-Selection Fallacy

Unlike professional license exams, the CFA is voluntary. Many candidates underestimate the commitment:

  • Only 20% of enrolled candidates actually complete all three levels
  • High dropout rates between levels inflate the “serious candidate” pool

3. Post-Pandemic Effects

The 2021 pass rates (22% for Level 1) were historic lows due to:

  • Transition to computer-based testing
  • Study disruption during lockdowns
  • Test center closures creating rushed preparation
  • Pass rates have since recovered but remain below pre-2020 averages

4. The Minimum Passing Score (MPS)

CFA Institute sets the MPS using a modified Angoff method, calibrated to a “minimally competent candidate.” The MPS is not a fixed percentage and varies by exam administration.

MPS Estimates

Based on candidate analysis, the MPS typically falls between 63-67% correct answers, varying by question difficulty each administration.

How Hard Is the CFA Exam?

The UK NARIC (National Academic Recognition Information Centre) benchmarked CFA levels against UK educational qualifications:

CFA LevelUK Qualification EquivalentUS Comparison
Level 1Diploma of Higher Education (RQF Level 5)~Associate’s degree level
Level 2Bachelor’s Degree (RQF Level 6)~Bachelor’s in Finance
Level 3Master’s Degree (RQF Level 7)~Master’s in Finance

This means completing all three CFA levels is roughly equivalent to a Master’s degree in finance in terms of difficulty and depth.

CFA Exam Format by Level

Understanding what each level tests helps explain the pass rate differences:

LevelFormatQuestionsDuration
Level 1Multiple choice only180 questions (2 sessions)4.5 hours
Level 2Vignette-supported MCQItem sets with 88 questions4.5 hours
Level 3Essay + Item setsWritten + MCQ with specialty pathways4.5 hours

Level 1 (Lowest Pass Rate ~41%)

  • Focus: Knowledge and comprehension
  • Why it’s hardest: Broadest curriculum, most candidates underprepared
  • Tip: Strong foundation matters—weak Level 1 performance predicts struggles later

Level 2 (Mid-tier ~45%)

  • Focus: Application and analysis
  • Why it’s challenging: Vignettes require reading comprehension + technical skills
  • Tip: Practice with item sets, not standalone questions

Level 3 (Highest Pass Rate ~52%)

  • Focus: Synthesis and evaluation
  • Why higher pass rate: Natural selection—only those who passed L1+L2 remain
  • Tip: Essay grading is standardized but practice writing concise answers

Pass Rates by Study Method

While CFA Institute doesn’t release official data by prep method, Kaplan Schweser surveys indicate:

Study ApproachEstimated Pass Rate
Premium prep course + structured schedule55-65%
Self-study with prep materials40-50%
CFA curriculum only (no third-party)35-45%
Minimal preparationUnder 20%
The Prep Provider Advantage

Candidates using structured prep courses from Kaplan Schweser, Mark Meldrum, or Salt Solutions report higher pass rates. The premium pricing often pays off through reduced retake costs.

What Score Do You Need to Pass?

Unlike many standardized tests, CFA Institute doesn’t publish an exact passing score. Here’s what we know:

  • No fixed percentage: The MPS varies by exam administration
  • Scaled scoring: Your result is “Pass” or “Did Not Pass” with topic-level feedback
  • Estimated target: Aim for 70%+ on practice exams to have a comfortable margin
  • Score report: Shows performance by topic area relative to the MPS

How to Beat the Pass Rates

Based on successful candidates:

LevelCFA Institute RecommendationActual Passing Candidate Average
Level 1300 hours280-350 hours
Level 2300 hours320-400 hours
Level 3300 hours300-350 hours

2. Key Success Strategies

  1. Start Early: Begin 6 months before your exam window
  2. Use Quality Materials: Invest in Kaplan Schweser or Mark Meldrum
  3. Practice Relentlessly: Complete 2,000+ practice questions per level
  4. Mock Exams: Take at least 3-4 full-length mocks under timed conditions
  5. Target 70%+: On mock exams before scheduling your real exam
  6. Don’t Defer: First-time candidates pass at 20+ points higher rates

3. Exam Window Strategy

WindowBest For
FebruaryLevel 1 and Level 3 only; good for fresh start after year-end
MayAll levels; allows spring preparation
AugustAll levels; summer study time
NovemberLevel 1 and Level 2 only; year-end push

Cost of Failure

Understanding the financial stakes helps motivate preparation:

ItemCost
First-time exam (early registration)$1,140
Retake exam (standard registration)$1,490
Prep course (quality provider)$400-$1,500
Total cost to fail once and retake$2,600-$3,000+

Passing the first time saves both money and months of additional study time.

Best CFA Prep Courses

To maximize your chances of passing:

  1. Kaplan Schweser - Industry standard, 35+ years experience, PassProtection guarantee
  2. Salt Solutions - Interactive learning, modern platform
  3. AnalystPrep - Best value, comprehensive question bank

Key Takeaways

  • Current pass rates: Level 1 (43-45%), Level 2 (44-54%), Level 3 (49-50%)
  • 10-year averages: L1 (41%), L2 (45%), L3 (52%)
  • First-time advantage: 20-25 points higher pass rates than deferred candidates
  • Total curriculum: 300+ hours study time recommended per level
  • Target score: Aim for 70%+ on practice exams
  • Prep courses help: 55-65% pass rates vs 35-45% self-study

Frequently Asked Questions

What is the CFA exam pass rate?

CFA pass rates vary by level. As of 2025: Level 1 averages 43-45%, Level 2 averages 44-54%, and Level 3 averages 49-50%. The 10-year historical averages are 41% for Level 1, 45% for Level 2, and 52% for Level 3.

What score do you need to pass the CFA exam?

CFA Institute doesn't publish exact passing scores. The Minimum Passing Score (MPS) varies by exam administration and is determined using a modified Angoff method. Based on candidate analysis, you typically need around 63-67% correct answers to pass, though this varies. Your result is simply 'Pass' or 'Did Not Pass.'

Which CFA level is the hardest?

By pass rate, Level 1 is the hardest with a 41% 10-year average pass rate. However, this is partly because Level 1 has the most underprepared candidates. Many charterholders consider Level 2 the most intellectually challenging due to its depth of analysis, while Level 3's essay component is uniquely demanding.

How many people pass the CFA exam on their first try?

First-time candidates pass at significantly higher rates than deferred candidates—around 50-60% for first-timers vs 28-35% for those who deferred. However, passing all three levels without any failures is uncommon, with only about 20% of candidates achieving this.

Why is the CFA pass rate so low?

CFA pass rates are low due to: 1) Enormous curriculum (300+ hours study per level), 2) Many candidates underestimate the commitment, 3) Self-selection—it's voluntary unlike license exams, 4) The MPS is set based on 'minimal competency' not a fixed percentage. Post-pandemic disruption also temporarily lowered rates.

How long does it take to become a CFA?

On average, it takes 4 years to complete the CFA Program. You must pass all three levels (minimum 2.5 years due to exam scheduling), complete 4,000 hours of relevant work experience, and become a CFA Institute member. The fastest possible path is about 2.5 years.

Is the CFA harder than an MBA?

They're different. The CFA is narrowly focused on investment management and requires passing three rigorous exams. An MBA is broader business education without a single exam. The UK NARIC benchmarks the complete CFA Program as equivalent to a Master's degree in difficulty. Many professionals pursue both.

What happens if I fail a CFA exam?

If you fail, you receive a score report showing your performance by topic area. You can register for the next available exam window (subject to scheduling). There's no limit on attempts, but you must wait until the next testing window. Many candidates who fail with scores near the MPS pass on their second attempt with focused review.

Are CFA pass rates getting lower?

Pass rates dropped dramatically in 2021 (Level 1 hit a record low of 22%) due to pandemic disruption and the transition to computer-based testing. They have since recovered to near pre-pandemic levels (43-45% for Level 1 in 2025). CFA Institute expects rates to stabilize around historical averages.

Do I need a prep course to pass the CFA exam?

While not required, prep courses significantly improve pass rates. Candidates using quality providers like Kaplan Schweser or Mark Meldrum pass at rates of 55-65% compared to 35-45% for self-study with curriculum only. The structure, practice questions, and mock exams provide substantial value.