Before taking the CFA Exam, you will want to understand how the test is scored and historical pass rates to help you gauge how to plan your preparation effectively. Familiarizing yourself with pass rates allows you to set realistic goals and track your progress.
CFA Exam Pass Rates
Pass rates vary across the exam’s 3 levels, reflecting the CFA Program's reputation for rigor and depth. Level 1 typically has pass rates in the low 40s to high 50s, with Level 2 often lower and Level 3 slightly higher. These rates are influenced by factors such as each’s exam difficulty, candidates' preparation levels, and periodic updates to the curriculum.
CFA Institute (CFAI) is committed to maintaining high standards, so you are advised to start your preparation early, engage in thorough practice, and stay informed about curriculum changes to maximize your chances of success in this demanding financial credentialing program.
CFA Level 1 Exam Pass Rates
More candidates take the CFA Level 1 Exam, which has the lowest pass rate of the 3 levels. For the 2024 level 1 exam , an average of 44.6% of candidates passed, which is better than the average pass rate for 2023.
| Year | CFA Level 1 Average Pass Rate |
|---|---|
| 2013 | 40.5% |
| 2014 | 43% |
| 2015 | 42.5% |
| 2016 | 43% |
| 2017 | 43% |
| 2018 | 44% |
| 2019 | 41.5% |
| 2020 | 49% |
| 2021 | 29% |
| 2022 | 36.75% |
| 2023 | 37.25% |
| 2024 | 44.6% |
CFA Level 2 Exam Pass Rates
The CFA Level 2 Exam is considered the toughest of the 3 levels, with an average pass rate of 53% in 2024. Level 2 sees a higher pass rate than Level 1, though, reflecting the achievements of a more discerning group of candidates.
The exam covers a more extensive and complex curriculum, including many topics and a deeper level of knowledge. While Level 1 consists primarily of multiple-choice questions (MCQs), Level 2 involves item-set questions that require more analytical and critical thinking skills. These questions present real-world scenarios and require you to analyze and apply your knowledge to solve problems.
| Year | CFA Level 2 Average Pass Rate |
|---|---|
| 2013 | 43% |
| 2014 | 46% |
| 2015 | 46% |
| 2016 | 46% |
| 2017 | 47% |
| 2018 | 45% |
| 2019 | 44% |
| 2020 | 55% |
| 2021 | 41% |
| 2022 | 42.6% |
| 2023 | 46.6% |
| 2024 | 53% |
Level 2 introduces a vignette-style format unfamiliar to Level 1 candidates, adding an extra layer of complexity. This shift in question presentation contributes to the perceived difficulty of Level 2, requiring you to adopt a nuanced approach to tackle the exam successfully.
CFA Level 3 Exam Pass Rates
The CFA Level 3 Exam has the highest success rate among the levels. Over the past decade, the average pass rate for Level 3 test-takers has been 52%. In 2024, the pass rate saw a notable increase, rising to 48.5%, compared to 2023.
| Year | CFA Level 3 Average Pass Rate |
|---|---|
| 2013 | 49% |
| 2014 | 54% |
| 2015 | 53% |
| 2016 | 54% |
| 2017 | 54% |
| 2018 | 56% |
| 2019 | 56% |
| 2020 | 56% |
| 2021 | 42% |
| 2022 | 49% |
| 2023 | 47.5% |
| 2024 | 48.5% |
Level 3 introduces an essay format, adding another complexity layer. Level 3 candidates should devote sufficient time to comprehending the exam format's nuances and grading criteria.
CFA Exam Grading System
To determine passing scores for each level of the CFA Exam, CFAI uses the modified Angoff method.
This process involves a panel of subject matter experts familiar with the exam's content and difficulty. These experts estimate the minimum score a candidate should receive to demonstrate the necessary knowledge and skills. The minimum score is then used to set the passing score for the exam, which may vary from one administration to the next depending on candidate performance and exam difficulty.
MCQs are machine-graded, with approximately 10% re-graded by hand to ensure accuracy. Essays are graded by different individuals to ensure fairness, and any discrepancies are resolved by a third grader. A rubric provided by CFAI helps maintain consistency in grading.
Charterholders at various levels and a "grader of graders" review all exams to ensure consistency during the first grading week. The middle 50% of exam scores are re-graded during the second week, and if significant differences in grading are found, the exams are graded a third time. Finally, exams are assigned a minimum passing score (MPS).
What do each of the scoring components stand for? A black dotted line indicates the MPS; a thick, dark blue line shows your score. If the line is above the MPS, you passed. If it is below the MPS, you did not pass.
Minimum Passing Score
MPS is the lowest possible score you can obtain while passing the CFA Exam. CFAI does not publish the minimum passing scores to maintain the exam's integrity and consistency. This is separate from the CFA Exam pass rates, published annually, and represents the percentage of candidates who passed a specific exam.
Your results and understanding of your CFA exam score report give you insight into areas for improvement and can assess your performance if you need to retake one or all levels of the CFA Exam.
Reasons for Low Pass Rates
The CFA Exam is rigorous and challenging and requires a high level of preparation and understanding of complex financial concepts. Low pass rates can be attributed to:
- Difficulty Levels: The CFA Exam is among the world's most challenging financial certification exams. Preparing for it requires significant time, effort, and dedication. The exam covers various topics, including accounting, economics, ethics, financial analysis, portfolio management, and quantitative methods.
- Time Commitments: The CFA Exam has 3 levels, each requiring substantial preparation time. You must devote hundreds of hours of study to each level to master the material and pass the exam.
- Comprehensive Curriculums: The CFA Curriculum is extensive and covers many topics, including theoretical concepts and practical applications. This breadth of coverage requires significant preparation, and you must be well-versed in all areas to succeed.
- Limited Number of Attempts: You can only retake the exam once per year, so you must put in significant effort and preparation to pass the exam on your first attempt. That’s where high-quality study materials can help.
How UWorld Can Help You Pass the CFA Exam
Practicing with world-class, comprehensive resources created by CFA experts can help you achieve better results on your first attempt to pass each CFA Exam level.
Our team of professionals includes CFA charterholders with extensive experience in teaching, creating CFA study content, and financial training. You can benefit from their knowledge with quality study resources that include:
Frequently Asked Questions (FAQs)
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