CFA® Exam Pass Rates, Scores, and Grading
Before diving into the CFA exam, it's crucial to understand the pass rates and scoring. This knowledge helps you gauge the exam's difficulty and plan your preparation effectively. Familiarizing yourself with historical pass rates allows you to set realistic goals and track your progress. It's not just about passing; it's also about learning from the experiences of those who have taken the exam before you.
CFA Exam Pass Rates Across Each Level
CFA exam pass rates vary across levels, reflecting the program's reputation for rigor and depth. Level I 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 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 Level 1 exam, which has the lowest pass rate of the three levels. For the February 2024 window, 44% of candidates passed the exam, 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% |
In theory, CFAI understands that this level demands a deep and broad comprehension of the subject matter, with minimal carry-over knowledge from college. Therefore, it filters out candidates who need more expertise.
CFA Level 2 Exam Pass Rates
Level 2 of the CFA exam is considered the toughest of the three levels, with an average pass rate of about 46.6% in the 2023 window. 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 candidates to analyze and apply their 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% |
Despite the continued use of MCQs, 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 candidates to adopt a nuanced approach to tackle the exam successfully.
CFA Level 3 Exam Pass Rates
The CFA exam's third and final level boasts the highest success rate among the three levels. Over the past decade, approximately 52% of Level 3 test-takers have passed the exam on average. The pass rate for 2023 saw a significant increase, rising to 47.5% from 42% in 2021. The most recent February 2024 test window reported an even higher pass rate of 49%.
| 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* | 49% |
The CFA Level 3 exam 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.
How Does the CFA Exam’s Grading System Work?
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 the performance of the candidates taking the exam at that time and the exam's 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" grade all exams and review each other's work 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, the exams are assigned a minimum passing score (MPS).
Besides analyzing the CFA exam grading system and how it works, it is also essential to clarify what 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.
What is a 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. 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 are essential. This tool gives you insight into areas for improvement and can assess your performance if you attempt to retake the CFA exam.
Why doesn't CFAI publish the minimum passing score for each level?
CFAI uses standard setting, a statistical process involving CFA charterholders who review each question to determine the minimum passing score. This score varies with each exam administration based on difficulty and candidate performance. Not publishing the MPS helps maintain the exam's integrity and consistency.
What is the reason behind the low pass rates of the CFA exam?
The CFA exam is a rigorous and challenging exam that requires a high level of preparation and understanding of complex financial concepts. The low pass rates of the CFA exam can be attributed to several factors, including:
- Difficulty Level: 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 Commitment: The CFA exam has three levels, each requiring substantial preparation time. Candidates must devote hundreds of hours of study to each level to master the material and pass the exam.
- Comprehensive Curriculum: The CFA curriculum is extensive and covers many topics, including theoretical concepts and practical applications. This breadth of coverage requires significant preparation, and candidates must be well-versed in all areas to succeed.
- Limited Number of Attempts: The CFA exam has limited attempts, with candidates only able to retake the exam once per year. This means that candidates must put in significant effort and preparation to pass the exam on their first or second attempt.
Overall, the low pass rates of the CFA exam can be attributed to its high difficulty level, extensive curriculum, significant time commitment required for preparation, and limited number of attempts. Candidates willing to invest the necessary time and effort can improve their chances of passing by using high-quality study materials and practice exams, seeking guidance from experienced professionals, and developing a comprehensive study plan.
Maximizing Your CFA Exam Score: Make It Possible with UWorld
In addition to the nerve-racking nature of the CFA exam, the uncertainty surrounding the MPS adds to the challenge. So, how can you increase your chances of passing? The answer is simple: confidence and success come from proper preparation. The difference between passing and failing often lies in the quality of your study plan and prep materials.
Practicing with a world-class, comprehensive online learning platform is critical to achieving better results. Even candidates with advanced finance degrees are only specialists in some topics covered, leading to knowledge gaps that can be filled through self-study and repetition. Detailed explanations for CFA exam practice problems are invaluable for quickly understanding challenging concepts. While the curriculum is extensive, its principles are understandable, with adequate study time, active engagement, and high levels of practice and review, especially right before the exam.
UWorld's team of professionals includes CFA charterholders with extensive experience in teaching, creating CFA-specific content, and financial training. Some team members even have experience developing the CFA exam itself. By choosing UWorld, you can benefit from the knowledge and expertise of these professionals as you work to understand the CFA exam's expectations and develop a successful study plan.