The CFA® Exams
Understanding the passing rates and scores of the CFA exam can be helpful in various ways. It provides an idea about the exam's difficulty level and required preparation to pass it. Historical pass rates assist in setting realistic goals and tracking progress. Analyzing scores of successful candidates gives insights into question patterns and the level of mastery required.
CFA Exam Pass Rates Across Each Level
Understanding the pass rates and scores for the CFA exam can help you in several ways. Firstly, it can give you a sense of the difficulty of the exam and the level of preparation required to pass it. Knowing the historical pass rates can also help you set realistic goals for yourself and track your progress as you study. Additionally, analyzing the scores of successful candidates can give you insights into the types of questions that tend to appear on the exam and the level of mastery required to answer them correctly.
The exam pass rates for all levels have changed in recent years, partly due to the pandemic and partly due to the introduction of computer-based testing.
CFA Level 1 Exam Pass Rates
The Level 1 exam is taken by more candidates and has the lowest pass rate of the three levels: Recently, only 38% passed the CFA Level 1 exam for the 2023 February test window.
| 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* | 38.5% |
* February & May windows only
In theory, the CFA Institute (CFAI) knows that this level requires a deep and broad understanding of the subject matter, with very little carry-over knowledge from college. It thus filters out the candidates without such requisite knowledge.
CFA Level 2 Exam Pass Rates
Level 2 of the CFA exam is widely considered the toughest of the three levels, with only about 52% of candidates passing in 2023. Firstly, the exam covers a more extensive and complex curriculum, including more topics and a greater depth of knowledge. Secondly, while Level 1 is mostly multiple-choice questions, Level 2 involves item set questions that require more analytical and critical thinking skills. These questions present a real-world scenario and require the candidate to analyze and apply the knowledge learned to solve the problem. Lastly, the Level 2 exam has a lower pass rate compared to Level 1, with historical pass rates averaging around 40-45%, making it a more challenging hurdle to clear for candidates.
| 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* | 52% |
*May window only
While Level 1 pass rates are lower, Level 2 pass rates reflect the scores of a more astute set of candidates. The question format is still multiple-choice questions (MCQs), but in a vignette style that candidates have not yet seen, thus making Level 2 comparatively tricky.
CFA Level 3 Exam Pass Rates
The CFA exam's third and final level has the highest success rate of the three levels. On average, over the past 10 years, approximately 52% of Level 3 test-takers passed the exam. While the pass rate percentage for the May 2022 window saw a jump of 8% to 49% from 2021’s 41% rate, it was a percent lesser for August 2022 (48%).
| 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* | 48% |
*February window only
The CFA Level 3 exam introduces an essay format, which adds another layer of complexity to the exam. Level 3 candidates should devote sufficient time to comprehending the nuances of and grading criteria for this exam format.
How Does the CFA Exam’s Grading System Work?
To determine passing scores for each level of the CFA exam, the CFAI uses a method known as the modified Angoff method.
- This process involves a panel of subject matter experts who are familiar with the content and difficulty of the exam.
- These experts estimate the minimum score that a candidate should receive in order to demonstrate the necessary level of 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 group of candidates taking the exam at that time and the exam's difficulty.
Multiple-choice questions (MCQs) on all three levels of the CFA exam are machine-graded, with about 10% of exams being re-graded by hand to check for inconsistencies and ensure accuracy. During the grading period, the clarity and validity of multiple-choice questions may be reevaluated based on results and complaints from the testing period. Any questions found to be unclear or invalid will be credited towards a candidate's score.
Essays are also graded a second time by a different person to ensure fairness. If the first and second scores for these essays differ, the essay will be graded a third time. During the official evaluation, CFA exam graders are divided into groups and use a rubric provided by the CFAI to grade questions. Different levels of charterholders and a "grader of graders" grade all exams and review each other's work to maintain consistency during the first week of grading. The middle 50% of exam scores are graded again during the second week, and if there are significant differences in grading, the exams are graded a third time. Finally, the exams are given a MPS (minimum passing score).
Apart from analyzing the CFA exam grading system and its working, having clarity on what the scoring components stand for is also important. 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)?
The Minimum Passing Score (MPS) is the lowest possible score a candidate can obtain while still passing the CFA exam. The CFAI does not publish the minimum passing scores. This is not to be confused with the CFA exam pass rates, which are published annually and represent the percentage of candidates who passed a specific exam.
| Testing Windows | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Dec 2020 | 65% | 65% | 56% |
| Feb 2021 | 72% | Not available | Not available |
| March 2021 | 72% | Not available | Not available |
| April 2021 | 72% | Not available | Not available |
| May 2021 | 74% | 66.50% | 59% |
| July 2021 | 73% | Not available | Not available |
| Aug 2021 | 71% | 70% | 55% |
| Nov 2021 | 72% | 66.50% | 58% |
| Feb 2022 | 70% | 71% | Not available |
| May 2022 | 38% | Not available | 49% |
| August 2022 | 37% | 40% | 48% |
| November 2022 | 67% | Not available | Not available |
As much as results are important, it is equally important to be able to understand the Whys and Hows of the grade that you receive. Apart from helping you analyze your grade, understanding your CFA exam score report will also give you an idea of areas of improvement and can assess your standing in the CFA exam, should you want to attempt the exam again.
Why doesn't the CFAI publish the minimum passing score for each level?
The CFAI does not publish the minimum passing score for each level of the CFA exam. The reason for this is that the passing score is determined through a process called standard setting, which is a statistical process that involves a panel of CFA charterholders who review each question on the exam and determine the minimum score required to pass. The passing score can vary from one exam administration to another, depending on the difficulty level of the questions and the performance of the candidates. By not publishing the minimum passing score, the CFAI aims to maintain the integrity and consistency of the exam, as well as to avoid any potential gaming of the system by candidates who might try to target a specific score rather than aiming to achieve a thorough understanding of the material.
What is the reason behind the low pass rates of the CFA exam?
The CFA (Chartered Financial Analyst) 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 known to be one of the toughest financial certification exams in the world, and it requires a significant amount of time, effort, and dedication to prepare for. The exam covers a vast range of topics, including accounting, economics, ethics, financial analysis, portfolio management, and quantitative methods.
- Time Commitment: The CFA exam consists of three levels, each of which requires a substantial amount of preparation time. Candidates need to 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 a wide range of topics, including both theoretical concepts and practical applications. This breadth of coverage requires a significant amount of preparation, and candidates must be well-versed in all areas to succeed.
- Limited Number of Attempts: The CFA exam has a limited number of attempts, with candidates only able to retake the exam once per year. This means that candidates must put in a significant amount of 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 the difficulty level of the exam, the extensive curriculum, the time commitment required for preparation, and the limited number of attempts. Candidates who are willing to put in the time and effort to prepare for the exam can increase 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
Along with the CFA charter exam's nerve-racking nature, there is uncertainty surrounding your chances of passing given that the MPS is unknown. So, what is the best method to increase your chances of passing? The answer is simple: Confidence and passing results come from proper preparation. The difference between passing and failing is in the quality of the CFA exam prep content you use and the study plan around it.
Practicing with a world-class, comprehensive online-learning platform is the key to better results. Candidates are not specialists in all topics covered, even with an advanced finance degree. As a result, each candidate has several knowledge gaps that can be filled by self-study and repetition. Reading detailed answers to CFA exam practice problems is a handy tool for swiftly grasping challenging concepts holding you back. The curriculum is extensive, yet the principles are understandable. Allow adequate time to study the curriculum thoroughly, keep involved with the content, incorporate high levels of practice, and include time to review immediately before the exam.
UWorld's team of professionals includes CFA charterholders who have extensive experience in teaching and creating content specific to the CFA exam, as well as financial training. Some members of our team even have experience in 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 expectations of the CFA exam and develop a plan to succeed.