Adding a chartered financial analyst (CFA) designation to your professional resume can enhance your credibility, increase your career prospects and potentially up your earning power. But just how much does a CFA make? Let’s take a look at the average CFA salary and break down the specifics.

SmartAsset’s Advisor Marketing Platform (AMP) offers financial advisors services like client lead generation, automated marketing and more. Learn about SmartAsset AMP today.

What Is the Average CFA Salary?

The average CFA earns an annual salary of $180,000, according to the CFA Institute. The CFA Institute issues CFA designations to financial advisors who complete the required curriculum and exams.

How much you earn as a CFA is influenced by several factors, including your level of experience, skill level, the type of firm you work for and your geographic location. Here’s how CFA salaries compare, according to top compensation websites:

According to ZipRecruiter, the average CFA salary is $88,111 annually. CFAs earn $38,500 on average at the low end and $118,000 on average at the higher end.
Salary.com puts the average CFA salary at $81,823, with a typical salary range of $62,068 to $102,016.
PayScale’s annual CFA salary is a bit higher, at $97,591 annually. That figure represents the base salary the average CFA earns and doesn’t include bonuses or profit-sharing, which can increase total pay.
The median CFA salary, according to Glassdoor, is $160,000 annually. In terms of the salary range, CFAs earn between $120,000 and $220,000 annually.

Where do CFAs make the most money? According to ZipRecruiter, CFAs pull in the highest salaries in Washington state, making $113,779 annually on average. CFAs make the least in Florida, drawing an average salary of $75,072.

For perspective, the median financial advisor salary is $99,580, according to the Bureau of Labor Statistics.

How Does a CFA Salary Break Down?

An advisor researches the average CFA salary.

As you weigh the different salary options for following the path of a CFA, it’s helpful to understand how that pay is determined. Your compensation as a CFA will typically depend on several elements, including:

Base pay/salary
Performance bonuses
Stock options
Equity
Commissions
Employee benefits, such as health insurance or a 401(k) with matching contributions

The exact makeup of your compensation package will depend on where you’re employed. All of the CFA salary numbers outlined above reflect the base pay you could earn on average.

When you factor in bonuses, profit-sharing and other forms of compensation, the average CFA salary can end up being much higher.

What Determines a CFA Salary?

How much you earn as a CFA is dependent on a range of factors. It’s helpful to understand what can influence your earnings if you’re considering obtaining a CFA designation:

Education. The type of degree you hold can impact your salary expectations. CFAs with a master’s degree or higher typically earn more than CFAs who only have a bachelor’s degree.
Experience. Entry-level CFA jobs will by nature pay less than more advanced roles. If you’re newer to the CFA career path, you may have to work your way up the salary ladder.
Location. Location matters as well, as it can determine the demand for your services. A CFA who works in a major metro area may have access to a broader range of clients, including higher-net-worth investors, which can drive higher revenues.
Sector/Role. Where you choose to apply your CFA skills in the financial services industry can make a difference in your salary. Investment management, investment banking, corporate finance and hedge funds are areas in which CFAs are in high demand.

Your CFA level also matters if you’re in the initial stages of obtaining certification. The CFA program has three exam levels: Level I, Level II and Level III. You must pass all three to obtain certification.

According to the CFA Institute, it takes the average candidate four years to complete the exams. Your employer may offer pay increases as you complete each exam level, which is a great incentive to obtain full certification.

Is Becoming a CFA Worth It?

Becoming a CFA requires an investment of time and money, as well as a commitment to completing all of the necessary coursework and exams. You might consider this path if you:

Are interested in specializing in investment management and financial analysis
Would like to move into a sector that requires advanced analytical skills
Want to build out a client base that includes high-net-worth individuals, large corporations or institutional investors

The earning potential is, of course, an important consideration. It’s certainly possible to pull in an annual salary in the $200,000 to $300,000 range as a CFA. Keep in mind, however, that a CFA path is often highly demanding.

You may consider earning other designations, instead. Some of the most popular financial advisor certifications include:

Certified Financial Planner™ (CFP®)
Chartered Financial Consultant (ChFC)
Certified Investment Management Analyst (CIMA)
Certified Public Accountant (CPA)
Chartered Life Underwriter (CLU)
Certified Funds Specialist (CFS)
Chartered Investment Counselor (CIC)

Each designation has different requirements and applications within the financial services industry. Comparing each one can help you decide if any of these credentials make sense for the career path you hope to chart.

Frequently Asked Questions

What Is a Chartered Financial Analyst?

Chartered financial analysts are financial experts who are skilled at analyzing data and conducting investment research. CFAs can work for investment banks, hedge funds, private equity firms and other companies within the financial services sector.

How Can You Become a Chartered Financial Analyst?

You’ll need to obtain a CFA designation to become a chartered financial analyst. To become a CFA charter holder you must:

Complete all three levels of the CFA exam
Satisfy work experience requirements
Apply for membership in the CFA Institute

The process to become a CFA can take anywhere from two to four years to complete for the typical student, though it may move faster or slower for some candidates.

Who Is the CFA Designation For?

The CFA designation is designed for professionals who are interested in pursuing a career in investment research and analysis. Candidates for the CFA charter include recent college graduates who are interested in the finance field, financial advisors who are looking for career advancement, and professionals from other industries who want to break into financial services.

Bottom Line

An advisor looks up CFA salary and requirements.

Salary expectations matter when searching for CFA jobs. If you’re trying to secure your first CFA role, it helps to understand what kind of base salary range you’re likely to be working with. The CFA salary ranges we’ve shared can give you a starting point to work from when it’s time to sit down and negotiate compensation with prospective employers.

Tips for Growing Your Advisory Business

New financial advisors often face challenges when it comes to attracting new clients. Establishing a digital footprint can help you increase your visibility and gain new leads for your business. Working with an advisor marketing platform can complement your efforts and connect you with your target audience. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
If you plan to pursue a CFA designation, it’s important to develop a study plan. The CFA Institute offers a full curriculum that you can use to prepare, but you may supplement this with other study materials. You may want to look into CFA exam prep courses to enhance your learning. When comparing courses, consider the format (e.g., live seminars, self-guided, etc.), the range of study materials provided, and the cost.

Photo credit: ©iStock.com/Antonio_Diaz, ©iStock.com/Extreme Media, ©iStock.com/ijeab