Are you ready to dive into the world of finance and investment? Passing the CFA exams is your key to a brighter career, but let’s face it—it is no walk in the park! Considering a syllabus that covers extensive material and low pass rates, there is something most aspirants wonder: “How tough is it to pass the CFA?” This blog explores CFA exam difficulty, passing rate trends, and what makes the program so tough. So, grab your study materials and a strong cup of coffee, and let’s navigate the twists and turns of the CFA exam together!
Read on to know more about the CFA course difficulty level.
How Difficult are the CFA Exams?
CFA exams are notorious for their difficulty. Indeed, every one of the three levels of the test is challenging in their way. Financial concepts need to not only be understood well but also applied based on the situation. Candidates need to spend hundreds of hours studying, and mastering all sorts of things-from ethics to highly complex investment strategies-. The combination of a broad curriculum with a high standard makes it really tough to pass such tests.
Things To Know about CFA Difficulty Level
1. The CFA exam is no cake-walk
The CFA exam is one of the most challenging exams in the world. However, the key to clearing this particular exam is a lot of practice and conceptual clarity. You may have heard some rumours regarding the Chartered Financial Analyst course being a comparatively easier course because the level 1 exams are easier. But the truth is, CFA exams are difficult to crack right from the start.
Passing the CFA exams is not a stroll in the park; it is more aptly in comparison to climbing a steep hill. Many candidates find it difficult to cover the entire syllabus while managing their work and other personal commitments. Low pass rates coupled with strong analytical problem-solving skills emphasize that simple dedication does not work; rather, a well-structured study plan and commitment are needed to pass the test.
These exams test your understanding of each concept and your ability to apply these concepts and solve real-world problems through them.
2. Developing a study plan will take you a long way
While practice is important when it comes to the CFA examination, making sure that your practice is going in the right direction is also equally important. Create a study plan which includes attending coaching lectures, practicing through the end of the chapter questions, and taking breaks in between to freshen up your mind.
Making a proper study plan is important to clear the CFA exam. It helps in breaking down the preparation process into something that comes within one’s reach, considering the sheer volume of material that should be covered. It also allows candidates to focus on their weak areas, revise regularly, and take practice exams to check if they are moving in the right direction. A better study plan keeps you organized and frees you from last-minute panic stress by making sure you are gradually working towards your goal.
3. The CFA institute’s learning material is quite dry
Most students who have already enrolled for the Chartered Financial Analyst course will agree that the study material provided by the institute can be quite boring. That’s why you need a coaching institute like Zell Education that offers its own learning material curated by industry experts that understand the real-world challenges and have solutions to them. Moreover, Zell also delivers its lectures through case studies and relevant examples. This makes it easier for you to prepare for your CFA exams and ace all three levels.
The CFA institute’s learning material is rather text-based and dense and not typically paralleled with practical examples to help illustrate abstract concepts. This dryness can cause burnout and disengagement, especially if one is studying for a long time. To take away this monotony, most candidates supplement the content with interactive videos, study notes, and live classes.
CFA Passing Rates
CFA passing percentages have always been low, attesting to the challenge posed by the exam. Historically, pass rates for each level are around 40-50%. Figures like these tell you how tough it is to clear these exams. Low pass rates highlight that, besides just studying, you need to master the material and learn how to apply it under exam conditions. They also remind you that the CFA designation is a conquest that only a few dedicated and disciplined people achieve. But you will pass the exam with an organized study plan and preparation with good quality material.
If you are intrigued knowing about the difficulty level of each exam, here’s a glimpse into the latest passing rate for all exams.
| Date | Level | Passing Rate |
|---|---|---|
|
August 2023 |
Level 1 |
37% |
|
November 2023 |
Level 2 |
35% |
|
February 2024 |
Level 3 |
44% |
Recent CFA Level I Exam Pass Rates
The latest pass rates reflect a recovery trend following pandemic-related dips. The CFA Institute reports a 45% pass rate for Level I in February 2025, slightly above the 10-year average of around 41%.
Recent CFA Level II Exam Pass Rates
Level II had a mixed pattern: 59% in May 2024, which then dropped to 47% in August 2024 and further to 39% in November 2024 .
Recent CFA Level III Exam Pass Rates
Level III remains consistent, with a 49% pass rate in February 2025, close to the long-term post-pandemic level and just under the 10-year average of 51%.
Why Were CFA Exam Pass Rates So Low?
Here’s what contributes to the challenging nature of the CFA exams:
- Extensive, multifaceted curriculum: Covers ethics, quantitative methods, corporate finance, portfolio management, and more.
- Rigor of question formats: Level II features complex item sets, while Level III includes demanding essay questions and portfolio case analysis.
- High competence threshold: The Minimum Passing Score (MPS) is set by charterholders through a structured review, typically around 60–70%
- Pandemic disruption: May–August 2021 saw pass rates plunge due to exam postponements and anxiety, although recent data signifies a return to typical levels.
Decoding the Hardest CFA level
The second level is sometimes considered the toughest of the three in the CFA exams. It contains harder questions that call for in-depth application of financial theories. As compared to Level I, which tests basic knowledge, Level II calls for breaking down and analysing concepts through item sets; hence, you need to know not only the ‘what’ but also the ‘how’ and ‘why’ of each issue. This is likely to make this level a great challenge for most of the candidates because of the vast material with complicated questions.
Overview of CFA Pass Rates Since 2014
Since 2014, pass rates of all three levels have fluctuated significantly. CFA level 1 pass rate ranged from 42% to 45% until 2020, but due to disruptions caused by the pandemic, the pass rate there drastically fell to 25% in May 2021. But it recovered to 46% as of May 2023.
CFA Level 2 pass rates had held steady at between 45-47% until 2019, declined to 29% in May 2021, then recovered strongly to a record 59% in February 2024.
Traditionally, CFA Level 3 pass rates were the most stable in the range of 53 and 56%, but in August 2021, this plummeted as low as 40% before recovering in May 2023 to 49%, reflecting its essay-based format that has long proved challenging.
CFA Level 1 Pass Rates vs. Candidate Volume
Level 1 of the CFA exam attracts the highest number of candidates since it is the entry point into the program. However, this stage also witnesses a significant drop-off. Despite high registration numbers, the pass rate for Level 1 typically hovers around 35% to 45%. The combination of a large candidate pool and a relatively lower level of preparedness among first-time aspirants impacts the pass rate. Many underestimate the difficulty, leading to a steep learning curve and, consequently, lower success rates compared to later levels.
CFA Level 2 Pass Rates vs. Candidate Volume
CFA Level 2 is widely considered the most challenging stage, which directly impacts both the number of candidates appearing and the pass rate. Typically, fewer candidates move on from Level 1 to Level 2, and the complexity of the exam, focused on deep application of financial theories through item sets, keeps the pass rates modest—ranging from 30% to 50% in recent years. The dip in candidate volume after Level 1 also means those who appear are more serious, but the intense depth of material still results in significant attrition.
CFA Level 3 Pass Rates vs. Candidate Volume
Level 3 witnesses the least number of candidates but arguably the most prepared group, as they’ve already cleared the earlier hurdles. The format shift toward essay-based questions (Constructed Response) also presents a new kind of challenge. Historically, the Level 3 pass rate has been slightly higher than Level 2 but still fluctuates widely based on exam cycles. Despite lower candidate volume, the pass rate around 40-50% reflects the difficulty of articulating answers clearly and concisely under pressure.
How is the CFA Passing Score Determined?
The CFA passing score, known as MPS, is determined by the CFA Institute but is very strict and objective. The CFA Institute forms a panel of charterholders immediately after each exam and assesses the difficulty level of the test conducted. As a suggestion, based on their assessment, the Institute provides the recommended minimum passing score. This passing score isn’t released in the public domain, which contributes to the uncertainty and therefore increases the nervousness for aspirants. Only those who are truly strong in understanding the material will be able to pass, thus ensuring the prestige and integrity of the CFA designation through the pass feature of the MPS.
What is the Minimum Passing Score (MPS)?
The minimum passing score by the CFA Institute is the benchmark for passing every level of an exam. The exact score is not disclosed; however, it has been a general belief that it ranges between 60-70%. This MPS is only obtained carefully to reflect the minimum level of competence that must be required for candidates to move on to the next level or earn the CFA charter. The mystery of the MPS is one thing that makes candidates stretch, as they do not know the cutoff to strategize.
How Hard is the CFA Exam: Reason Behind Low Pass Rate in CFA?
The CFA is regarded by many as one of the most challenging financial examinations due to its huge curriculum, which includes ethics, corporate finance, and portfolio management, among others. Not only is it a theoretical test, but it also includes how concepts can be applied practically. Questions are designed to challenge critical thinking and decision-making skills; for many candidates, this fact makes the exam quite grueling.
Low pass rates in CFA are majorly due to the challenging curriculum that ranges widely between topics such as ethics, corporate finance, and portfolio management. These exams require much more than just conceptual clarity; they also test the application of concepts in real-life scenarios. Since many candidates are working professionals, they find less time for in-depth studies, which again results in low pass percentages.
Things That Make the CFA Exam more Difficult
Here are certain things you should avoid while appearing for the Chartered Financial Analyst exams.
- Taking long breaks in between your exams
- Not creating a study plan of a minimum of 300 hours
- Solely relying on heavy knowledge-based CFA study materials
- Not enrolling in a coaching institute that makes the dry study material interesting for you
- Focusing only on the easy subjects and not on difficult subjects like fixed income, derivatives and portfolio management
We hope that with this detailed explanation on CFA pass rates and overall difficulty level, you’ve gotten a fair idea on how hard are CFA exams. However, with the right coaching, you’ll be able to ace the CFA papers within no time. To know more about each of the CFA course by Zell Education click on the WhatsApp icon at the side of this blog and get in touch with our experts directly.
How Hard Is CFA?
The CFA exams are extremely challenging due to a mix of factors: the breadth and depth of the syllabus, the need for both theoretical mastery and real-world application, and the rigorous exam format. Unlike other qualifications that test rote memory, the CFA exams demand analytical thinking, ethical judgment, and professional competence. Additionally, balancing preparation with work and life commitments makes the journey even tougher. However, the effort is worthwhile, as the CFA charter remains one of the most prestigious credentials in the investment world.
Study Tips: How to Increase Your Odds of Passing the CFA Exam
Boost your chances with these proven strategies:
- Invest 300+ hours per level
Aiming for at least 300 hours is standard; comprehensive preparation is key. - Stick to a structured study plan
Segment study topics, use mock exams to track progress, and reinforce weak areas early. - Prioritize diverse learning resources
Go beyond CFA Institute textbooks—opt for prep materials with interactive questions, videos, and real-world examples to avoid information fatigue. - Practice under timed, exam-like conditions
Simulate environments with both multiple-choice and case-based or essay questions to enhance exam-readiness. - Use scaled scoring feedback
Starting February 2025, CFA candidates receive scale scores against the MPS. Use these insights to refine your study strategy. - Maintain consistency and resilience
Avoid long breaks and stay disciplined—even a single refresher session per week helps retain momentum.
Conclusion
The CFA exams are indeed challenging, but they also present an entry into a noble and rewarding career in finance. With pass rates at a low and an extremely wide-ranging, complicated curriculum, these exams demand intense dedication, strategic planning, and the availability of applying theoretical concepts within practical scenarios. However, with a disciplined study routine, the right resources, and a clear focus on mastering the material, success is well within reach.
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FAQs on CFA Pass Rates
Do you need 70% to pass CFA?
The minimum pass rate is not 70% but it is based on the minimum passing score which is decided by the CFA institute and varies with each cycle of exam.
Is 3 months enough for CFA?
While some of the candidates will be able to prepare in 3 months, it is generally too tight a time frame. Most candidates require at least 4 to 6 months of dedicated study time to adequately cover the voluminous curriculum and practice sufficiently.
What is the passing probability of CFA?
The pass rate is variable by level and exam cycle, but, in general, Level 1 has a significantly lower pass rate than Levels 2 and 3. Whereas the pass rate for Level 1 has dipped as low as 25 percent, Levels 2 and 3 tend to pass at around 40-60 percent.
Can you pass CFA 1 by guessing?
Guessing may pick a few correct answers. This will, however, it will not be a strong strategy to pass the CFA Level 1. In this case, wishing well for luck will be too much because the chances of scoring high are nearly impossible.
