CFA & Financial Modelling: How They Are Related and Why You Need Both

Key Takeaways

• What is CFA financial modelling? It combines CFA investment knowledge with practical financial modelling and Excel skills.
• Is financial modelling useful with CFA? Yes, it can help candidates apply financial concepts to company analysis, forecasting and valuation.
• What are the finance careers available for CFA FM? Combining both can broaden opportunities across research, investment banking, valuation and corporate finance.

Comprehensive Summary of CFA Financial Modelling

CFA Financial Modelling

CFA financial modelling refers to using investment and valuation concepts from the CFA curriculum alongside practical modelling techniques to analyse businesses and investments.

Use of Financial Modelling

Financial modelling is used to forecast financial performance, connect financial statements, test assumptions and support investment or business decisions. 

How Does CFA Certification Support Modelling

CFA certification builds knowledge in financial statement analysis, corporate finance, equity investments and valuation, which provides important inputs for financial models.

Financial Modelling Course

Financial modelling courses generally cover Excel, three-statement modelling, forecasting, DCF valuation, scenario analysis and other practical techniques.

Careers that Combine CFA and Financial Modelling

People who have both sets of skills could aim for careers in equities research, investment banking, valuation, corporate finance, portfolio management, and other finance areas.

Why Combine CFA and Financial Modelling

Both disciplines help to link conceptual understanding of finance with application of knowledge through financial analysis.

CFA and financial modelling are complementary disciplines of finance that bring together investment knowledge with practical analysis. Whereas CFA certification helps an investor to acquire knowledge in valuation, investments and portfolio management, financial modelling helps to develop financial models in Excel.

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What Is CFA and What Does CFA Certification Cover?

The Chartered Financial Analyst designation is a globally accepted investment-related professional certificate awarded by the CFA Institute.

There are three levels to the Chartered Financial Analyst programme, and the course content becomes more analytical and applied as the candidate advances to the higher levels.

Areas covered include:

• Ethics and professional standards
• Quantitative methods
• Economics
• Financial statement analysis
• Corporate finance
• Equity investments
• Fixed income
• Derivatives and risk management
• Alternative investments
• Portfolio construction

The current curriculum of the CFA programme also consists of practical skills modules, and financial modelling is one of them, which is offered as a Level I module in 2026 and 2027.

What Is Financial Modelling and What Does It Teach?

What is financial modelling? This is the process of transforming financial data and business assumptions into the model which is used to predict future performance, conduct analyses and make decisions.

Typical financial modelling skills include:

• Advanced Excel formulas and functions
• Three-statement modelling
• Revenue and cost forecasting
• Working capital modelling
• Debt and equity schedules
• DCF valuation
• Scenario and sensitivity analysis
• Financial statement integration

For instance, the financial modelling course of the CFA Institute teaches students how to build a three-statement model, forecast revenues and expenses, and build a working capital model and debt and equity schedule.

How Are CFA and Financial Modelling Related?

The connection between CFA and financial modelling consists in the fact that CFA financial modelling brings the theory of investments and valuation to practice.

This connection can be explained from three perspectives:

• Financial statement analysis: CFA teaches how to interpret financial statements, while modelling converts historical information into forecasts.
• Valuation: CFA covers valuation concepts, while modelling allows analysts to build DCF and other valuation models.
• Investment analysis: CFA develops investment decision-making knowledge, while financial modelling helps quantify assumptions and scenarios.

Financial statement modelling forms a part of the 2026 level one curriculum of CFA Institute whereas Financial Modelling PSM offers practical Excel modelling practice.

What makes CFA and Financial Modeling different

Chartered Financial Analysis is an advanced finance course that equips students with challenging financial concepts like mergers and acquisitions, investments, market analysis, valuation, cash flows etc. However, to apply these concepts in the best way possible you’ll require some financial modelling skills. Now coming to what financial modelling is or what FMVA does, Financial modeling is a role that requires you to prepare a detailed financial plan that includes –

• Study the financial status of the organisation
• Find out the long-term goals of the company
• Charting out business opportunities
• Bringing in ways to increase profits and reduce costs

These financial skills are equally important for a CFA who wants to achieve the company’s financial targets seamlessly. That’s why Financial Modelling is considered as the stepping stone to becoming a successful CFA. And by this stepping we don’t mean that you need to have a financial modelling degree necessarily, but rather the practical skills that will help ace professional challenges in a better way.

What Are the Key Differences Between CFA and Financial Modelling?

CFA and financial modelling differ mainly in scope, learning objectives and practical application.

Therefore, the two should generally be viewed as complementary rather than identical qualifications.

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Should You Learn Financial Modelling Before, During, or After CFA?

The best moment to start depends on your background in finance, your career goals and free time available.

Learning Financial Modelling Before CFA: Advantages

It can make the candidates familiar with Excel and financial statements before they study the more advanced concepts of investments.

Advantages include:

• Better understanding of financial statements
• Stronger Excel confidence
• Early exposure to valuation
• Practical application of accounting concepts
• Better preparation for modelling-heavy roles

Pursuing Both Simultaneously: Is It Feasible?

Yes, it is possible to combine both if you manage your study schedule and are aware of different types of learning needed. CFA requires significant theoretical and exam preparation, whereas financial modelling requires practice.

Adding Financial Modelling After CFA: When Does It Make Sense?

Learning financial modelling after passing Chartered Financial Analyst is a good idea if you want to transform theoretical knowledge to practical Excel analyses.

Such a combination is especially suitable for candidates interested in positions of:

• Equity research
• Investment banking
• Valuation
• Corporate finance
• FP&A
• Investment analysis

How Does the CFA Syllabus Compare With Financial Modelling?

The curriculum of CFA is more extensive and investment-orientated, while a financial modelling curriculum is narrower and more practical.

CFA Curriculum: Level-Wise Breakdown

• Level I: Builds foundational knowledge across investment and financial analysis topics.
• Level II: Focuses more heavily on analysing and evaluating investment concepts.
• Level III: Emphasises portfolio construction, asset allocation and specialised pathways. 

Financial Modelling Curriculum: What Do You Actually Learn?

The typical curriculum of financial modelling involves learning such things as:

• Excel for finance
• Financial statement modelling
• Forecasting
• DCF valuation
• Scenario analysis
• Sensitivity analysis
• Financial dashboards
• M&A and LBO modelling in advanced programmes

For example, the current curriculum of the FMVA programme at CFI includes three-statement modelling, DCF valuation, comparable valuation and scenario analysis.

Which Topics Appear in Both Programmes?

There is meaningful overlap in:

• Financial statements
• Corporate finance
• Valuation
• Forecasting
• Equity analysis
• Investment decision-making

However, financial modelling generally provides more hands-on spreadsheet practice.

What Career Opportunities Exist After CFA and Financial Modelling?

Career opportunities depend on qualifications, experience, technical skills and the specific employer.

What Jobs Can You Get With CFA Alone?

Potential job positions are:

• Investment analyst
• Equity research analyst
• Portfolio analyst
• Risk analyst
• Investment management professional
• Wealth management professional

What Jobs Can You Get With Financial Modelling Skills?

Financial modelling can support careers such as:

• Financial analyst
• Valuation analyst
• FP&A analyst
• Investment banking analyst
• Corporate finance analyst
• Financial modelling analyst

Which Roles Prefer Candidates With Both?

Jobs that involve investment analysis and company modelling will favour you for having both skill sets, such as:

• Equity research
• Investment banking
• Private equity
• Valuation
• Corporate development
• Portfolio analysis

What Are Salary Benchmarks in India for CFA and Financial Modelling Professionals?

The salaries depend greatly on your experience, your employer, the city and your job function, and therefore, you should use these figures as market benchmarks rather than guaranteed salaries with CFA.

The current benchmark average base salary for a financial analyst in India, according to Glassdoor, is about ₹5 lakh per year, with a range of ₹4 lakh-₹9 lakh per year. For financial modelling analysts, it reports an average base salary of about ₹4 lakh per year with a base salary range of ₹3 lakh-₹5 lakh.

However, as seen from the present job postings, there are few changes. For example, the present job posting for financial modelling jobs is from ₹4 lakh to ₹7 lakh and ₹5 lakh-₹8 lakh per annum.

Is FMVA the Same as CFA Financial Modelling?

No, these are different programmes and serve different purposes.

While FMVA from Corporate Finance Institute is aimed at financial modelling and valuation skills, CFA covers a broad range of investment knowledge.

The current FMVA program consists of 44 total courses out of which 18 are required courses and cover areas like three-statement modelling, DCF valuation, forecasting and Excel. 

Therefore:

• CFA: broader investment and portfolio-focused qualification.
• FMVA: specialised financial modelling and valuation certification.
• CFA + modelling: combination of investment knowledge and practical technical skills.

Why Does Combining CFA and Financial Modelling Give You an Edge?

Combining both can create a stronger connection between financial knowledge and practical execution.

The CFA Institute itself describes financial modelling as relevant to investment banking, asset management, equity research, private equity, corporate finance and portfolio management. 

Key benefits include:

• Better understanding of company financials
• Stronger Excel and modelling ability
• More practical valuation skills
• Ability to test investment assumptions
• Broader finance career options
• Stronger ability to communicate quantitative analysis

Summary

CFA certification and financial modelling are two different things that work differently. However, these qualifications can complement one another as well. The purpose of CFA is to develop the foundations in investments, valuations, financial analysis, and portfolio management. In turn, financial modelling is all about developing the skills required to create models based on financial data.

In case a candidate wants to gain investment analysis skills, one needs to learn what is CFA. CFA will be more relevant for their career. For those who aim to learn practical Excel modelling, the right choice will be financial modelling. Candidates targeting roles that require both investment judgement and hands-on analysis can consider developing both skill sets based on their career objectives. 

FAQs on CFA and Financial Modelling

Is Financial Modelling Included in the CFA Curriculum?

Yes, the current CFA Institute programme offers financial modelling as a Level I practical skills module. Financial statement modelling is covered in the CFA programme as well.

Which Is Better: CFA or Financial Modelling?

These two qualify people differently. CFA is meant to give a broader knowledge of investing. Financial modelling is about developing practical skills to create financial models.

Can I Do CFA and Financial Modelling at the Same Time?

Yes, you can combine CFA and financial modelling study programmes if you have enough time to prepare for CFA exams and practise Excel simultaneously.

Does the CFA Exam Test Financial Modelling Skills?

The CFA programme contains some information on modelling, but the Practical Skills Module Financial Modelling is developed specifically for developing such skills.

What Excel Skills Do I Need for CFA?

It will be good if you are familiar with basic Excel skills, but advanced Excel skills will come in handy, especially when it comes to creating financial models.

Is FMVA Better Than CFA?

FMVA and CFA serve distinct purposes, with FMVA being dedicated to financial modelling and valuation, whereas CFA is a wider investment programme.

How Long Does It Take to Learn Financial Modelling Alongside CFA?

The study time for an effective financial modelling course could be about 10-20 hours in the case of the Financial Modelling PSM offered by CFA, but financial modelling courses would need significantly more practice than that.

What Are the Job Opportunities After Both CFA and Financial Modelling?

Candidates with both skill sets can explore investment research, valuation, investment banking, corporate finance, FP&A and other analytical finance roles.

Current Role

Co-Founder & CEO at Zell Education

Education

• ACCA – Association of Chartered Certified Accountants, Finance (2011 – 2014)
• Bachelor of Commerce (BCom), Financial Markets from H.R. College Of Commerce & Economics (2010 – 2013)

Location

Mumbai, India

Expertise

ACCA Certified