The CFA (Chartered Financial Analyst) exam is a three-level program run by CFA Institute, and each level is a 4.5-hour exam. Level I is 180 multiple-choice questions, Level II is 88 questions in item sets built on vignettes, and Level III mixes item sets with constructed-response (essay) questions. Pass rates have averaged about 41% at Level I, 45% at Level II and 51% at Level III from 2016 to 2025 (CFA Institute), and exam fees for all three levels come to about $3,520 to $4,570. The charter is one of the most recognized credentials in investment management.
I took all three levels while working full time as an actuary, and it took me about three years. It's a hard program, but each level builds on the one before, and if you care about investments, the depth at Levels II and III is worth the work.
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| Level I | Level II | Level III | |
|---|---|---|---|
| Format | 180 multiple-choice questions | 88 questions in item sets | Item sets plus constructed response |
| Duration | 4.5 hours | 4.5 hours | 4.5 hours |
| Pass rate (CFA Institute, 2016 to 2025 average) | 41% | 45% | 51% |
| Exam windows | 4 a year (Feb, May, Aug, Nov) | 3 a year (May, Aug, Nov) | 2 a year (Feb, Aug) |
You can use a TI BA II Plus or an HP 12C calculator at every level.
What each level tests
Level I tests breadth across 10 topic areas. CFA Institute's weights are 15 to 20% for Ethics and Professional Standards; 11 to 14% each for Financial Statement Analysis, Equity Investments and Fixed Income; 6 to 9% each for Quantitative Methods, Economics and Corporate Issuers; 5 to 8% for Derivatives; 7 to 10% for Alternative Investments; and 8 to 12% for Portfolio Management.
Level II uses the same 10 topics, but there aren't any standalone questions. Each one sits in an item set, a vignette followed by several questions that need deeper analysis and multi-step reasoning. The free CFA Level II question bank guide explains the format and how to pace it.
Level III is about portfolio management and wealth planning. It combines constructed-response questions, where you write out your answer, with item sets, and it tests synthesis and judgment.
Pass rates and how to prepare
CFA Institute publishes pass rates after each window. Those are per-sitting rates, so multiplying them together doesn't tell you how many people who start Level I finish. Candidates retake levels, take time off and drop out at different points, so each level's pool is a different group of people. Level III usually has the highest pass rate, since anyone who reaches it has already shown they can study and knows the material well.
CFA Institute says successful candidates report spending over 300 hr on average preparing for each level. Divide that by the weeks you have left before your exam to get a weekly target. My rule of thumb is to spend most of those hours on practice questions that cover every Learning Outcome and on reviewing your misses, not on rereading the curriculum.
FreeFellow is a CFA Institute Prep Provider, and its question banks are free for CFA Level I (about 1,800 questions), Level II and Level III. Every question has a step-by-step solution, and the readiness score is free too. Timed mock exams, flashcards and analytics by topic are part of Fellow.
Who takes it, eligibility and cost
Candidates are mostly heading for investment management, equity research, fixed income, portfolio management or risk roles, and they range from final-year finance and economics students to analysts already at asset managers to career changers trying to break in. CFA Institute reports candidates from over 170 countries. Plenty of asset managers and research firms list the charter, or progress toward it, in their hiring requirements.
To enroll, you need one of three things: a bachelor's degree or equivalent; to be an undergraduate whose Level I exam window is 23 months or less before the month you graduate; or 4,000 hours of work experience, higher education or a mix of the two, built up over at least three sequential years and completed by the time you register for Level I. Each year of higher education counts as 1,000 hours, and the work and education periods can't overlap. If you enroll as an undergraduate, you have to be within 11 months of graduating to sit Level II, and to have finished your degree or built up 4,000 hours of work experience before Level III. You also need a valid international travel passport. The charter is a separate step. To earn it after you pass all three levels, you also need 4,000 hours of relevant professional experience and professional references.
Each level's exam fee depends on whether you register by the early or standard deadline: $1,140 or $1,490 for Level I, the same for Level II, and $1,240 or $1,590 for Level III. That's about $3,520 to $4,570 for all three (CFA Institute), and the digital curriculum comes with registration.
If you're starting out, the free CFA Level I practice questions are the place to begin.