How much do I need to study to pass?
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Fact checked by Kimberly OvercastReviewed by Andrew SchmidtFact checked by Kimberly OvercastReviewed by Andrew Schmidt
Your biggest investment in the Chartered Financial Analyst (CFA) Charter is your time, so spend it efficiently. The CFA Institute, which administers the exam, suggests that you take about 300 hours of preparation time for the Level I exam.
The amount of time required to study for the exam can be greater for those with a poor background in the subject matter and less for those who have a strong background in the subjects that the CFA curriculum covers. As a guide for a study plan, let’s use this estimate of 300 hours of reading and practice hours as a benchmark.
Key Takeaways
- Passing the CFA Level I exam, which has around a 40% pass rate over the past years, requires following a solid study plan.
- Successful Level I candidates spend more than 300 hours preparing for the exam on average.
- The best strategy is to leave at least four months to finish all the reading material.
- Don’t neglect end-of-chapter questions. They will help reveal weak points.
- Allow four weeks before the exam date to review questions and have practice sessions, while setting aside at least one day to simulate exam conditions at home.
Reading Material
The CFA Level I exam covers 10 topics, 19 study sessions, and about 60 readings. Each subject carries a different weight in the exam. A good way to manage your study time is by allocating study time based on each topic’s weight.
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The table below summarizes the distribution of 300 hours of reading on the different exam topic areas. It’s often best to leave at least four months for readings and the last month for revision and practicing. If you read two hours per day on weekdays and eight hours on the weekends, then it will take about 17 weeks (four months) to complete all of the readings.
Weekends and nonworking days are the best time to study for the CFA exam. During the week, you likely will not have time for practice questions, in addition to end-of-chapter questions. Therefore, plan to spend an additional two to four hours during the weekend on practice questions. Do not forget that the more you practice, the higher your chances of being successful on the exam.
Important
You cannot cannot add the CFA designation after your name until you have passed all three exams and earned CFA Charterholder status.
End-of-Chapter Questions
Do not forget end-of-chapter questions, and always write down your results to track your progress. End-of-chapter questions will give you an overview of what areas are tested on the exam, so you can be more focused on these areas. Additionally, these questions will reveal the weaker areas that you must focus on to improve.
The following table summarizes how to best allocate your study time for the various CFA exam topics, if you were to give yourself about 300 hours and four months (120 days) to study. Use this table as a benchmark and customize your study routine to suit your circumstances.
| Topic Area | Weight | Hours Based on 300-Hour Schedule | Days to Allocate |
| Ethical and Professional Standards | 15%–20% | 50 | 20 days |
| Quantitative Methods | 6%-9% | 22 | 9 days |
| Economics | 6%-9% | 22 | 9 days |
| Financial Statement Analysis | 11%-14% | 37 | 15 days |
| Corporate Issuers | 6%-9% | 22 | 9 days |
| Portfolio Management | 8%-12% | 30 | 12 days |
| Equity Investments | 11%-14% | 37 | 15 days |
| Fixed Income | 11%-14% | 37 | 15 days |
| Derivatives | 5%–8% | 19 | 7 days |
| Alternative Investments | 7%-10% | 24 | 9 days |
| Total | 100% | 300 | 120 days |
The Last Four Weeks
After decades of paper-based exams, the CFA exams have changed to computer-based testing. The Level I exam is offered in February, May, August, and November while the Level II exam can be written in May, August, or November. Level III candidates sit for the exam in February and August.
Taking these dates into account, allow yourself four weeks before the exam date to review questions and have practice sessions. During this period, you should practice more intensively than in previous periods. The CFA Institute will give you mock exams.
It’s recommended that you set aside at least one day to simulate exam conditions at home with the mock test. Two 2.25-hour sessions with an optional break in between are advised, to reflect the timing and structure of the computer exam. The mock exam will help you to be well-prepared physiologically for the exam.
It can also be worthwhile to take a two- to four-week study leave from work during the final phase of your preparation.
CFA Pass Rates
Preparation for all three levels of the CFA exams requires a serious commitment to following a structured study plan. According to the CFA Institute, the average annual pass rate from 2015 to 2024 for the CFA Level I exam was 40%. For the August 2024 exam, the pass rate was just 44%.
This statistic indicates that only dedicated candidates are likely to pass the exam, so be prepared to make the necessary sacrifices and put in the required effort. And remember, passing Level I is only the first step to receiving a CFA Charter—there are two more rigorous exams to go.
How much do I have to study to pass the Chartered Financial Analyst (CFA) Level I exam?
The CFA Institute recommends studying about 300 hours for the CFA Level I exam.
What Is the CFA Level I Exam Pass Rate?
The overall pass rate since the CFA Level I exam began in 1963 through August 2024 is 41%, and just 40% of test takers passed between 2015 to 2024. The August 2024 exam saw 44% pass.
What Is the Minimum Passing Score for the CFA Level I Exam?
Each year, the CFA Institute computes a minimum passing score for its exams, which changes each time the exam is given. Although the CFA Institute does not make this score available to the public, it states that scores above 70% of points available indicate topic mastery. Test prep providers believe that scores above 70% should usually constitute a pass. They also estimate that the passing score could be as low as 56% in some years and as high as 74% in others.
What Happens if I Fail the CFA Level I Exam?
If you fail the CFA exam, you have the opportunity to retake it, but not in consecutive windows or a window within six months. You can only attempt an exam twice per calendar year and have a total of six maximum attempts per exam level to succeed. You will also have to pay the registration fee each time you sit for the exam.
What’s the Fee to Write the CFA Level I Exam?
To sit for the CFA Level I exam, you will first have to pay a one-time $350 enrollment fee into the program. Each exam then costs $1,250 (or $940 for early-bird registration) for the November 2024 exam schedule. The fee increases to $1,290 ($990 for early registration) for the 2025 exams.
The Bottom Line
The key to preparing for the CFA Level I exam is to study in a structured way over a period of at least 300 hours. Hopefully, after studying in a structured way for the exam, you won’t have any issues with passing it.
Completing the CFA Level I exam is only a piece of receiving a CFA Charter. You’ll need to sit for two additional exams—CFA Level II and CFA Level III—before being eligible for this prestigious industry credential.
Read the original article on Investopedia.