The CFA is widely considered worth the investment for those pursuing careers in investment management, equity research, or portfolio management. CFA charterholders earn 20-30% more on average than non-charterholders. However, the program requires significant time commitment (300+ hours of study per level).

How much do investment banking analysts make?

First-year investment banking analysts at major banks earn $100,000 to $120,000 in base salary plus bonuses of $50,000 to $100,000+, for total compensation of $150,000 to $220,000. Senior associates and VPs earn $250,000 to $500,000+.

What is the career path for financial analysts?

The typical career path progresses from financial analyst to senior analyst to finance manager to director of finance to VP of finance to CFO. In investment management, the path goes from analyst to senior analyst to portfolio manager to managing director.

Do financial analysts work long hours?

Hours vary by sector. Investment banking analysts often work 70-80+ hours per week. Corporate finance analysts typically work 45-55 hours. Buy-side analysts at asset management firms generally work 50-60 hours but with better lifestyle than investment banking.

What skills do financial analysts need?

Essential skills include financial modeling, Excel proficiency, data analysis, accounting knowledge, and written/verbal communication. Programming skills (Python, SQL), familiarity with financial databases (Bloomberg, FactSet), and industry knowledge are increasingly important.

Financial Analyst Salary: How Much Do They Really Make?

Business & FinanceFaster than average

Financial analysts evaluate financial data to help organizations make investment decisions, assess business performance, and develop financial strategies. They create financial models, analyze market trends, prepare reports, and advise management on capital allocation. Financial analysts work in banks, investment firms, corporations, and consulting companies.

Median Salary

$99,010

Salary Range

$57,520 – $169,940

Hourly Equivalent

$47.60/hr

Growth Rate

Financial Analyst Salary by Experience Level

Entry Level (0-2 years)$71,287

$34.27/hr

Mid Career (3-6 years)$99,010

$47.60/hr

Senior (7-12 years)$123,763

$59.50/hr

Expert (13+ years)$143,565

$69.02/hr

Financial Analyst Salary by State (Top 10)

Rank	State	Annual Salary	Hourly Rate
#1	California	$120,792	$58.07/hr
#2	New York	$117,822	$56.65/hr
#3	Washington	$114,852	$55.22/hr
#4	Massachusetts	$113,861	$54.74/hr
#5	New Jersey	$111,881	$53.79/hr
#6	Connecticut	$109,901	$52.84/hr
#7	Maryland	$107,921	$51.89/hr
#8	Alaska	$106,931	$51.41/hr
#9	Hawaii	$105,941	$50.93/hr
#10	Oregon	$103,961	$49.98/hr

Financial Analyst Salary by City (Top 10 Metros)

Rank	City	Annual Salary	Hourly Rate
#1	San Francisco, CA	$136,634	$65.69/hr
#2	New York City, NY	$130,693	$62.83/hr
#3	San Jose, CA	$128,713	$61.88/hr
#4	Seattle, WA	$123,763	$59.50/hr
#5	Boston, MA	$120,792	$58.07/hr
#6	Washington D.C., DC	$118,812	$57.12/hr
#7	Los Angeles, CA	$116,832	$56.17/hr
#8	Denver, CO	$110,891	$53.31/hr
#9	Austin, TX	$108,911	$52.36/hr
#10	Chicago, IL	$106,931	$51.41/hr

How to Become a Financial Analyst

A bachelor's degree in finance, accounting, economics, or mathematics is the standard entry requirement for financial analysts. These programs provide a foundation in financial analysis, accounting principles, statistics, economics, and business management.

Many financial analysts pursue the Chartered Financial Analyst (CFA) designation, which is the gold standard credential in investment analysis and portfolio management. The CFA program involves passing three progressively difficult exams over two to four years while accumulating four years of professional experience. The CFA designation significantly enhances career prospects and earning potential.

Strong quantitative skills are essential. Financial analysts must be proficient in Excel, financial modeling, data analysis, and statistical tools. Knowledge of programming languages like Python and SQL is increasingly valued. Familiarity with Bloomberg terminals and other financial data platforms is expected in investment-related roles.

Entry-level financial analysts typically start in corporate finance, investment banking, or equity research. Career advancement leads to senior analyst, portfolio manager, finance director, or VP of finance roles. Some analysts transition to investment banking, private equity, or hedge funds where compensation can be significantly higher.

Job Outlook for Financial Analysts

8% growth — Faster than average

The job outlook for financial analysts is solid, with 8% growth projected from 2022 to 2032. The increasing complexity of financial markets, regulatory requirements, and the growing use of data analytics in financial decision-making are driving demand for qualified analysts.

Financial analysts who hold the CFA designation and have strong quantitative and technical skills will have the best job prospects. The growing importance of ESG (Environmental, Social, and Governance) investing and fintech is creating new specialization areas within financial analysis.

Compensation varies significantly by sector. Investment banking analysts at top firms earn $100,000 to $200,000 in their first few years, while corporate finance analysts earn $60,000 to $90,000. Senior professionals in asset management, private equity, and hedge funds can earn well into the six and seven figures.

Education & Certifications

Education Required

Bachelor's Degree in Finance, Accounting, or Economics

Key Certifications

CFA (Chartered Financial Analyst)
FRM (Financial Risk Manager)
Series 7 and 63