The three CFA levels compared
The CFA is three separate exams, each building on the last. Level I tests breadth, Level II tests depth through vignette questions, and Level III tests judgment through portfolio decisions and essays. You must pass them in order.
Side by side
| Level I | Level II | Level III | |
|---|---|---|---|
| Tests | Breadth across ten topic areas | Applying and valuing, in cases | Constructing and managing portfolios |
| Format | 180 multiple-choice questions | 22 vignettes, 88 questions | 11 item sets and 11 essay sets |
| Offered | Feb, May, Aug, Nov | May, Aug, Nov | Feb, Aug |
| Fee, early or standard | $1,140 or $1,490 | $1,140 or $1,490 | $1,240 or $1,590 |
| Pass rate, ten-year average | About 40% | About 45% | About 51% |
| Study time recommended | 300+ hours | 300+ hours | 300+ hours |
Fees are for one attempt. Pass rates are ten-year averages from CFA Institute.
Level I: the foundation
Level I covers ten topic areas, from quantitative methods and economics to fixed income, derivatives and ethics, and tests whether you know the tools. It is the most-taken level by a wide margin, and its sheer volume of material is what catches people out rather than its difficulty on any one topic.
Level II: application
Level II revisits the same ground but asks you to apply it. Every question belongs to a vignette, a case study of about a page and a half, and the emphasis is on valuation and analysis. It needs the breadth of Level I plus real depth in each topic.
Level III: judgment
Level III is about building and managing portfolios for clients. It adds written essay answers, which are marked by charterholders, and a specialized pathway: Portfolio Management, Private Wealth or Private Markets. It is the only level offered just twice a year, so a failed attempt means a six-month wait.
Each level recommends 300 or more hours of study. Sitting two levels in the same year means studying seriously for both in parallel, so many candidates space them out.
There is no overall time limit, and passed levels never expire. Each level carries a six-attempt cap.
Each level has its own prep package and price, so budget for all three rather than only Level I.
Common questions
Can I skip a level?
No. The levels must be taken in order, and you must pass one to register for the next.
Why is Level III only offered twice a year?
Level III runs only in February and August, so scheduling it around the other two levels takes some planning. Check the exam dates page for the next windows.