Clevency
- The CFA funnel: from Level 1 registrant to charterholder
- The compounded pass-rate maths
- Historical pass rates by level
- First-timers vs. retakers: the 20-point gap
- The pandemic-era anomaly
- Global charterholders and context
- Context for hope: it's a marathon, not a sprint
- What happens to those who don't pass
- Frequently asked questions
The CFA funnel: from Level 1 registrant to charterholder
For every 200,000 Level 1 registrants in a typical cohort cycle, here is roughly where candidates end up:
| Stage | Approximate number | Share of original cohort |
|---|---|---|
| Level 1 registrants | 200,000 | 100% |
| Pass Level 1 (any attempt) | ~86,000 | ~43% |
| Pass Level 2 (any attempt) | ~37,000 | ~18% |
| Pass Level 3 (any attempt) | ~18,500 | ~9% |
| Earn the charter (after 4,000 hours work experience) | ~14,000 | ~7% |
The funnel narrows at every step. Attrition after Level 1 — candidates who passed but never registered for Level 2 — accounts for roughly 20% of the drop. The rest is exam failure plus the work-experience requirement.
The compounded pass-rate maths
If you want the first-attempt-only probability of clearing all three levels, multiply the recent average pass rates:
| Level | Recent pass rate | Running probability |
|---|---|---|
| Level 1 | 43% | 43.0% |
| Level 2 | 43% | 18.5% |
| Level 3 | 50% | 9.2% |
That is the raw statistical ceiling. In practice, most charterholders took more than three attempts total — the long-run figure most prep schools cite is that the median successful candidate needed around 4 to 5 total attempts across the three levels, taking roughly 4 years from Level 1 registration to charter.
Historical pass rates by level
| Year | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| 2015 | 42% | 46% | 53% |
| 2017 | 43% | 47% | 54% |
| 2019 | 41% | 44% | 56% |
| 2021 (pandemic) | 22% (Feb) — 37% (Aug) | 29% | 42% |
| 2023 | 37% | 44% | 49% |
| 2024 | 44% | 47% | 54% |
| 2025–26 avg | 43% | 43% | 50% |
First-timers vs. retakers: the 20-point gap
CFA Institute does not publish split pass rates by attempt number, but 300Hours and other independent trackers have estimated the first-time Level 1 pass rate at roughly 49% versus 29% for retakers and deferrers — a persistent 20-point gap over multiple cycles. The gap is similar at Level 2.
The interpretation matters: retakers are not less capable, but candidates who sat and failed usually did so because of a study-system problem, not an effort problem. Repeating the same system produces the same outcome.
The pandemic-era anomaly
Level 1 pass rates collapsed to 22% in February 2021 — the lowest in CFA history — before gradually recovering. Partly this was testing-centre disruption, partly it was candidates sitting with less preparation after rescheduled windows. The anomaly affects any long-run average: pass rates in 2022–2024 look lower than they really are unless you adjust for 2021.
Global charterholders and context
CFA Institute reports roughly 190,000 charterholders worldwide across 160+ countries. UK NARIC has mapped the three levels to UK postgraduate qualifications: Level 1 equivalent to a diploma, Level 2 to a bachelor's degree, Level 3 to a master's. The three-level sequence is the equivalent of layering those qualifications under live exam conditions.
Context for hope: it's a marathon, not a sprint
The 9% first-try figure is accurate but misleading. Most charterholders needed multiple attempts somewhere in the sequence. The relevant question is not "what is the first-try probability?" but "what is the eventual pass rate for candidates who stick with it?" CFA Institute's own tracked data suggests that of candidates who pass Level 1 and continue in the programme, roughly 55–60% eventually complete all three levels. The attrition is overwhelmingly at Level 1 and in the drop-off between levels, not at Level 3.
What happens to those who don't pass
A substantial minority of candidates who fail — perhaps 15–20% — pivot to adjacent credentials: FRM (Financial Risk Manager), CAIA (Chartered Alternative Investment Analyst), CIPM, or the CFA Investment Foundations certificate. Many land in roles that value the work the CFA programme developed (financial modelling, ethics, portfolio reasoning) without requiring the charter itself. Failure is not career-ending; it just redirects.
Frequently asked questions
What percentage of CFA candidates eventually pass all 3 levels?
On a first-attempt-only basis, roughly 9% pass all three levels. Including all attempts, the share of Level 1 registrants who eventually earn the charter is estimated at 10–15%.
How long does the average charterholder take?
Roughly 4 years from Level 1 registration to charter award, assuming one level per year with a retake somewhere in the sequence plus the 4,000 hours of work experience.
Which level has the lowest pass rate?
Historically Level 2. The 2021 pandemic Level 1 result was the single lowest cohort pass rate, but Level 2 has the lowest long-run average.
How many CFA charterholders are there in the world?
Approximately 190,000 as of recent CFA Institute reporting, spread across 160+ countries. The largest concentrations are in the US, UK, India, mainland China, Hong Kong, and Canada.
Is the CFA getting harder or easier?
Pass rates have been remarkably stable from 2012 to 2026 excluding the pandemic years — in the 40–45% range for Level 1 and 50–55% range for Level 3. Perceived difficulty is driven by curriculum changes, not pass-rate drift.
Does CFA Institute publish first-time vs retaker pass rates?
No. Those figures are estimated by independent trackers (300Hours and others) from candidate surveys. CFA Institute publishes only aggregate pass rates per exam window.