How Difficult is the CFA Level 1 Exam?

1. Introduction

If you’ve ever found yourself wondering, “how hard is CFA Level 1?” you’re definitely not alone.

Ask around or Google the phrase, and you’ll quickly see that the CFA Level 1 exam is known for its intensity.

It’s the first checkpoint on the road to becoming a Chartered Financial Analyst, a designation held in high regard by investment professionals worldwide.

But here’s the truth: while it’s challenging, it’s not insurmountable.

This blog breaks down just how difficult CFA Level 1 really is, why it’s so tough, which topics are the hardest and how to prep smarter. Consider this your roadmap to navigating CFA Level 1 difficulty like a pro.

2. Why is Earning the CFA Designation So Difficult?

Let’s be honest: the CFA charter is one of the most prestigious credentials in finance, and it doesn’t come easy. So, why is the CFA so hard? It all starts with the sheer volume of material and the depth of understanding required.

To earn the CFA designation, you need to pass all three exam levels, covering everything from financial analysis and ethics to portfolio management and alternative investments. Each exam level builds on the last, testing not just your memory but your analytical thinking.

Compared to other finance certifications, the CFA exams are widely seen as some of the most grueling. Many candidates call it the hardest finance exam in the world. That might sound intimidating, but remember: thousands have made it through, and so can you.

3. How Hard is the CFA Level 1 Exam?

So, how hard is the CFA exam at Level 1?

You’re looking at 180 multiple-choice questions split across two sessions of 2 hours and 15 minutes each.

The format seems straightforward, but don’t be fooled.

This isn’t your average test. It covers 10 subjects with 73 learning modules and hundreds of formulas.

Candidates often say the CFA Level 1 difficulty stems from the breadth of topics. If you’re coming from a non-finance background, it can feel like learning a new language. Even those with finance degrees can find the CFA content surprisingly dense and fast-paced.

The bottom line?

CFA Level 1 is tough because it throws a lot at you, and fast. But with the right preparation, it’s completely doable.

4. Hardest Topics on CFA Level 1

Ask any CFA candidate, and they’ll tell you: not all topics are created equal. Here are the hardest CFA Level 1 topics to watch out for:

• Fixed Income (FI): Think bond pricing, yield curves and duration. It’s math-heavy, formula-rich and conceptually dense. Many find Fixed Income a steep climb.
• Derivatives (DER): Options, futures and swaps may take up a small portion of the exam (5-10%), but they pack a punch. These abstract instruments require both intuition and precision.
• Financial Statement Analysis (FSA): Welcome to the world of income statements, balance sheets, and cash flow analysis. Add in differences between IFRS and U.S. GAAP, and you’ve got a topic that demands attention to detail and big-picture thinking.

These subjects tend to trip candidates up because they combine technical calculations with conceptual details. But don’t worry. They’re tough, yes, but not impossible to master.

5. What is a Passing Score on the CFA Level 1 Exam?

Wondering what is the passing score on CFA exams? The CFA Institute uses a metric called the Minimum Passing Score (MPS). While the exact number isn’t published, it generally falls in the 65-70% range.

Here’s the secret: you don’t need a perfect score. But you do need consistent performance across all sections. Don’t ignore a low-weighted topic thinking it won’t matter. Every point counts.

Focus on understanding core concepts and aim for that 70% benchmark. That’s the sweet spot.

6. How to Prep for the CFA Level 1 Exam

The CFA Level 1 preparation process is all about structure and consistency. Here are the core elements of a winning CFA study plan:

• Understand the curriculum. Read the CFA Institute materials or use trusted third-party resources like AnalystPrep.
• Break it down. Organize your study time over 4-6 months, targeting 10-15 hours per week.
• Review early and often. Use spaced repetition techniques to reinforce memory.
• Practice, practice, practice. Don’t just read. Apply. Work through CFA practice questions regularly to build confidence.

7. Tips to Make the CFA Exams Easier

Do you want to give yourself a serious edge? These tips can help make CFA exam difficulty feel a lot more manageable:

• Focus on mastery, not memorization. Truly understand the logic behind each concept.
• Stick to the 300-Hour Rule. Most successful candidates report logging about 300 hours of study time.
• Use mock exams. Simulate real exam conditions to sharpen timing and endurance.
• Master your CFA financial calculator. Know your BA II Plus or HP 12C like the back of your hand.
• Prioritize high-weight topics. Ethics, Financial Statement Analysis, and Quant Methods should be at the top of your list.
• Learn time management. Don’t spend 10 minutes stuck on one question. Keep it moving.

8. How to Pass the CFA Level 1 Exam in 2024

Looking to ace the CFA Level 1 in 2025? Here’s your strategy:

• Start early. Begin 5-6 months ahead to avoid cramming.
• Create a detailed schedule. Set weekly goals and monitor your progress.
• Review Ethics consistently. Not only is it a heavily weighted section, but it can also be the tiebreaker.
• Use AnalystPrep. Our CFA study resources are designed to simplify your prep and mimic real exam difficulty.

9. Key Topics in the CFA Exams

Across all three levels, these are some of the most critical CFA subjects:

• Ethics and Professional Standards (15-20%)
• Financial Statement Analysis (FSA) (13-17%)
• Quantitative Methods (8-12%)
• Fixed Income (10-12%)
• Equity Investments (10-12%)

The CFA Level 1 section weights guide how much time you should spend on each topic. Don’t ignore low-weight areas, but definitely prioritize the heavy-hitters.

10. How Much Time Do the Exams Take?

The CFA Level 1 exam time totals 4 hours and 30 minutes, split into two sessions with 90 questions each. There’s an optional 30-minute break between sessions.

Time management is key. You have roughly 90 seconds per question. Practicing under timed conditions will help you avoid surprises on test day.

11. What Are the Questions Like?

Expect a mix of:

• Conceptual questions. Test your understanding of theories and principles.
• Quantitative questions. Require calculation and number crunching.
• Scenario-based questions. Apply what you know in real-world contexts.

CFA Level 1 questions are all multiple-choice, and the format is designed to test both your depth and breadth of knowledge. Level 1 questions are intentionally crafted to examine not only memorization but also real comprehension.

12. CFA Exams Pass Rates

Let’s talk numbers. Historically, CFA Level 1 pass rates sit around 40-45%, though they have dropped as low as 22% during the pandemic.

That may sound grim, but it just reinforces the need for smart preparation and consistent effort. With the right mindset and tools, you can beat the average.

13. Differences Between CFA Level I, II, and III Exams

• Level I: Focuses on foundational concepts and investment tools.
• Level II: Introduces item sets and deeper application.
• Level III: Emphasizes portfolio management and written response formats.

Each level has its own identity and increases in difficulty. That’s why many ask, which CFA level is the hardest? For many, it’s a tie between Level II and Level III, but Level I is the steepest learning curve. Still, the CFA Level 3 hardest topics tend to challenge even the most experienced candidates.

14. How to Schedule Your CFA Exam

Here’s how to stay on track with your CFA exam schedule:

• Visit the CFA Institute website and choose your exam window.
• Note the CFA registration deadlines and CFA Level 1 deferral policies.
• If something comes up, know how to reschedule CFA exam or request a CFA paid deferral.
• Learn how to defer CFA exam if you face personal or professional emergencies.

Pro tip: Pick an exam window that aligns with your personal and professional life. Don’t underestimate the value of having a calm schedule leading up to exam day.

15. Study Resources for CFA Exams

Using quality CFA study resources can make all the difference. At AnalystPrep, we offer:

• CFA Study Notes. Clear and concise breakdowns of every learning objective.
• CFA Practice Questions. Thousands of questions that mirror the actual exam.
• CFA Mock Exams. Full-length tests to assess your readiness.

All these tools are designed to simplify complex CFA content and make your study process smoother. Ready to get started? Explore our CFA resources

Conclusion

So, is the CFA exam hard? Yes. Is CFA Level 1 hard? Definitely. Is CFA difficult overall? Without a doubt. But with a clear strategy, high-quality materials, and consistent effort, it becomes a challenge you can absolutely overcome.

Whether you’re preparing for your first attempt or looking for a fresh approach after a setback, remember: this exam is more marathon than sprint. Take it one step at a time, and don’t be afraid to lean on resources like AnalystPrep to support your journey.

The road to becoming a Chartered Financial Analyst is demanding, but also incredibly rewarding. Let your effort reflect your ambition, and success will follow.