Wanting to know more about the CFA® Level 1 exam? You are in good hands.
The CFA® Level 1 pass rate in 2025 was 45%, showing that more than half of candidates do not succeed on their first try, which makes preparation a critical factor.
Level 1 is the entry point to the Chartered Financial Analyst® (CFA®®) Program, a globally recognized credential for investment professionals. Instead of one massive exam, the CFA® Program is divided into three levels, each progressively more complex. Level 1 emphasizes the core tools of investment management, ethical standards, and quantitative analysis.
This guide explains what the CFA® Level 1 exam covers, the topics you’ll face, and my advice on how to prepare for your first step toward earning the CFA® charter.
Key Takeaways
- Foundation First: The CFA® Level 1 exam is the starting point of the three CFA® exams.
- CFA® Program Enrollment: You must meet CFA® Program enrollment requirements before you can register.
- Exam Format: 180 multiple-choice exam questions split into two sessions.
- Curriculum Coverage: Level 1 is about making sure you know the key terms and learning outcome statements that form the base of investment analysis.
- Challenge Level: The difficulty comes from the range of topics and the need to apply concepts, not just memorize them.
The Basics: Your First CFA® Milestone
The CFA® Level 1 exam is the true starting point of the program, testing your grasp of finance, markets, ethics, and investment tools.
From my experience reviewing CFA® prep, those who succeed don’t just memorize. They understand how valuation methods, risk factors, and financial reporting connect to real-world investing. Passing shows you’ve built the foundation needed to advance through the CFA® Program.
CFA® Level 1 Exam at a Glance
| Feature | Details |
|---|---|
| Eligibility | Enroll in the CFA® Program and have a valid passport |
| Format | 180 multiple-choice questions (90 per session) |
| Duration | 2 sessions of 135 minutes each |
| Frequency | Offered 4 times a year |
| Results | Released 5–8 weeks post-exam |
| Cost | $1,140 per exam |
| Prep Time | Average of 300+ hours recommended |
What to Expect on Exam Day
- Format: Multiple-choice questions only
- Structure: Each question has three answer options, no “all of the above”
- Timing: Two sessions of 135 minutes each, with a break
- Coverage: Questions from any topic can appear in either session
CFA® Level 1 Exam Topics
Level 1 spans 10 core topic areas:
- Ethical and Professional Conduct Standards
- Quantitative Methods like probability, statistics, and the capital asset pricing model
- Economics, including market structures and interest rate risk
- Financial Statement Analysis covering basic financial statements, alternative accounting methods, and financial reporting procedures
- Corporate Governance and stakeholder management
- Equity Investments including equity securities and basic equity valuation models
- Fixed Income Securities with yield measures, credit analysis, and how to describe fixed income securities
- Alternative Investments: Focuses on nontraditional assets like hedge funds and private equity
- Portfolio and Risk Management across asset classes and environmental and social considerations
Sample CFA® Level 1 Question
From what I’ve seen reviewing CFA® prep, practice questions are where candidates quickly realize the exam isn’t about memorizing terms, it’s about applying concepts under pressure. Here’s an example:
Q: Which of the following is most likely to decrease when a company increases its financial leverage?
A. Return on equity
B. Earnings per share volatility
C. Interest coverage ratio ✅
Explanation: As financial leverage increases, interest expenses rise, lowering the interest coverage ratio.
Is the CFA® Level 1 Exam Difficult?
The challenge isn’t just the content, it’s the combination of factors that make it tough to master:
- Broad Scope: You’re tested on ten topic areas, from ethics and economics to accounting and fixed income.
- Application Over Memorization: Most questions require you to apply concepts, not just recall formulas.
- Time Pressure: With 180 questions and limited time, pacing is critical.
- Ethics is Tricky: The ethics section requires precise interpretation, not just common sense.
It’s a comprehensive exam by design, meant to test not just what you know, but how well you can use it.
How to Study for CFA® Level 1
You don’t need to live in the books, but you do need a smart plan. Here’s how to make your study time count:
- 📘 Start with the CFA® Curriculum
It’s your blueprint; know the learning outcome statements inside and out. - ❓ Drill Practice Questions
Get used to how questions are phrased and how concepts are tested. - 🎯 Attack Weak Spots
Struggling with quant or FSA? Double down on what’s tripping you up. - 🧪 Take Full Mock Exams
Simulate the real thing to build endurance and exam-day timing.
💡 Pro Tip: A trusted CFA® prep program with practice exams, mock exams, and the right study materials can turn exam stress into exam confidence.
Final Thoughts: Your First Big Step Starts Here
CFA® Level 1 is more than just an exam; it’s proof that you’re serious about a career in finance. It’s your entry ticket to a global network of professionals and a sign that you can handle complex ideas under pressure.
If you stay focused, stick to a smart study plan, and push through the hard days, you won’t just pass, you’ll build the confidence to take on Level 2 and beyond.
Start your CFA® journey and take the first step toward becoming a world-class finance professional.
FAQs
CFA® Level 1 is the first of three CFA® exams, focusing on investment analysis, ethics, and financial knowledge.
Based on official CFA® Institute data, the average pass rate for CFA® Level 1 in 2025 was 45 percent.
Most candidates report studying 300 or more hours for the CFA® Level 1 exam.
You may re-register for the CFA® Level 1 if you fail, but if you fail twice in six months, you must wait six months from your first attempt. Once you pass, retakes are not allowed.
After passing the CFA® Level 1, you become eligible for the Level 2 CFA® exam, which focuses on deeper financial analysis, company valuation, and advanced portfolio and risk management.
