The CFA® is notorious for having one of the lowest pass rates of any professional exam, with rates for the CFA Level I exam hovering around 40%. The CPA exam isn’t much better, with rates around 40% for two of the three Core sections. And yet, there are over 200,000 CFAs and 670,000 CPAs.
Why so many? It’s pretty simple: earn your certification, and you’ve practically guaranteed yourself a six-figure salary.
Pretty enticing, right? But between CFA® vs. CPA, which one is the best fit for you?
In this guide, I’ll teach you everything you need to know—exam difficulty, costs, salaries, job roles, and more—so you can make the right choice for your future.
Key Takeaways
- CFA® vs. CPA Focus: CFA® charterholders specialize in investment management and financial analysis, while CPAs focus on accounting, tax, and auditing.
- Exam Difficulty Differs: The CFA® exam has three levels over several years, while the CPA exam has four sections but a faster completion time.
- Salary Potential Varies: CFA® charterholders in investment roles can earn $200K+, while CPAs in corporate finance or public accounting reach six figures.
- Work-Life Balance Matters: CPAs have structured corporate roles but long tax seasons, while CFAs® often work long hours in finance or investment banking.
- Best Choice Depends on Goals: Get a CFA® if you love investments and portfolio management; choose a CPA if you prefer accounting, tax, and financial reporting.
CFA® vs. CPA: What’s the Difference?
Before we get into the details, here’s a quick breakdown of what each certification is all about.
What Is a CFA®?
A Chartered Financial Analyst (CFA®) is a finance professional specializing in investment management, portfolio management, and financial analysis. The CFA Institute runs the CFA® program and is widely recognized in the finance industry.
CFA® charterholders work in roles such as:
- Investment Analyst – Researches stocks, bonds, and financial markets.
- Portfolio Manager – Manages investments for individuals or institutions.
- Risk Analyst – Identifies and minimizes financial risks for companies.
- Chief Financial Officer (CFO) – Oversees a company’s financial strategy.
What Is a CPA?
A Certified Public Accountant (CPA) is an expert in financial accounting, auditing, tax, and financial reporting. CPAs work in public accounting, corporate finance, and tax preparation and must pass the CPA exam and meet state licensing requirements.
CPAs work in roles such as:
- Auditor – Examines company financial statements for accuracy.
- Tax Accountant – Prepares and reviews tax filings for businesses and individuals.
- Corporate Accountant – Manages a company’s financial records and compliance.
- CFO – Oversees accounting, financial reporting, and business strategy.
📌 Main Takeaway: CFA® professionals focus on investments and financial analysis, while CPAs specialize in accounting, tax, and audits.
Exam & Certification Requirements
Both the CFA® and CPA exams are challenging, but they test very different skill sets.
How to Become a CFA®
- Earn a bachelor’s degree (or have equivalent work experience).
- Pass the CFA® exam (3 levels, each taking 6+ months of study).
- Gain 4,000 hours of work experience in investment-related roles.
- Join the CFA Institute and follow their ethical standards.
How to Become a CPA
- Earn a bachelor’s degree in accounting or finance.
- Complete 150 credit hours (some states require a master’s degree).
- Pass the CPA exam (4 sections with a 50% pass rate).
- Gain 1–2 years of accounting experience under a licensed CPA.
- Apply for a CPA license and meet continuing education requirements.
Which Exam is Harder?
- The CFA® exam is longer (3 levels over 2–4 years) and has a pass rate of 40% per level.
- The CPA exam has 4 sections, with a total pass rate of around 50%.
- Both require serious dedication, but CFA® candidates must master complex investment strategies and financial modeling.
Cost Comparison: CFA® vs. CPA
Both certifications require a financial investment, but the CFA® program is usually more expensive over time, especially more than the cost of the CPA exam. Here are the total estimated costs:
| Expense | CFA® | CPA |
|---|---|---|
| Exam Fees | $3,420 – $4,320 | $1,579 – $1,979 |
| Study Materials | $799 – $5,000 | $1,000 – $6,000 |
| Licensing Fees | $49 – $299 per year | $50 – $500 per year |
| Total Estimated Cost | $4,268 – $9,619 | $2,629 – $8,479 |
📌 CPAs typically pay less upfront, while CFA® candidates invest more money and time into passing all three exam levels.
CFA® vs. CPA Salary Comparison & Job Prospects
Let’s talk money—because both CFA® and CPA careers can be highly lucrative.
| Career Stage | Career Stage | Career Stage |
|---|---|---|
| Entry-Level | $70,000 – $100,000 | $55,000 – $75,000 |
| Mid-Career | $100,000 – $200,000 | $80,000 – $150,000 |
| Senior-Level | $200,000+ (CFO, Portfolio Manager) | $150,000+ (CFO, Partner) |
Sources: ZipRecruiter (CFA®, CPA), Becker, CFA Institute
📌 CFA® charterholders working in investment management tend to earn higher salaries, especially if they reach senior roles like Portfolio Manager or CFO.
📌 CPAs in corporate finance or public accounting can earn six figures, with opportunities to become a CFO, tax consultant, or audit partner.
Work-Life Balance & Career Flexibility
Your lifestyle and work preferences should also play a role in your decision.
CFA® Work-Life Balance
- Work hours: 50–80 hours per week (longer in investment banking).
- High-pressure roles in hedge funds, portfolio management, and finance.
- More travel for client meetings and investment research.
CPA Work-Life Balance
- Work hours: 40–80 hours per week (especially during tax season).
- More structured 9-to-5 roles in corporate finance.
- Public accounting firms can be demanding, but corporate jobs offer balance.
📌 CFAs® may face long hours in finance, while CPAs have more predictable schedules—except during tax season.
CPA vs. CFA®: Which One Should You Choose?
| Factor | CFA® | CPA |
|---|---|---|
| Main Focus | Investments, financial analysis | Accounting, tax, auditing |
| Common Jobs | Portfolio manager, investment banker, financial analyst | Auditor, tax accountant, corporate finance |
| Salary Potential | $100K – $200K+ | $80K – $150K+ |
| Work Hours | 50–80 per week | 40–80 per week (busy seasons) |
| Education Needed | Bachelor’s + CFA® program | Bachelor’s + CPA exam (150 credit hours) |
| Best For | Finance professionals & investment experts | Accounting & corporate finance professionals |
Final Thoughts: CFA® or CPA?
💼 Get a CFA® if you:
- Love investments, portfolio management, and financial analysis.
- Want to work in investment banking, asset management, or hedge funds.
- Can handle challenging exams and long study hours.
📊 Get a CPA if you:
- Enjoy accounting, tax, and financial reporting.
- Want a stable career in corporate finance or public accounting.
- Prefer a structured certification process with quicker ROI.
Whichever path you choose, both CFA® and CPA careers lead to exciting opportunities and high earning potential. Now, it’s up to you to decide which one fits your career goals and lifestyle. 🚀
FAQs
It depends on your career goals—CFA® charterholders specialize in investments and portfolio management, while CPAs focus on accounting, tax, and financial reporting.
CFA® charter recipients in investment management can earn $200K+, while CPAs in corporate finance or public accounting can reach six figures, especially at senior levels.
No, CFAs® focus on investment analysis and financial planning, while CPAs are licensed to handle accounting, audits, and tax compliance.
If you want to work in accounting or corporate finance, become a CPA candidate first. If you’re aiming for investment banking or asset management, go for the CFA®.
Higher roles include CFO (Chief Financial Officer), Partner at an accounting firm, or adding credentials like CFA®, CMA, or MBA to boost the flexibility of your career path.
