Breaking Down the Cost of CFA in 2024 + Essential Budgeting Tips

As you dive into a world of opportunity, you’ll notice that every rupee invested in your education can lead to immense returns. Imagine yourself holding the coveted CFA (Chartered Financial Analyst) charter, opening doors to a world of possibilities in the finance fields and allied sectors.

We’ll talk about the golden ticket – the CFA charter – and how it’s not just an educational pursuit but an investment in your future success. We’ll also explore how this investment can pay off in ways beyond just financial gains. So, grab your calculators, and let’s crunch some numbers!

Understanding the CFA Charter

First things first, what is this CFA charter everyone’s buzzing about? The CFA program is like a boot camp for finance enthusiasts. It equips you with a deep understanding of investment management, financial analysis, and ethics. Think of it as your passport to the global financial industry

The ROI Perspective

Let’s talk numbers. Investing your time, effort, and money in obtaining the CFA charter might seem daunting at first, but trust us, it’s worth every penny. Here’s why:

• Career Advancement: Picture yourself standing out in a sea of resumes. With the CFA charter under your belt, you’re not just another finance graduate; you’re a certified expert. Employers value this distinction and often prefer candidates with the CFA designation for roles in investment banking, asset management, and beyond.
• Salary Boost: Cha-ching! That’s the sound of your salary skyrocketing. Studies show that CFA charter holders earn significantly higher salaries compared to their non-charterholder counterparts. So, while your peers are still crunching numbers, you’ll be counting your cash.
• Global Recognition: The CFA charter is your ticket to the global stage. Whether you’re eyeing opportunities in Mumbai, New York, or Singapore, the CFA designation is universally recognized, opening doors to international career prospects.
• Network Expansion: They say your network is your net worth, and it couldn’t be truer in the world of finance. Becoming a CFA charter holder grants you access to an exclusive network of finance professionals, paving the way for mentorship, collaboration, and career growth.

Also Read – CFA Jobs & Salaries In India After CFA Level 1, Level 2 & Level 3

Key Cost Components

Total Cost Breakdown of CFA Exams

When we talk about the CFA (Chartered Financial Analyst) charter, one question that often pops up is whether it’s worth the investment. But before we get into the returns, let’s break down the cost of CFA course exams. Understanding the financial side of things is crucial in planning your CFA journey.

Let’s take a closer look at the expenses you’ll encounter when pursuing all three levels of the CFA exams, including potential fees for study materials.

By understanding these costs upfront, you can better prepare financially for your CFA journey and make informed decisions about your investment. So, let’s crunch some numbers!

The total cost for all three CFA exams can vary between $3,220 and $8,270 or  ₹2,69,000 to ₹6,90,000.

This assumes you pass each exam consecutively without needing to pay for travel or accommodation.

Two main factors influence the cost range:

• When you register for the exam.
• The study materials you choose to use.

Also Read – Breaking Down CFA Pass Rates by Levels and Years

CFA EXAMS COST  2024-25

Breakdown of Costs by Level

CFA LEVEL 1

• One-off Enrolment Fee: $350 (₹29,ooo)
• Calculator – BA II Plus/ HP12C: $50 (₹4,200)
• Registration Fee: $940 to $1,290 (₹78,500 to ₹1,07,000)
• Study Material (Approx.): $0 to $1,300 (₹1,09,000)
• TOTAL COST: $1,340 to $2,990 (₹1,12,000 to ₹2,50,000)

CFA LEVEL 2

• Registration Fee: $940 to $1,290 (₹78,500 to ₹1,07,000)
• Study Material (Approx.): $0 to $1,300 (₹1,09,000)
• TOTAL COST: $940 to $2,590 (₹78,500 to ₹2,17,000)

CFA LEVEL 3

• Registration Fee: $940 to $1,390 (₹78,500 to ₹1,16,500)
• Study Material (Approx.): $0 to $1,300 (₹1,09,000)
• TOTAL COST: $940 to $2,690 (₹78,500 to ₹2,25,000)

Get 200+ hrs of CFA Level 1 Coaching in your city, plus a study plan & study material

Now, let’s look at each of the five key cost components in more detail to help you refine your cost estimates.

CFA Level 1, 2, 3: Enrollment and Registration Fees

There are two main fees you need to pay:

• Enrollment Fee: This is a one-time fee of US$350 (₹29,ooo) . You pay it when you register for Level 1 for the first time.
• Registration Fee: This fee varies depending on the level and the year. For 2024, it’s between $940 and $1,250 (₹78,500 to ₹1,04,000). For 2025, it’s between $940 and $1,390 (₹78,500 to ₹1,16,500).

Here is the 2024-2025 exam fee payable to the CFA Institute

Factors Influencing Cost Range

• Deadline and Fee Variations: The timing of your registration plays a significant role in determining your costs. Early registration often comes with lower fees compared to standard registration. Missing early registration deadlines may result in higher fees.
• Study Material Choices: The materials you choose to prepare for the exams can impact your expenses. Opting for third-party study materials or additional resources may incur extra costs beyond the exam fees.
• Retake Fees: If you need to retake any level of the exam, you’ll have to pay the registration fees again. Therefore, passing each level on the first attempt can help minimize costs.
• Travel and Accommodation: While not part of the exam fees themselves, travel and accommodation costs can significantly impact your overall expenses, especially if you need to travel to take the exams.

Also Read – Duration of CFA Course: How Long Would It Take To Complete Each CFA Level?

CFA Calculator’s Price (HP12C or TI BA II Plus)

In the high-stakes environment of CFA exams, calculators serve as indispensable allies. They ensure accuracy, enhance speed, and offer versatility in tackling complex financial problems. With their specialized functions tailored for financial analysis, calculators empower candidates to navigate through challenging questions with confidence and efficiency.

Prices of Approved Calculator Models

This is a part many forget to think about when budgeting, but it’s not a big expense, usually around $50 on average.

If you like having a spare calculator during exams, remember to double the cost below.

Here are the prices of the four CFA-approved calculators:

• Texas Instruments BA II Plus: $35 (₹2,950)
• Texas Instruments BA II Plus Professional: $50 (₹4,200)
• HP12C: $75 (₹6,300)
• HP12C Platinum: $50 (₹4,200)

CFA Study Materials’ Cost

There are two things to consider here, depending on whether you’re using the CFA curriculum books or third-party study materials:

Physical CFA Curriculum Books: By default, your CFA registration fees cover e-books for the curriculum. If you want physical books, it’s an extra $250 (₹20,900) per level, plus shipping. If you live outside the USA, you might also have to pay import duties or customs fees when the books arrive.

Third-Party Study Materials: While you can study just from the CFA books, some people prefer more condensed third-party materials to save time. These can cost anywhere from $99 to $1,399 (₹8,300 to ₹1,17,000) per level, depending on the package and provider you choose.

CFA Study Materials Cost Comparison

*Please Note: It’s crucial to know what self-study packages and premium courses provide before selecting one over the other. A question bank, practice tests, and study notes are usually included in self-study packages.

However, premium courses—whether they are delivered online or in-person—offer all the resources included in self-study packages plus extra benefits like two- to three-day intensive review sessions and lectures delivered online. Candidates can use this comparison to choose which choice best suits their requirements and learning preferences.

Also Read – 6 Important CFA Updates & Curriculum Changes Announced in 2023

CFA Third-Party Study Materials: How Much Should I Budget?

We think it’s tough to aim for the lowest possible cost scenario, where you register early for all levels and don’t spend anything on third-party study materials. Relying solely on CFA curriculum e-books might be challenging.

Based on many candidates’ experiences, a more realistic average cost would be around $800 (₹67,000) per level for third-party study materials if you’re using them as your main learning source. This should cover either a package with study notes and 6-7 mock exams or a self-study package with 4 mock exams plus 1-2 extra mock exams from other sources.

For those who have a bit more to spend or prefer having lectures and review courses included, a more realistic premium cost would be around $1,000 per level for third-party study materials. This should cover the cost of a typical online premium course with extras like lectures and last-minute review workshops.

Other CFA Costs

Even though there are over 400 test locations worldwide for the computer-based CFA exams, some candidates might still need to travel or find a place to stay nearby. These extra costs should be considered for all three levels of the exam.

Another important thing to think about is the cost of retaking the exam if you don’t pass the first time. Depending on when you register, retaking a level can cost between $940 and $1,390, plus extra if you need to buy study materials again.

If you need to change your exam date for any reason, there’s also a $250 (₹21,000) fee for that.

Unfortunately, failing the CFA exams can be expensive. But don’t worry, we’ve got some money-saving tips to share later on.

CFA Institute’s Annual Dues for Regular Membership

Once you’ve successfully passed all three levels of the CFA exams and completed the required work experience and references, you can apply for regular membership to officially receive your CFA Charter. This membership costs $299 (₹25,000) per year.

It’s crucial to note that you can only use the Chartered Financial Analyst (CFA) designation if you are a regular member of the CFA Institute. In simpler terms, becoming a regular member of the CFA Institute is a necessary step to earning and using the CFA Charter.

Strategies to Reduce CFA Exam Costs

Here are some tips to help you save money and make the most of your CFA exam journey.

• Register Early: If you can, aim to register for the exams as early as possible. This can save you $310 (₹26,000) off the standard registration fee of $1,250 for each level. Plus, registering early gives you more time to study, increasing your chances of passing.
• Seek Company Sponsorship: Don’t be afraid to ask your employer to sponsor your CFA exams. Many companies are willing to support employees in their professional development. Check out our step-by-step guide on how to apply for sponsorship from your firm. You might end up getting your entire CFA costs covered!
• Apply for Scholarships: The CFA Institute offers various scholarships that can help offset the costs of the exams. Take the time to explore these opportunities and apply for any scholarships you qualify for.
• Utilize Free Resources & Guides: Take advantage of free resources. IMS Proschool is here to support you on your journey to becoming a CFA charter holder. Talk to us for resources including a study planner that has helped all of our students, lists of free study materials, guides to mock exams and review courses, and much more.
• Check for Study Material Discounts: Third-party study materials can be a valuable addition to your study plan, but they can also be costly. You might find some great deals that can help you save money.

Also Read – CFA Scholarships – Types, Eligibility & Application Process

Importance of Quality Preparation

Quality preparation is crucial due to the high total cost of the CFA exams and their relatively low pass rates. Investing time and effort into thorough preparation can help maximize your chances of passing each level on the first attempt, saving you from the additional costs of retaking exams. With the CFA exams being a significant financial investment, ensuring you’re well-prepared can ultimately save you money in the long run.

IMS Proschool as Your Trusted CFA Coaching Institute

IMS Proschool offers CFA classes at over 15 centers in India. With an 84% recommendation rate, our experienced CFA faculty ensures students are well-prepared to excel in each level of the program. Classes start monthly for added flexibility. With over 3,000 aspirants trained and a commitment to exam pass rates, Proschool is dedicated to helping students achieve their dream of becoming Chartered Financial Analysts.

Here’s what Proschool offers to its CFA students

• Introductory Module (M0): For those new to finance or uncertain about pursuing a CFA, our introductory module helps clear the basics and assess if this path aligns with their career aspirations.
• Customized Study Plans: Every candidate is unique, and we acknowledge this by offering a 6-month personalized study plan, with an additional 3 months dedicated to revision, ensuring a comprehensive understanding of all topics.
• Direct Pathway to Employment: Completing Level 1 opens doors to job opportunities, as we guide our students in securing employment right after certification.
• Robust Practice Regime: To ensure our students are thoroughly prepared, we offer 5 mock exams and over 2000 practice questions, simulating the real exam environment.
• Support Beyond the Classroom: Access to an extensive library of resources & 24/7 doubt solutions by our faculty (Ask any of our students!)

Why is Proschool the Top Choice for CFA Classes in India?

Our program focuses on personalized career goals, tailoring the curriculum to meet each student’s individual needs. With Proschool’s CFA course, students receive unlimited revision and doubt-solving sessions if they don’t pass their exams. Learn from experienced CFA gurus with over 30 years of combined industry experience. Our active learning pedagogy engages students through case studies, practical methods, and problem-solving.

Mentors support students in improving their learning and career aspirations. Students benefit from a customized learning plan, ensuring comprehensive subject coverage in 6 months with 3 months dedicated to revision. Proschool provides valuable placement assistance, helping students find internships during the course and suitable job roles after completion.

FAQs

1: What is the average pass rate for the CFA exams?

A: The average pass rate for the CFA exams varies from year to year and level to level. Generally, it ranges from 40% to 50%. It’s important to prepare thoroughly to maximize your chances of passing.

2: Are there any additional costs beyond those listed in the article?

A: Yes, there may be additional costs beyond those mentioned in the article. These could include travel expenses if you need to go to a test center, accommodation costs if you need to stay overnight, and any fees associated with retaking the exam or purchasing additional study materials.

3: How can I estimate my total CFA exam costs accurately?

A: To estimate your total CFA exam costs accurately, consider the registration fees for each level, any additional fees such as enrollment or rescheduling fees, the cost of study materials, and any potential travel or accommodation expenses. It’s also a good idea to factor in the possibility of retaking the exam and the associated costs.

4: Are there any financing options available for covering CFA exam expenses?

A: While there are no specific financing options provided by the CFA Institute for covering exam expenses, some candidates may be able to secure sponsorship from their employers or apply for scholarships offered by the CFA Institute. Additionally, personal loans or educational funding options may be available through financial institutions.

5: What are the consequences of failing a CFA exam in terms of cost?

A: Failing a CFA exam can result in additional costs, including the need to pay the registration fee again if you decide to retake the exam. You may also incur additional costs for purchasing study materials or seeking additional preparation resources. Additionally, there may be indirect costs such as the time and effort spent on studying for the exam again.