Level 2 of the CFA exam is often considered the most difficult of the CFA exams. While the level 1 exam has lower pass rates and effectively filters many candidates out, level 2 tests a much deeper and more comprehensive body of knowledge. The historical pass rates for the CFA level 2 exam were 44% from 2010 – 2023.
One reason why Level 2 is harder than Level 1 is that it’s more application-focused, requiring students to go into more depth and detail on subject matter. While the CFA level 1 exam consists entirely of standalone multiple choice questions, CFA level 2 consists of vignette-style multiple-choice questions, which add a layer of complexity that many candidates aren’t as comfortable with.
The CFA Institute generally recommends a 300-hour commitment, but these are broad averages. To maximize your chances of success, we recommend setting aside at least 350 hours of studying over a 6-7 month period. If you need less time than this, great, but budgeting in extra study time than you may need is the best way to maximize you chances of success.
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CFA Exam Level 2 Pass Rates, by Year
Pass rates are often used as a barometer to how difficult a particular exam is. They’re an imperfect measure though, as many contest that while the pass rates for CFA level two are slightly higher than level 1, the level 2 exam format requires a more detailed level of knowledge.
As with any professional licensing exam, pass rates that are too high could indicate that the exam is too easy, thus devaluing the credential. If they’re too low, it may discourage candidates from investing their time and money in pursuing the credential. The perfect result is somewhere in the middle, which is where CFA level 2 finds itself.
Here are the historical CFA level 2 pass rates since 2015:
Since 2015, the CFA Level 2 pass rate ranges between 29% to 55%, with an average of 45%. For reference, comparable rates for the Level 1 and 3 exams over this time period are 40% and 52%, respectively.
Let’s take a deeper dive and analyze the pass rates from each of the past 3 years.
CFA Level 2 Pass Rate 2022
The pass rates for Level 2 exams in 2022 were 44%, 40%, and 44% for February, August, and November respectively. Based on these results, it appears the initial signs of a dip in the pass rate during the Covid-19 environment are now recovering and returning to the pre-pandemic baseline.
CFA Level 2 Pass Rate 2021
The CFA L2 pass rate for 2021 for May, August and November was 40%, 29%, and 46% respectively. Noticeably though, the CFA Level 2 2021 pass rate in August dropped to an all-time low of 29%.
Why such a dip? The CFA pass rates changed significantly at all levels during the pandemic, a period that also coincided with the introduction by the CFA Institute of computer-based exams and the increased testing schedule.
CFA Level 2 Pass Rate 2020
The only level 2 exam in this year took place in December, with 55% passing the exam. This was easily the highest pass rate over the prior decade, as it usually hovered in the mid 40s. With the onset of COVID-19, it’s believed that the prevalence of remote work and social isolation may have provided a temporary boost to candidates in the process of studying for the exam.
CFA Candidate Volume
Is there a correlation between the CFA Level 2 pass rate and the volume of candidates appearing for the exam, especially during and after the pandemic?
Statistically, yes. If a lesser number of candidates who have had all the time to prepare at home during the pandemic appears for the exam immediately after, the pass rates will be skewed higher, thereby giving a wrong impression that the exams are not challenging enough.
Here is how the CFA Level 2 candidate volumes have trended since 2015. Incidentally, similar trends have been found across all levels of the CFA exams in the same period.
As noted in the data above, the volume of candidates appearing for the Level 2 exam steadily grew from 2015 and peaked in 2019, before dropping considerably due to the pandemic. While 2023 data is currently incomplete, it’s clear that candidate numbers are still a fraction of what they were pre-pandemic.
CFA Level 2 Grading
We’ve discussed the CFA Level 2 pass rates by year, the volume of candidates, and analyzed the effect of the pandemic on the overall CFA Level 2 pass rate.
But how is the pass rate calculated?
All CFA exam grading is done every year by charter holders and machines. A methodology is then used by the CFA Institute to fix the minimum passing score to be applicable to each level of the exam. This score is not put in the public domain by the Institute. The pass rates for each exam window for Levels 1, 2, and 3 are then given out by the institute.
As a rule of thumb, your chances of passing the level 2 are highest if you aim to consistently complete your CFA review course material at a rate of 80-85% or higher. While there’s no guarantee for success, the level of effort and dedication required to master the material at this level often translates to success on the CFA level 2 exam.
Bottom Line
Even though the level 2 pass rates are getting back to normal in 2022 and 2023, the low scores for 2020 and 2021 should serve as reminder to take the CFA exam very seriously.
At the end of the day, each level of the CFA exam is hard and will tax your knowledge to the fullest. Therefore, preparing as thoroughly as possible is your best bet to passing the CFA level 2 exam on your first try.
