The CFA exam pattern is rigorous as it is all about the thorough assessment of your investment knowledge. For many aspiring professionals, the first question that arises is, Is CFA worth it? And understanding the demands of the exam is an essential part of finding that answer.
Understanding the exam pattern is essential before you plan to take the CFA exams. Each level tests different skills and knowledge, and the format changes as you progress.
Read our blog further as we break down the CFA exam pattern for each level and give you insights on what to expect. While writing this, we aim to help you plan your preparation more effectively and increase your chances of success.
CFA Exam Pattern: An Overview
CFA (Chartered Financial Analyst) is one of the topmost prestigious qualifications in the world of finance. Those considering it should first review the eligibility for CFA, which includes educational qualifications and professional standards.
The CFA exam structure is difficult to get through; what can be said of the fulfillment fulfilment of conquering the CFA if the exams were simple? The exams are held in three levels, i.e., Level I, Level II, and Level III.
Each level aims to measure the degree of knowledge and application in finance and investment management.
The computer-based exam is conducted by the CFA Institute for all three levels. The subjects remain the same, approximately, in all levels, such as,
- Ethics
- Economics
- Financial Reporting
- Equity
- Fixed Income
- Portfolio Management
The levels, however, differ in style of questioning and increase in the level of analysis expected. This would be a brief overview of each level of the CFA exam structure:
- Level I is oriented toward understanding and recalling basic concepts and tools. It is mostly theoretical and tests your recall and comprehension of knowledge.
- Level II is oriented towards application. You apply concepts in realistic scenarios through case-based (item set) questions.
- Level III tests judgment and formulation of strategies as well as construction of financial solutions. It has essay-style questions in addition to item sets.
Hence, the CFA exam evaluates not only what you know but, more importantly, how you use that knowledge to make decisions in financial matters. The challenge and reward in the CFA program lie in its different phases.
CFA Exam Duration
Each CFA exam in all three levels is divided into two sessions. One in the morning and an afternoon session. You can take a break in between. The total duration for each level is 4 hours and 24 minutes without the optional break.
- Each session lasts approximately 2 hours and 12 minutes.
- There is an optional break of about 30 minutes between the two sessions.
- Candidates must complete both sessions on the same day.
Level | CFA Exam Duration | CFA Exam Format | Time per Session |
Level I | 4 hours 30 minutes | 90 MCQs in each of 2 sessions | 2 hrs 15 mins each |
Level II | 4 hours 30 minutes | 11 item sets per session (88 total) | 2 hrs 15 mins each |
Level III | 4 hours 30 minutes | Essay questions + Item sets | 2 hrs 15 mins each |
It is important to note that while the overall CFA exam duration is consistent across all levels, the question formats and complexities vary. Level I focuses on multiple-choice questions testing fundamental concepts, Level II emphasises application through item sets, and Level III assesses synthesis and evaluation skills via essay questions and item sets.
Moreover, proper time management and familiarity with the CFA exam structure are crucial for success. Practicing under timed conditions helps you build stamina to patiently sit during the CFA exam duration and improve strategies for exam day.
CFA Level 1 Exam Pattern
The CFA Level 1 exam is the starting point of the CFA program. It checks your understanding of basic financial concepts and tools. The exam is fully multiple-choice based and tests your memory, understanding, and basic application skills.
Total Questions: 180
Type: Multiple Choice Questions (MCQs)
Sessions: Two sessions (90 questions each)
Time per Session: 2 hours 15 minutes
Total CFA Level 1 Exam duration: 4 hours 30 minutes (excluding break)
In the CFA Level 1 Exam Pattern, each question is independent. It means that it is not connected to other questions. You will get a question, three answer options, and you must choose the best one within the given CFA Level 1 Exam duration.
The CFA Level I exam covers 10 core topics:
- Ethics and Professional Standards
- Quantitative Methods
- Economics
- Financial Reporting and Analysis
- Corporate Issuers
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management
Each subject carries a different weight, but Ethics, FRA, and Quant are among the most heavily tested. The exam focuses on understanding basic concepts, formulas, and definitions. You will need to know how to solve direct problems quickly and accurately.
CFA Level 2 Exam Pattern
The CFA Level 2 exam pattern is more advanced than Level I, and it tests how well candidates would be able to apply their learning to real-world scenarios. Rather than simple MCQs, item sets or mini case studies are used.
Total Questions in the CFA Level 2 Exam Pattern: 88
Type: Case-based (item set) multiple-choice questions
CFA Level 2 Exam duration: Two sessions (44 questions per session)
- Time per Session: 2 hours and 15 minutes
- Total CFA Level 1 Exam duration: 4 hours and 30 minutes (plus 1-hour break)
Each item set in the CFA Level 2 Exam Pattern comes with a briefcase known as a “vignette,” under which are 4-6 MCQs regarding that case. You have to read the case carefully and come up with concepts to answer the questions relating to it. All questions in that set are attached to a single vignette.
The same 10 topics as Level I but with more emphasis on: Application of formulas and concepts, Reading and interpreting data. Generally, the focus areas for Ethics, Equity, FRA, Fixed Income, and Portfolio Management.
Hence, you will apply knowledge at Level II. You will read and comprehend quickly and solve case-vignette-based questions. It is not merely about knowing formulas, but also when and how to use them.
CFA Level 3 Exam Pattern
Passing the CFA Level 3 happens to be the final milestone in the CFA triumph. It is related to portfolio management and wealth planning. The exam evaluates your ability to apply and explain your thinking. So it is not only about getting questions right but also about making sound financial judgements.
The CFA Level 3 Exam duration is 4 hours and 30 minutes.
Session number two.
- First session: Constructed-response (essay-type questions)
- Second session: Item sets (case-based MCQs)
Constructed responses, however, are not long essays. You are presented with a case and expected to write short answers, lists, or brief explanations in some of the questions based on the written reasoning. Your answers must be clear and straightforward, and you should answer all of the questions, as there is no choice given.
Item sets, as with Level II, are case-based questions: you get a vignette and many MCQs based on it.
The CFA Level 3 Exam Pattern, while including the same topics as earlier levels, carries the highest emphasis on portfolio management, with ethics and fixed income being the other leading ones. The CFA Level III exam tests your ability to think like a portfolio manager.
You are expected to support all decisions, write clearly, and use this knowledge to connect with real-world investment strategies within the given CFA Level 3 Exam duration.
Cost of becoming a CFA
In applying for the CFA designation, the candidate incurs numerous costs, such as enrollment fees and exam registrations. The net cost depends on when you registered and how many attempts it took you to clear each level.
Key Costs Involved:
Component | Cost (USD) | Details |
| One-Time Enrollment Fee | $350 | Paid once during CFA Level I registration |
| Level I Exam Fee | $990 (Early) / $1,290 | Depends on when you register |
| Level II Exam Fee | $990 (Early) / $1,290 | Same as Level I |
| Level III Exam Fee | $1,090 (Early) / $1,390 | Slightly higher due to the advanced format |
| Rescheduling Fee (Optional) | $250 | If you change your exam date or location |
| Study Materials (Optional) | $300 – $1,000 per level | Many students prefer third-party prep providers |
| Practice Tests/Mocks (Optional) | $50 – $200 per level | Extra resources for revision and confidence-building |
Note: These fees are applicable for exams scheduled in 2025. Starting with exams in February 2026, the CFA Institute will eliminate the one-time enrollment fee and adjust the registration fees accordingly.
Total CFA Cost (Early Registration & One Attempt per Level):
Fee Component | Amount (USD) |
Enrollment Fee | $350 |
Level I Exam Fee | $990 |
Level II Exam Fee | $990 |
Level III Exam Fee | $1,090 |
Total (Exams Only) | $3,420 |
Optional Costs:
| Category | Cost Range (USD) | Notes |
| Study Materials (per level) | $300 – $1,000 | Third-party providers (optional) |
| Mock Exams / Practice Packages | $50 – $200 | Optional add-ons for practice |
| Rescheduling Fee | $250 | Optional, if you change the exam date/location |
Conclusion
The CFA exam is structured, challenging, and designed to test both depth and application of financial knowledge. Each level has a unique format, gradually moving from basic understanding to real-world portfolio management skills. The exam pattern, time limits, and question types are all set to match the complexity of the content at each stage.
Understanding the structure before you start helps you plan better, manage your time, and reduce exam stress. Whether you’re just beginning your CFA journey or preparing for the next level, being familiar with the exam pattern is a smart first step.
Also, keep in mind the costs involved. Early registration and careful planning can save you money and give you more time to prepare.
FAQ’s
Is CFA hard to crack?
Yes, the CFA exams are tough. The pass rates are generally low, especially for Level I. It requires strong discipline, consistent study, and practice. But with proper preparation and planning, it is achievable.
Does CFA have negative marking?
No. The CFA exam does not have any negative marking. You are not penalised for wrong answers, so it’s always a good idea to attempt every question.
Is the CFA Level 1 MCQ based?
Yes. The Level I exam consists entirely of multiple-choice questions (MCQs). These are divided into two sessions with 90 questions each, all based on practical financial scenarios.
What percentage is needed to pass the CFA?
The CFA Institute does not reveal a fixed passing score. However, it’s generally believed that scoring above 70% gives you a good chance of passing. Each year, the passing score is set based on exam difficulty and performance.
