Pros and cons of doing a CFA versus an MBA
Over 1.8 million professionals use CFI to learn accounting, financial analysis, modeling and more. Start with a free account to explore 20+ always-free courses and hundreds of finance templates and cheat sheets.
Should I do a CFA vs MBA?
One of the most common debates among aspiring finance professionals is whether to get a CFA vs MBA. Both are highly sought after, and both have a long list of successful alumni. There are, however, some very important differences to consider, depending on what your career goals are.
CFA vs MBA? Both are highly regarded financeaccreditationsthat require a lot of hard work and can produce excellent career mobility. In order to easily summarize the trade-offs between the two designations, we have created a table that outline the most important points for each one.
CFA vs MBA – What are the differences between the programs?
See the summary table below to compare the two options – CFA vs MBA – and see which fits better with you and your personal objectives.
| CFA®
| MBA
|
|---|
Length of time:
| 3-4 years
| 1-2 years
|
Cost:
| ~$5,000
| $50,000 - $180,000
|
Prestige:
| High (equal)
| Low to Ultra-High (variable)
|
Academic focus:
| Portfolio management
| Business management
|
Networking:
| CFA societies
| Broad student/alumni networks
|
# of designation holders:
| 120,000+
| Millions+
|
Pass rate:
| ~50%
| ~85%
|
Career benefit:
| Technical knowledge
| Connections & recruitment
|
Career paths:
| -Equity research
-Investment management
-FP&A | -Investment banking
-Corporate development
-Private Equity |
CFA vs MBA – Which one is right for you?
In summary, it’s really up to you and what your personal goals are as far as determining the right answer for yourself in the CFA vs MBA debate.
CFA vs MBA – CFA
The CFA program costs less than an MBA and is more finance-specific and technically focused. It’s most suitable for people who are interested in equity research, and portfolio management. The prestige of having the charter is completely hom*ogeneous, as there is only one standard. The program focuses more on technicalskills and has little to no networking involved.
CFA vs MBA – MBA
On the other hand, MBA programs have a high degree of variability, and their prestige is measured in the school you obtained it from. It’s not really fair to ask, “is a CFA credential better than an MBA?”, when really the question has to be, “Is a Harvard MBA or a University of Phoenix MBA better than a CFA credential?”. Of course, the answer is still subjective. The school from which you received your MBA matters a lot. The top MBA schools include Harvard, Stanford, and the Wharton School of Business at the University of Pennsylvania.
The MBA is better suited to people who are more interested in general management and executiveleadership. MBA career paths tend to be more popular with people in investment banking, private equity, and corporate development.
MBA programs typically include a lot of networking, which is one of their main benefits.
Compare more designations
Below is a helpful summary table of more designations, beyond just CFA vs MBA, for easy reference.
| CFA | CPA | FMVA | CAIA | CFP | FRM |
|---|
| Number of Levels | 3 | 1 | 1 | 2 | 2 | 2 |
| Costs | $2,550 to $3,450 | $1,000 to $3,000 | $497 | $3,000 | $2,000 | $1,500 |
| Exam Pass Rate | 30-50% | 40-50% | 70% | 70% | 67% | 40-50% |
| Content Focus | Portfolio Management, Investments | Financial Reporting, Audit | Financial Modeling, Valuation | Real Assets, Alternative Investments | Financial Planning | Financial Risk Management |
| Career Application | All Encompassing | Accounting and Finance | All Encompassing | Asset Management | Retail and Wealth Management | Risk Management |
| Study Time (hrs) | 300-350 per exam | Varies | 120-200 total | 200 per exam | Varies | 200-300 per exam |
| Completion Time | 3-5 years | 2.5 - 5 years | <1 year | 1-2 years | 4 years | <1 year |
| Work Experience | 4 years | 1 year | None | 1 year | 3 years | 2 years |
Additional resources
This has been CFI’s guide to compare the CFA vs MBA. To compare more designations and degrees, explore our additional guides below:
FAQs
Desired skills: An MBA equips graduates with broad management abilities and transferable business knowledge, while a CFA provides charterholders with an in-depth knowledge of finance and related skills.
Should I get CFA before MBA? ›
If you are young, have little to no experience as a finance professional, and can afford an MBA program, earning an MBA before you pursue the CFA charter can benefit you in a few ways. There will be some overlapping curriculum material between an MBA Program and the CFA Program.
Is CFA as good as Masters? ›
Is the CFA Equivalent to a Master's Degree? Since both the CFA Program and an MSFA require an undergraduate degree in most cases and require about the same total amount of study, the CFA is generally considered to be equivalent to a master's degree.
Is the CFA harder than the bar? ›
With a pass rate of less than 11% for all three levels, the CFA passage rate is lower than most state bar exams. Virtually everyone who has taken all three exam levels will tell you it is one of the most time intensive and difficult exams they have ever sat for.
Is CFA or MBA more valuable? ›
The answers depend on your career goals. An MBA and CFA can complement each other, so earning both is worth consideration. An MBA program provides a broader education than the CFA program. The CFA focuses more on detailed topics like investment management.
What is the salary of a CFA? ›
CFA earnings in India vary based on experience and level, with entry-level salaries around ₹7-12 lakh, mid-level at ₹13-25 lakh, and senior-level at ₹26-50 lakh+ per annum.
How prestigious is CFA? ›
According to the CFA Institute, this credential "is the professional standard of choice for more than 31,000 investment firms worldwide."1 It can be especially helpful if you don't have an undergraduate degree in finance, economics, or accounting, and your goal is a job or career in the finance industry.
Is it worth getting a CFA after an MBA? ›
"Having both an MBA and a CFA is especially valuable for portfolio and corporate management positions," Horan adds. Charterholders are increasingly working in corporate finance roles that would be naturally populated by MBAs. The average age of a CFA level I test taker was 26.6 in 2018.
Is CFA still worth it? ›
Yes, CFA exam is helpful for getting into Investment banking as it trains the candidate for the core finance skills such as valuations. Is it worth getting CFA? It is worth, if you want to get into the core finance industry. However, if your goals are otherwise, it might not be directly beneficial.
Is CFA harder than a Masters? ›
It depends of your Master. I did one in Asset Management and we went way deeper in topics than the CFA and the questions asked in our exams were way harder. However, the difficulty with the CFA is to remember all subjects at once.
For Level I exams in 2013, the average age of test takers was 27.2. Five years later, that number fell to 26.6 – a difference of around seven months. (Though this only includes the June exam for 2018; the average age for December test takers ticked slightly higher – between 0.2 and 0.3 years – from 2013 through 2017).
Can you get a CFA without a Masters? ›
The short answer is, again, no. The CFA Institute simply requires you to have a bachelor's degree (or equivalent) or be in the final year of your bachelor's degree program. You'll also need to have four years of relevant work experience, and, of course, you must pass all three levels of the CFA exam.
Which is more prestigious, CPA or CFA? ›
Both the CPA and CFA are prestigious designations that show skill and competency. The primary difference between the CPA and CFA is that the CPA is an accounting credential, while the CFA is for financial analysis. While they are related in many ways, accounting and finance are ultimately separate fields.
Is passing CFA a big deal? ›
There also may be financial benefits. You may see your salary increase after you've become a CFA or you may surpass other applicants who don't have this designation when competing for a new job.
How much does a CPA make vs MBA? ›
The average starting salary for an MBA graduate is $73,417. Starting salaries often range between $40,000 and $98,500 depending on the state that you work in. For an entry-level CPA, the average starting salary is $60,697. A majority of base starting salaries for new CPAs ranges between $43,000 and $72,500.
Does having a CFA help with MBA? ›
If your gmat quant score is a bit lower, having the cfa could help resolve concerns that you cannot handle an MBA curriculum. If you want to get into investment management post-MBA, having a CFA can definitely help your case since it shows a high level of dedication.
How much do CFA vs CFP make? ›
– The CFA Institute says a CFA charter holder can earn between $126,000 and $177,000. – Comparably.com data from Feb. 2023 shows the average CFP salary in the U.S. is $121,099. The total range is between $39,300 and $187,200.
