How Is the CFA Level 1 Scored and Scaled?
From Raw Score to Scaled Score
The foundation of your result is the raw score, which is simply the total number of correct answers out of the 180 multiple-choice questions presented during the two sessions. However, the CFA Institute does not release these raw figures. Instead, they utilize CFA scaled scoring to account for minor variations in difficulty between different versions of the exam. Since the transition to Computer-Based Testing (CBT), candidates may sit for the exam on different days, potentially seeing different sets of questions. To ensure that a candidate who receives a more difficult set of questions is not unfairly disadvantaged, the Institute applies a statistical process to equate scores. This ensures that the "passing standard" remains consistent regardless of the specific items a candidate encounters on their computer screen.
The Role of the Minimum Passing Score (MPS)
The CFA Level 1 minimum passing score (MPS) is the specific point on the scaled score range that determines whether a candidate passes or fails. It is important to recognize that the MPS is not a pre-defined number set before the exam begins. Rather, it is established after the testing window concludes and the data has been analyzed. This benchmark represents the minimum level of competency required to advance to Level II. While the Institute never officially discloses the exact MPS, it is widely estimated by independent researchers to fluctuate between 60% and 72% depending on the exam's difficulty. This variability ensures that the designation maintains its prestige by requiring a consistent level of mastery over the curriculum, rather than rewarding candidates for passing an unusually easy exam version.
No Penalty for Wrong Answers
A pivotal aspect of the scoring logic is the absence of a negative marking system. Your score is derived exclusively from the questions you answer correctly. This means that an incorrect response and an unanswered question carry the same weight: zero points. For the candidate, this creates a clear tactical imperative to never leave a question blank. Even if a candidate is forced to guess on a complex Fixed Income or Derivatives question, the 33% statistical probability of a correct guess on a three-option multiple-choice question can only improve the final scaled score. This "no penalty" rule is a fundamental reason why time management is so critical; leaving questions unanswered at the end of a session is an unforced error that directly lowers the probability of meeting the MPS.
Understanding the CFA Level 1 Minimum Passing Score (MPS)
How the Board of Governors Sets the MPS
The determination of the MPS is a multi-stage process involving the Angoff Method, a standard-setting procedure where a panel of charterholders reviews each question to estimate the probability that a "borderline" candidate would answer it correctly. Following this review, the CFA Institute Board of Governors evaluates the psychometric data and the panel's recommendations to finalize the MPS. This process is designed to be criterion-referenced, meaning the passing standard is based on a set level of knowledge and skill rather than a quota of how many people should pass. This ensures that every candidate who meets the competency threshold receives a passing result, regardless of how well or poorly their peers performed in that specific window.
Why the MPS Changes Per Exam Administration
Fluctuations in the CFA MPS explained through the lens of exam psychometrics reveal that no two exam windows are identical in difficulty. Factors such as the mix of question types, the complexity of the vignettes, and the specific learning outcome statements (LOS) tested can vary. If a particular exam cycle features a higher concentration of computationally intensive Quantitative Methods questions that are statistically proven to be more difficult, the Board of Governors may set a slightly lower MPS to compensate. Conversely, if an exam is deemed more straightforward, the MPS may rise. This dynamic adjustment is the mechanism that prevents "grade inflation" and ensures that a "Pass" in February carries the same weight and validity as a "Pass" in August.
MPS vs. a Fixed Percentage Threshold
Many candidates mistakenly believe that scoring a 70% is a guaranteed pass. While a 70% is historically a very safe margin, it is not a fixed rule. The CFA Level 1 results analysis shows that the Institute rejects the fixed-percentage model to avoid the pitfalls of varying exam difficulty. In a fixed-threshold system, a candidate could fail a very hard exam with a 69%, while a candidate in a different year passes an easy exam with a 71% despite having less actual knowledge. By using a floating MPS based on psychometric analysis, the Institute ensures that the "bar" for entry into the profession remains at a stable level of intellectual rigor, protecting the value of the charter for all existing and future members.
When your results are released, you will receive a CFA performance report that provides a visual breakdown of your mastery across the ten topic areas. The report uses a thin black line to represent your actual score and a dashed line to represent the MPS. Furthermore, it includes a shaded "confidence interval" (the blue box) which indicates the range within which your score would likely fall if you were to take the exam again under similar circumstances. This visualization is crucial for understanding how close you were to the passing threshold. If your score line is well above the dashed MPS line, you demonstrated clear mastery; if it is touching or just below, you were a "borderline" candidate where a few questions made the difference.
What 'Above 70%' Really Means
In the topic-specific breakdown of the performance report, the 70% line serves as a key psychological and analytical benchmark. While the Institute does not give you a specific numerical score for each topic, achieving a score in the "Above 70%" category for heavily weighted sections like Ethical and Professional Standards or Financial Statement Analysis is a strong indicator of proficiency. Because Ethics carries a significant weight, many believe the "Ethics Adjustment" exists, where a strong performance in Ethics can push a borderline candidate into the passing category. While the exact mechanics are proprietary, the performance report clearly shows that consistent performance above the 70% threshold across the largest topic areas is the most reliable path to an overall passing result.
Using the Report to Guide Level II Study
The performance report is not just a post-mortem of your Level I attempt; it is a diagnostic tool for Level II. The CFA Level II curriculum builds directly upon the foundations laid in Level I, particularly in areas like Equity Valuation and Corporate Issuers. If your Level I report shows you were in the bottom 10th percentile for Financial Reporting and Analysis (FRA), you must remediate those gaps before beginning Level II, as the complexity of multi-national operations and pension accounting in the next level will be insurmountable without a solid Level I foundation. A "Pass" with low scores in core areas should be viewed as a signal to review those specific modules before moving forward.
The Relationship Between Scoring and Pass Rates
How the MPS Influences the Historical Pass Rate
The pass rate is a secondary outcome of the MPS, not a primary driver. When the Board of Governors sets the MPS, they do not target a specific pass percentage. However, the interaction between the MPS and the candidate pool's preparation levels results in the historical pass rate we see publicly. In recent years, Level I pass rates have seen significant volatility, ranging from as low as 22% to as high as 49%. This fluctuation is often a reflection of how the global candidate pool's average performance interacts with the MPS. If the pool is less prepared on average, the pass rate will naturally drop, even if the MPS remains relatively stable compared to previous years.
Factors That Cause Pass Rate Fluctuations
Several factors contribute to the shifts observed in CFA Level 1 results analysis. Changes in the curriculum, such as the introduction of Data Science or Alternative Investments sub-topics, can temporarily lower pass rates as candidates and prep providers adjust to new material. Additionally, the shift to CBT has changed the testing environment and frequency, potentially impacting candidate stamina and preparation cycles. It is also theorized that "deferred" candidates from previous windows may perform differently than new candidates, adding another layer of variability to the aggregate performance data. Regardless of these external factors, the scoring mechanism remains focused on the individual's ability to demonstrate the required competencies defined in the curriculum.
Why Your Score is Not a Percentile Rank
It is vital to distinguish your CFA result from a percentile rank often found in standardized testing like the GMAT or GRE. In those exams, your score is relative to other test-takers. In the CFA program, your score is absolute relative to the standard of professional excellence. You are not competing against the person sitting in the cubicle next to you at the Prometric center; you are competing against the MPS. This means that in theory, if every single candidate demonstrated mastery of the material, every candidate could pass. This distinction is important for candidate morale and study philosophy, as it encourages a focus on the curriculum's learning objectives rather than trying to "out-prep" the average candidate.
Logistics of CFA Level 1 Results Release
Typical Timeline for Receiving Results
After the conclusion of the testing window, there is a waiting period of approximately five to eight weeks. This time is required for the CFA Institute to conduct its rigorous quality control and psychometric analysis. During this period, the Institute performs data forensics to ensure the integrity of the exam results and to identify any potential testing irregularities. Candidates are typically notified via email of the specific date the results will be released. The results are usually sent out in batches, and while the wait can be stressful, it is a necessary part of the process to ensure that the CFA scaled scoring is applied accurately across thousands of global candidates.
How to Access Your Results Online
On the day of the release, candidates receive an email indicating whether they passed or failed. However, the detailed CFA performance report must be accessed through the candidate's account on the CFA Institute website. Due to the high volume of traffic on results day, the site can occasionally experience delays. The report is provided as a downloadable PDF and remains available in the candidate's "Program Tracker" for a limited time. It is highly recommended to download and save a permanent copy of this report, as it provides the only detailed evidence of your performance across the specific sub-disciplines of the curriculum, which may be useful for future employment verification or study planning.
What to Do After Receiving a Pass or Fail
Receiving a "Pass" result allows immediate registration for the CFA Level II exam, provided the candidate meets the timing requirements for the next available window. For those who receive a "Fail" result, the performance report becomes the most valuable asset for their next attempt. By analyzing the topic area bands, a candidate can identify if their failure was due to a broad lack of understanding or a specific weakness in high-weight areas. If the score line was just below the MPS, the strategy should focus on doing more practice questions and mock exams to bridge the small gap. If the score was significantly lower, a full re-evaluation of study methods and a longer preparation timeline may be necessary before attempting the Level I exam again.