CFA Exam Format Explained — Level I, II, and III (2026)

Three CFA levels. Three completely different exam formats. What gets candidates into trouble is not understanding that the format shift between Level I and Level II — and again between Level II and Level III — is as significant as the content change. This post covers exactly what you will face in the exam room at each level.

CFA Level I — 180 Standalone Multiple-Choice Questions

The Level I exam is computer-based, taken at an authorised Prometric testing centre. It consists of 180 multiple-choice questions split across two sessions of 2 hours and 15 minutes each — 90 questions per session. There is an optional break between the two sessions. Questions are standalone: each question tests one concept with no connection to any other question in the exam. You select answers on screen; no written work is required. Scratch paper is provided at the centre and collected at the end of the session. Level I is offered four times per year: February, May, August, and November.

The 180 questions are distributed across ten topic areas. Approximate question counts by topic (exact counts vary by exam version):

• Ethics and Professional Standards — approximately 27–36 questions
• Quantitative Methods — approximately 11–16 questions
• Economics — approximately 11–16 questions
• Financial Reporting & Analysis — approximately 20–25 questions
• Corporate Issuers — approximately 11–16 questions
• Equity Investments — approximately 20–25 questions
• Fixed Income — approximately 20–25 questions
• Derivatives — approximately 9–14 questions
• Alternative Investments — approximately 9–14 questions
• Portfolio Management — approximately 9–14 questions

CFA Level II — Item Sets (Vignettes)

The format shift from Level I to Level II is the first major surprise for candidates. Instead of 180 standalone questions, Level II uses item sets — also called vignettes. Each item set presents a detailed case study (one to two pages of text, financial data, and footnotes) followed by exactly six multiple-choice questions tied to that case. Level II has 44 item sets across two sessions — 22 per session — for a total of 88 questions. The exam is offered three times per year: February, May, and August.

The vignette challenge is deliberate: the case contains more information than you need. Some of it is irrelevant — distractors placed there to test whether you can identify what matters. This is fundamentally different from Level I, where the question tells you exactly what to calculate. At Level II, you must first decide what to look for, then execute the calculation. Candidates who under-prepare for this format change struggle even if they know the content. Strong Level I performance does not translate automatically to Level II readiness — the skill being tested is different.

CFA Level III — Constructed Response (Essay) + Item Sets

Level III splits into two completely different sessions. The morning session is constructed response — you are given a case and must write structured answers in a text box on screen. There are no multiple-choice options. There is no partial credit for knowing a formula if you cannot articulate the answer clearly. The morning session is 2 hours and 15 minutes. The afternoon session returns to item-set format — also 2 hours and 15 minutes, with 44 multiple-choice item sets. Level III is offered twice per year: May and August.

The essay morning session is where most Level III failures occur. Candidates know the material but lose marks by: not matching the command word (calculate, explain, and justify require different response styles), writing too much (marks are allocated per point, not per paragraph), and missing sub-parts of multi-point questions. Dedicated essay practice is not optional preparation — it is the primary preparation for the morning session. Candidates who spend the majority of their prep time on item sets and treat the essay session as secondary consistently underperform relative to their content knowledge.

Side-by-Side Comparison

Calculator and Testing Centre Rules

Only two calculators are permitted in the CFA exam:

• Texas Instruments BA II Plus (including BA II Plus Professional)
• Hewlett-Packard HP 12C (including HP 12C Platinum and HP 12C Anniversary Edition)

All other calculators are prohibited. Phones, tablets, smartwatches, and any internet-connected devices are not allowed in the testing room. CFA Institute recommends the BA II Plus for most candidates.

What is at your testing desk: computer, scratch paper (provided by the centre and collected after the session), your permitted calculator, and a pencil. Everything else — phone, wallet, keys, food, outerwear — goes into a locker provided at the centre.

Arrive at least 30 minutes before your scheduled start time. Check-in involves identity verification, palm scan biometrics, and locker storage. Late arrivals may not be admitted. Water and snacks are not permitted at the testing desk but are accessible during the optional break between sessions.

Exam Windows and Registration Timing

Registration timing matters financially. Early registration is typically £250–350 cheaper than late registration — that is a meaningful saving on top of the exam fee itself. More importantly, Level II and Level III have fewer exam windows than Level I. If you miss the May Level II window, the next opportunity is August. If you miss May for Level III, you wait until August. The consequence of an unplanned deferral is not just a missed window — it is months of additional holding time before you can attempt the exam again. Build your study plan around the exam window calendar, not the other way around. Decide on your target window first, work backwards to determine when preparation must start, and register early to lock in the lower fee.