Investment Banking Analyst: What They Really Earn in 2025 - Job Description, Salary, and Lifestyle

Investment banking analysts are among the highest-paid and hardest-working professionals just starting their careers. In 2025, the role continues to attract top graduates from business, finance, and economics programs who want to work on billion-dollar transactions, gain exposure to global markets, and build long-term career paths in finance. But the compensation comes with high expectations.

Analysts regularly work 70–100 hours per week, juggle multiple projects, and support senior bankers under constant time pressure. The upside? A first-year analyst can expect a salary package that can exceed $220,000, with the average salary for investment banking analysts reflecting both high base pay and significant bonuses. The investment banking industry offers unmatched exit options into private equity, hedge funds, and corporate roles, as well as lucrative opportunities for analysts to advance their careers and earnings potential.

This guide breaks down what investment banking analysts actually do, how much they earn, what the day-to-day lifestyle looks like, and how to land the role in today’s competitive recruiting environment.

What Is an Investment Banking Analyst?

As an investment banking analyst in 2025, I can say this is one of the most sought-after roles in the finance industry. It’s an entry-level position, but it offers direct exposure to corporate finance, capital markets, and large transactions that involve advising companies on mergers, acquisitions, and raising capital. Securing an analyst position in investment banking requires strong academic credentials, relevant internships, and a solid understanding of financial concepts. Analysts typically work within an investment bank, where the fast-paced environment and deal flow provide valuable experience.

The analyst role centers around supporting senior bankers. This includes creating pitch decks, updating PowerPoint presentations, conducting research, building financial models, and tracking market updates. Analysts are often assigned to an industry group within the investment bank, focusing on specific sectors such as healthcare, technology, or energy. It’s not glamorous work at first, a lot of it is administrative, but it teaches the fundamentals of how investment bankers advise companies and manage transactions. Most analysts stay in this position for two or three years before moving into private equity, hedge funds, corporate development, or business school.

Types of Firms That Hire Analysts

• Bulge bracket banks (e.g., Goldman Sachs, Morgan Stanley): Large global firms with a full suite of services
• Elite boutiques (e.g., Evercore, Lazard): Focus on M&A and advisory work; typically pay more but offer less structured training
• Middle market banks (e.g., Houlihan Lokey, Piper Sandler): Work on smaller transactions and often provide broader analyst exposure

Note: Each firm has its own expectations around client service, workload, and advancement, but the analyst role remains similar across them.

Investment Banking Analyst Salary in 2025

Salary Breakdown: Base, Bonus, and Total Compensation

Investment banking analyst salaries in 2025 remain among the highest for any entry-level role in the finance industry. Compensation includes two main components: a guaranteed base salary and a performance-based year-end bonus. Together, these make up the all-in comp or total compensation, which can vary widely depending on the firm and how strong the year was in terms of deal flow and revenue. Here’s how compensation typically breaks down:

• Base salary: Most first-year analysts at top-tier firms (bulge bracket banks and elite boutiques) now start with a base salary between $110,000 and $120,000. Some elite boutiques have increased base pay to stay competitive in recruiting top talent.
• Bonus levels: Bonuses range from $60,000 to over $100,000. Analysts are ranked into performance tiers (e.g., top bucket, mid bucket, bottom bucket) within their group. Top performers among analysts can receive the highest bonuses, sometimes exceeding their base salary, especially in strong years.
• All-in comp: Total compensation (base + bonus) for first-year analysts typically lands between $180,000 and $220,000+. At firms with stronger group performance or better individual rankings, it’s not uncommon to hit the high end or even exceed it.

Note: Most firms operate on a calendar year compensation cycle. Analysts usually receive a stub bonus after their first partial year to align with the annual bonus timeline, especially if they start mid-year after graduation. This stub can range from $25,000 to $40,000, depending on the firm and when they are onboarded.

What Determines Bonus Size?

Note: At some firms, being placed in the bottom bucket may mean getting only 50–70% of the average bonus. Landing in the top bucket can push the bonus to 100–120% of base salary, a significant difference that often encourages analysts to outwork one another.

Salary by Firm Type

• Bulge bracket banks (e.g., Goldman Sachs, Morgan Stanley) tend to offer competitive base salaries and consistent bonuses. The scale is large, and pay is tied closely to deal performance across large corporate clients and capital markets activity.
• Elite boutiques often pay more across the board. These firms focus exclusively on advisory services (mostly M&A) and tend to reward high-performing analysts with top-of-market bonuses. However, the workload may also be more intense.
• Middle market banks pay slightly less but often offer a better work-life balance. These firms handle smaller transactions but may provide broader exposure and better training for junior bankers.

Additional Notes on Analyst Compensation

• Many analysts also receive signing bonuses ($10,000–$15,000), especially from elite boutiques or to encourage early acceptance of offers.
• Firms may offer retention bonuses to discourage analysts from leaving before their second or third year.
• Compensation increases slightly in the second and third years. By year three, an analyst’s total compensation can exceed $230,000, especially if they stay through promotion to associate.

Lifestyle and Work Expectations as an IB Analyst

Typical Hours and Weekly Schedule

The schedule of an investment banking analyst is demanding. Most analysts work 70 to 100 hours per week, and the actual workload depends on the number of active deals and the staffing model of their team. A typical weekday often starts around 9:00 to 10:00 AM and can go until midnight or later. When deals are active or deadlines are approaching, working past 2:00 AM is not unusual. On some weekends, analysts are expected to be available for edits or last-minute requests, especially if the team is working on a live transaction. Some firms have introduced protected weekends, where analysts are officially off from Friday evening to Sunday morning. But in practice, these protections often don’t apply when deadlines shift, senior bankers request changes, or live deals are in progress. Here’s a rough breakdown of what an average week might look like:

While some analysts manage lighter weeks, many work extended hours during deal-heavy months, especially in M&A and capital markets groups.

Analyst Lifestyle: Culture and Tradeoffs

The day-to-day experience of being a banking analyst is shaped by constant deadlines, tight turnarounds, and a culture that rewards responsiveness. Analysts are expected to answer emails and update deliverables with little notice. Time off can be interrupted, and analysts often rearrange personal plans to meet deal needs. Burnout is common. The volume of administrative tasks, time pressure, and high expectations can feel overwhelming, especially in the first few months on the job. Analysts have minimal control over their schedule, and project timelines often change without warning. That said, the analyst class at most firms tends to be close-knit. Because most analysts are hired in large groups and start at the same time, there’s often a strong sense of peer support. Many analysts bond through late nights and shared deadlines, which makes the environment more manageable. There are clear tradeoffs, but there are also real benefits:

Skills Gained as an IB Analyst

• Building complex financial models (DCF, comps, LBOs)
• Understanding how corporate clients raise capital and pursue acquisitions
• Learning how to write reports, build presentations, and pitch ideas
• Navigating fast-moving projects with senior stakeholders
• Improving communication skills through constant feedback and review

Note: The experience gives analysts a practical understanding of financial markets, business operations, and transactions, all of which are valuable for roles across PE firms, hedge funds, corporate development, and other parts of the finance industry.

How to Become an Investment Banking Analyst

Educational Background and Target Schools

Most investment banking analysts start with a bachelor’s degree in business administration, finance, economics, or accounting. Some also come from technical backgrounds like mathematics or computer science, especially if they’ve built strong technical skills like Excel, Python, or advanced financial modeling. Banks often recruit heavily from a list of "target schools", universities with established pipelines into investment banking. These schools offer advantages like well-connected alumni networks, tailored finance clubs, and direct access to on-campus recruiting.

Top target schools for investment banking include:

• Wharton School – University of Pennsylvania
• Stern School of Business – New York University
• Columbia University
• Ross School of Business – University of Michigan
• Fuqua School of Business – Duke University

Other schools, such as Georgetown (McDonough), UVA (McIntire), and Cornell, also send a large number of candidates to the top firms. That said, many analysts come from semi-target or non-target schools. Success from a non-target path is possible, but it usually requires a more deliberate approach, especially around networking and technical prep. Strong grades, relevant certifications like the Chartered Financial Analyst (CFA) Level I, and internship experience can help level the playing field.

Recruiting Timeline and Process

Recruiting for IB analyst positions typically begins early. The process revolves around landing a junior summer internship, which often leads to a full-time offer after graduation. Here’s how the timeline usually works:

Standard interview process for most firms:

1. Resume and application screening – Focus on GPA, leadership, and experience.
2. Pre-recorded interviews (like HireVue) – Behavioral and technical questions.
3. Superday interviews – Final round with multiple bankers across different levels (analyst, associate, VP). Expect a mix of technical, behavioral, and market questions.

Strong candidates are prepared to answer technical questions about accounting, valuation methods, and capital markets, as well as basic questions about market trends, transactions, and the role of financial institutions. You'll also need to explain your interest in investment banking, your experience conducting research, and how you manage multiple projects under pressure.

Networking and Cold Outreach

Networking is one of the most important parts of breaking into investment banking, especially if you don’t attend a target school. Most firms prefer to hire candidates who have already connected with their team through alumni, info sessions, or referrals.

Here’s how to make networking effective:

• Start 6–12 months before you plan to apply
• Identify current analysts and alumni at your target firms
• Send short, personalized cold emails asking for 15-minute calls
• Keep a tracker of your outreach and follow-ups
• Focus your questions on their career path, firm culture, and advice, not asking directly for a referral

Being clear, consistent, and prepared during these conversations builds credibility. After a strong call, it’s common for a contact to offer to refer you internally, which increases your chances of moving past the resume screen.

Leland offers experienced coaches who specialize in IB recruiting strategy. Working with someone who's gone through the process makes a real difference. Work 1:1 with a finance coach here.

Career Path After the Analyst Role

IB Analyst → Associate Track

Most investment banking analysts stay in the role for two to three years. From there, some are promoted internally to associate through what’s called the A-to-A track (analyst to associate). These promotions are offered to high-performing analysts who’ve proven they can manage both the work and the pace of the job. The shift from analyst to associate also includes a significant pay raise. While analyst salaries cap around $220K in total compensation, associates can earn $350K or more, depending on the firm and year.

Associates take on more responsibility, including:

• Reviewing analyst deliverables
• Managing timelines across multiple projects
• Leading communication with corporate clients
• Working directly with senior bankers on presentations, models, and live deals

Note: Not every analyst chooses to stay. Many opt to leave for lateral roles at other banks, join PE firms, or pursue an MBA before continuing in finance or switching careers.

Exit Opportunities

The investment banking analyst experience sets up a strong foundation across many areas of the finance industry. Most analysts leave after 24 to 36 months, and the most common exit paths include:

1. Private Equity (PE) Firms

Many analysts move into roles at PE firms, which focus on acquiring and growing companies using debt (leveraged buyouts). These roles use many of the same skills as investment banking, financial modeling, due diligence, and advising companies, but offer more exposure to operational decisions and portfolio management.

Top PE recruiters:

• Blackstone
• KKR
• Bain Capital
• Carlyle
• Vista Equity Partners

2. Hedge Funds

Some analysts pivot into hedge fund roles, especially those with a strong interest in public markets, equities, or fixed income. Hedge fund roles involve conducting research, generating investment ideas, and pitching positions to portfolio managers. These roles require deeper market knowledge and faster analysis cycles than M&A banking.

3. Corporate Development

Corporate development teams are in-house M&A and strategic finance teams at companies like Google, Apple, Amazon, or high-growth startups. The role is similar to banking, but the hours are better and the focus is on internal strategy instead of external client service. Analysts help evaluate acquisitions, partnerships, and other strategic transactions.

4. MBA Programs

Analysts looking to broaden their skill set or pivot into different parts of business often pursue an MBA after two or three years. Investment banking experience is valued by top MBA programs, including:

• Harvard Business School (HBS)
• Stanford GSB
• Wharton
• Booth
• Columbia Business School

Investment Banking Analyst vs Associate: Key Differences

Responsibilities and Expectations

The main difference between an investment banking analyst and an associate is the level of responsibility and client exposure. Analysts focus on producing the work. Associates are responsible for reviewing that work and managing the overall workflow.

Analyst Responsibilities:

• Build and maintain financial models
• Update pitchbooks, presentations, and Excel files
• Support deal execution through data entry, formatting, and research
• Respond quickly to changes or requests from senior team members
• Handle detailed administrative tasks like organizing data rooms and preparing materials for meetings

Associate Responsibilities:

• Review and edit analyst work before it reaches senior bankers
• Manage timelines and coordinate across internal teams
• Lead client calls and help maintain long-term relationships
• Communicate with financial sponsors, lawyers, accountants, and other stakeholders during deals
• Provide guidance and training to junior analysts

Associates are expected to have stronger interpersonal skills, better industry knowledge, and more experience building relationships with both internal teams and external clients. They act as the bridge between analysts and the more senior members of the team.

Compensation and Career Trajectory

Associates earn significantly more than analysts, reflecting the increase in responsibility, hours, and client exposure. Most associates either come from the analyst track (after 2–3 years in the role) or are hired after completing an MBA. Post-MBA hires are expected to ramp up quickly and lead deals at a higher level.

The typical investment banking career path looks like this:

• Analyst (2–3 years)
• Associate (3–4 years)
• Vice President (3+ years)
• Director / Executive Director (2–3 years)
• Managing Director (ongoing)

At the managing director level, bankers are responsible for bringing in new business, owning client relationships, and leading large transactions. Very few make it this far, but each step on the path builds on the skills developed as an analyst and associate.

Is Investment Banking Right for You?

Becoming an investment banking analyst is one of the most demanding entry-level jobs in the finance industry. The hours are long, the deadlines are tight, and the expectations are high. You’ll be responsible for managing multiple deliverables at once, responding quickly to senior bankers, and working late nights with little advance notice. But for those who can handle the pressure, the tradeoff is clear. The investment banker's salary is among the highest for recent graduates. The exit opportunities, including private equity, hedge funds, and top MBA programs, are some of the best in any industry. The role also gives you a strong foundation in financial modeling, corporate finance, and working with corporate clients on real transactions.

Expert Tip: If you’re detail-oriented, resilient, and comfortable giving up short-term flexibility for long-term gain, the analyst role may be a good fit. Many analysts use the experience to move into high-paying roles in finance or pivot to leadership positions in other industries after a few years. But it’s not the right path for everyone. If work-life balance is a priority, or if you’re not interested in capital markets, corporate finance, or financial institutions, other roles in the finance industry may be a better fit.

The Bottom Line

The investment banking analyst role offers high pay, fast-paced learning, and access to some of the most competitive exit paths in finance. But it comes at a cost: long hours, tight deadlines, and constant pressure to deliver. If you want to build a long-term career in finance or use banking as a launchpad into private equity, hedge funds, corporate development, or business school, this role sets you up with the right skills, connections, and reputation. But it’s not a casual commitment.

Launch Your Investment Banking Career with Expert Guidance

Success as an analyst depends on resilience, attention to detail, strong communication skills, and the ability to handle intense workloads with little margin for error. For those who can manage the grind, the rewards are real. And for many, the analyst role becomes the most valuable stepping stone in their career. Work with an investment banking expert to start your career off right.

Read these next:

• Investment Banking Resume Guide From a Former Banker (With Examples)
• Financial Analysis & Valuation for IB Interviews – A Beginner's Guide
• Investment Banking: What it Is & How it Works
• Investment Banking Interview Guide: What to Know

FAQs

What does an investment banking analyst do?

• An investment banking analyst builds financial models, prepares presentations, conducts research, and supports deal execution for mergers, acquisitions, and capital raising.

Which pays more, investment banking or private equity?

• Private equity pays more than investment banking, especially in long-term roles with carried interest and profit sharing.

How much do investment banking analysts get paid?

• Investment banking analysts earn $180,000 to $220,000 per year, including base salary and bonus.

Is it hard to become an investment banking analyst?

• Yes, becoming an investment banking analyst is hard due to competitive recruiting, technical interviews, and high academic expectations.