Investment Banker Salary
Average Salary of an Investment Banker in the USA | 2025
Thinking of becoming an investment banker or unsure about your current pay?
This blog will show you exactly what investment bankers earn in 2025. We will look at real numbers from top job sites and Wall Street reports. You'll learn about pay by experience level, location, and bonuses. We'll also share tips to grow your salary.
By the end, you'll know if investment banking is worth the long hours and stress.
What's the Average Salary of an Investment Banker in the USA?
$180,000 per year (Average)
We looked at data from top sites like Glassdoor, PayScale, Indeed, and Salary.com. Glassdoor shows a total pay of $363,355. PayScale lists a base salary of $115,461. Indeed reports $130,652, while Salary.com shows $166,838.
We calculated the average by examining thousands of salary reports and removing outliers. The wide range comes from different ways sites count bonuses and total pay packages.
Compared to 2024 data, investment banker salaries have grown by about 10-15% this year. Wall Street's pay outlook for 2025 looks bright. Investment banking debt underwriters expect their year-end bonuses to increase by 25% to 35%.
Investment Banker Salary Key Metrics 2025
Average salary: $180,000 per year
This combines base salary data from PayScale, Indeed, Salary.com, and ZipRecruiter platforms.
Salary range: $96,000 to $500,000+
Entry-level bankers with less than 1 year of experience earn about $96,000. In contrast, vice presidents can earn over $500,000.
The huge range depends on your level, bank type, and performance.
Salary by experience:
Entry-level Analyst (0-2 years): $100,000 - $150,000 base
Associate (2-4 years): $175,000 - $225,000 base
Vice President (4-7 years): $250,000 - $350,000 base
Senior VP/Managing Director (7+ years): $400,000+ base
75th percentile: $268,853
This means that 25% of investment bankers earn more. This data is from Salary.com.
Investment Banker Salary Regional Comparison
Location makes a huge difference in investment banking pay.
New York City pays the most because it's the center of Wall Street. London and Hong Kong also pay well for international markets. However, living costs in these cities are very high. Some smaller financial centers offer good pay with lower living costs.
Here's how salaries compare across major financial hubs:
New York City offers the highest pay but has very high living costs and taxes. Charlotte provides good value for banking roles with lower living expenses. International markets like London and Hong Kong offer good pay, plus global experience.
6 Tips to Grow Your Investment Banker Salary
1. Get Your CFA Charter: CFA-certified investment bankers usually earn 15-20% more than those without the certification. The CFA shows you understand finance deeply. Start studying for Level 1 as soon as possible.
2. Move to a Top-Tier Bank: Bulge-bracket banks like Goldman Sachs and JPMorgan pay more than smaller firms. Elite boutique banks offer great pay. Year 1 Associates at firms like Lazard can earn over $300K in total compensation. Apply to the biggest names in banking.
3. Focus on High-Revenue Deals: Work on mergers, acquisitions, and IPOs. These deals bring in the most money for banks. Teams that close big deals get bigger bonuses. Show your boss you can handle important clients.
4. Build Strong Excel and Financial Modeling Skills: Investment bankers who create complex models quickly advance in their careers. Take advanced Excel courses and practice building merger models. This skill separates good bankers from great ones.
5. Network with Senior Bankers: Many analysts get promoted to associate after two years. Compensation then rises significantly to over $250k. Build relationships with VPs and Managing Directors. They control promotions and bonus decisions.
6. Consider Moving to Private Equity: After 2-3 years in investment banking, private equity firms pay even more. PE professionals often earn $300,000+ in total compensation. Use your banking experience to make this jump.
FAQs About Investment Banker Salaries
Is the average salary of an investment banker before or after taxes?
All salary numbers in this article are gross annual salaries before taxes. Your take-home pay will be less after federal, state, and local taxes, which can be 35% to 40% in high-tax states.
Does the average investment banker's salary include bonuses?
No, base salaries don't include bonuses. Most analysts get year-end bonuses between $70,000 and $90,000. Top performers can earn bonuses of up to $100,000. Bonuses often equal or exceed base pay.
What affects an investment banker's salary the most?
Your level (analyst, associate, VP), bank type (bulge bracket or boutique), location, and performance are key. As analysts advance to associate and vice president roles, salaries can double or triple.
How much do entry-level investment bankers make?
Entry-level analysts can earn base salaries between $70,000 and $100,000. Total compensation may even hit $200,000 in the first year. This includes base salary plus bonus.
Do investment bankers get paid more than other finance jobs?
Yes, investment bankers usually earn more than other finance professionals. However, they often work much longer hours, sometimes 80 to 100 hours a week. The high pay comes with high stress and demanding schedules.
How often do investment bankers' salaries increase?
Most bankers see big salary jumps when they get promoted every 2-3 years. Bank of America plans to increase its bonus pool by 10% for 2025, showing that pay is rising across the industry.
Can investment bankers work remotely and still earn high salaries?
Most investment banking jobs require you to be in the office. This is important for client meetings and deal work. Remote work is rare in this field, unlike other finance jobs.
What's the difference between an investment banker's salary at big banks vs small banks?
Big banks (Goldman Sachs, JPMorgan) typically pay 20-30% more than smaller regional banks. However, smaller banks may offer a better work-life balance and faster promotion opportunities.
Note: All pay information is current as of 2025. Data comes from different global salary surveys and government stats, 2025.
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