Investment banking remains one of the most lucrative and demanding careers in finance. In 2025, the compensation landscape continues to reflect high earning potential, particularly in major financial hubs like New York, London, and Hong Kong. This guide explores the average investment banker salary in 2025, the factors that influence it, and what professionals can expect based on experience, education, and industry trends.
What Is the Average Investment Banker Salary in 2025?
As of mid-2025, the average investment banker salary in the United States is approximately $146,000 per year, with total compensation (including bonuses) often exceeding $200,000. Entry-level positions start lower but can quickly rise with performance and experience.
Base Salary vs. Total Compensation
Base Salary: $90,000–$150,000 (depending on role and firm)
Bonuses: Typically 30%–100%+ of base salary
Total Compensation for Analysts: $120,000–$180,000
Total Compensation for Associates: $180,000–$300,000
Managing Directors: Can earn $500,000–$1M+ with performance bonuses
Key Factors Influencing Investment Banker Salary
Several variables influence how much an investment banker earns in 2025:
1. Experience Level
Entry-Level (Analyst): $100,000–$150,000
Mid-Level (Associate/Vice President): $150,000–$300,000
Senior-Level (Director/Managing Director): $400,000–$1M+
2. Firm Size and Prestige
Top-tier firms (e.g., Goldman Sachs, Morgan Stanley) offer higher bonuses.
Boutique investment banks may offer competitive pay with more deal exposure.
3. Location
Salaries are highest in cities like New York, San Francisco, and London.
Cost of living often aligns with salary—e.g., NYC-based bankers may earn 15–25% more.
4. Education & Certifications
An MBA from a top-tier business school (e.g., Wharton, Harvard, INSEAD) can significantly boost starting offers.
Certifications like CFA or Series 7/63 may add to earning potential or advancement.
Salary by Experience Level
| Experience Level | Average Base Salary | Typical Bonus | Total Compensation |
|---|---|---|---|
| Analyst (0–2 yrs) | $100,000 | $40,000–60,000 | $140,000–160,000 |
| Associate (2–4 yrs) | $150,000 | $50,000–100,000 | $200,000–250,000 |
| VP (5–7 yrs) | $200,000 | $100,000–200,000 | $300,000–400,000 |
| Director/MD (8+ yrs) | $250,000+ | $300,000–800,000 | $550,000–1M+ |
Job Market Trends in 2025
1. Resilient Demand
Despite economic fluctuations, investment banking remains vital for capital markets and M&A activity. The demand for skilled bankers continues, particularly in:
Tech IPOs and SPAC activity resurgence
Renewable energy and ESG investments
Cross-border M&A in emerging markets
2. Hybrid Work Impact
Flexible models are now standard in many firms, though front-office roles still expect significant in-person time. Work-life balance has modestly improved, helping retention.
3. AI & Automation
AI tools are streamlining due diligence and financial modeling. While not replacing roles, they are reshaping how work is done—valuing analytical thinking more than rote tasks.
Benefits and Perks
Beyond salary, investment bankers often enjoy:
Performance bonuses
401(k) with firm matching
Private health insurance
Paid vacations (though often underused)
Access to elite networking and events
Some firms also offer sabbaticals, wellness stipends, and tuition reimbursement for continuing education.
Education and Certifications That Boost Salary
Recommended Education:
Bachelor’s Degree: Finance, Economics, Business, or STEM fields
MBA: Increases mid-level entry and long-term earnings potential
CFA: Particularly helpful for roles in capital markets and research
Licensing:
FINRA Series 7 and 63 licenses (for client-facing roles in the U.S.)
Final Thoughts: Is Investment Banking Still Worth It in 2025?
While the hours remain long and the work is intense, investment banking in 2025 continues to offer exceptional compensation and career growth. Professionals entering the field with strong academic backgrounds, networking skills, and technical expertise can expect a rewarding financial path.
Whether you’re a college student aiming for Wall Street or a mid-career professional considering an MBA pivot, understanding the salary landscape is crucial for making informed career decisions in investment banking.