Investment banker salary: how much does an investment banker make?
At large New York banks, a first-year investment banking analyst earns a $110,000 base salary and about $160,000–$210,000 with bonus. Associates make $275,000–$500,000 all-in, vice presidents $450,000–$700,000, and managing directors $800,000 to well over $2 million, with most of the increase coming from the bonus.
Investment banker salary by level
Bulge-bracket banks, New York, 2026 estimates (middle 80% of outcomes):
| Level | Base salary | Total pay with bonus |
|---|---|---|
| Analyst 1 | $110,000 | $160,000–$210,000 |
| Analyst 2 | $120,000–$125,000 | $190,000–$255,000 |
| Analyst 3 | $130,000–$135,000 | $220,000–$295,000 |
| Associate 1 | $175,000 | $275,000–$350,000 |
| Associate 2 | $200,000 | $325,000–$425,000 |
| Associate 3 | $225,000 | $375,000–$500,000 |
| Vice president | $250,000–$300,000 | $450,000–$700,000 |
| Director / SVP | $300,000–$350,000 | $550,000–$850,000 |
| Managing director | $400,000–$600,000 | $800,000–$2,600,000+ |
A second survey lines up closely: Prospect Rock Partners' 2025 report (published March 2026) puts analysts at about $160,000 to $200,000, associates at $265,000 to $438,000, VPs at $500,000 to $650,000 and the average MD at about $1.1 million in total compensation (eFinancialCareers, June 2026).
How the bonus works
Base salary is set by level; the year-end bonus moves with deal activity and individual ranking. In the table, a first-year analyst's bonus works out to about $50,000 to $100,000 on a $110,000 base, while at MD level the bonus can be several times base. Mergers & Inquisitions' 2026 report found senior bankers' pay rose faster than analysts' and that boutiques can pay associates up to $100,000 more than large banks. London and Hong Kong pay is typically 20% to 30% lower in absolute terms,.
What BLS reports
BLS doesn't publish investment bankers separately. They fall in the broader group of securities, commodities and financial services sales agents, which also includes brokers and traders: 489,570 jobs, mean pay $109,150 and a median of $37.82 an hour (about $78,666 a year) in May 2025. That group's pay is far lower than investment banking because most of its workers are retail brokers and sales agents.
Investment Banker take-home pay by state (2026)
2026 federal brackets and standard deduction, Social Security 6.2% up to $184,500, Medicare 1.45% plus 0.9% above $200,000 ($250,000 joint), and each state's 2026 income tax. Local income taxes, state disability or paid-leave payroll taxes and other deductions are not included. Estimate only, not tax advice.
Common questions
How much does an investment banker make?
First-year analysts earn about $160,000–$210,000 with bonus ($110,000 base); managing directors typically earn $800,000 to more than $2 million.
How much does a first-year investment banking analyst make?
A $110,000 base salary at large banks in New York, about $160,000–$210,000 including bonus.
How much does an investment banking associate make?
About $275,000–$350,000 all-in in the first year as associate, rising to $375,000–$500,000 by year three.
How much does a managing director make?
Roughly $800,000 to over $2.6 million; Prospect Rock Partners' 2025 average was about $1.1 million.
Is investment banking pay mostly bonus?
At junior levels base and bonus are similar in size; by VP and MD the bonus is the larger share.
Sources
- Wall Street Playbook: Bulge bracket salary 2026
- eFinancialCareers: Investment banking pay in 2026
- BLS: Occupational Employment and Wages, May 2025 (news release)
Related
Last reviewed November 5, 2026. Banking pay figures are estimates from compensation surveys and salary databases, not official statistics; actual offers vary by bank, group and year. Figures are gross pay before taxes and benefits. General information, not career or financial advice.