Thinking about a career in investment banking? It’s one of the highest-paying jobs in finance.
So, what is the investment banker salary in USA? In 2025, the estimated total pay for an investment banker in USA is around $4,08,000 (₹3.4 Cr) per year. This includes an average base salary of $1,79,050 (₹1.49 Cr) and year-end bonuses that often double the base—especially in strong deal years.
Here’s what’s driving the numbers:
Base salaries stayed steady compared to 2024
Bonuses increased across most levels—by 10% to 15%
US investment banking revenue rose by 37% year-over-year
Most firms hire fresh graduates into analyst roles directly after college. First-year pay often touches six figures, and each promotion brings a steep jump in earnings. Top performers take home much more—especially those working on large M&A or IPO deals.
In this blog, you'll find:
Average investment banker salary in USA and bonus breakdown by experience level
Entry-level and senior role expectations
Which firms and cities offer the highest pay
What to know if you're applying from India or abroad
Let’s see how compensation works in banking—and what is needed to earn big in 2025.
MBA is a common route to investment banking. If that’s on your radar, check out this guide on Masters in the USA: Costs.
Planning your budget? Learn how much it really takes to complete an MS with this post on the Cost of MS in the USA.
Investment Banker Salary USA by Experience
Most investment bankers start right after college or an MBA, but what you earn depends on where you are in the ladder. In your first year, the bonus can match your salary. By year five, you’re likely managing deals. By year ten, you’re either leading a team—or thinking about switching firms for better carry or equity.
Entry-Level Investment Banker Salary USA (0–1 Year)
Fresh graduates often join as Analysts. Despite being early in their careers, they start with six-figure base salaries and high bonuses.
Component
Amount (USD + INR)
Base Pay
$100K–$200K (₹83L–₹1.67Cr)
Bonus Range
$100K–$200K (₹83L–₹1.67Cr)
Total Compensation
$200K–$400K (₹1.67Cr–₹3.34Cr)
Typical Title: Analyst Bonus structure depends on performance, team results, and market conditions.
Early Mid-Level Investment Banker Salary USA (1–3 Years)
At this stage, most professionals transition into Senior Analyst or Associate roles. Bonuses start to become more performance-based.
Component
Amount (USD + INR)
Base Pay
$100K–$200K (₹83L–₹1.67Cr)
Bonus Range
$100K–$300K (₹83L–₹2.5Cr)
Total Compensation
$200K–$500K (₹1.67Cr–₹4.17Cr)
Typical Title: Associate This phase often includes MBA grads or promoted analysts.
When planning to study abroad, scholarships can reduce the burden. Here’s a curated list of Scholarships for MS in USA available for Indian students.
Executive Level Investment Banker Salary USA (15+ Years)
Managing Directors and Partners often earn through revenue share, not just base and bonus. This level comes with high risk and high reward.
Component
Amount (USD + INR)
Base Pay
$200K (₹1.67Cr)
Bonus Range
$200K–$300K+ (₹1.67Cr–₹2.5Cr+)
Total Compensation
$400K–$500K+ (₹3.34Cr–₹4.17Cr+)
Typical Title: Managing Director / Partner Top MDs may earn over $1 million in strong years.
Investment Banker Salary USA by Job Titles and Roles
Your title in investment banking directly affects your paycheck. Each role comes with a set of expectations, workload, and compensation. From running spreadsheets as an Analyst to leading mergers as a Managing Director, every step up the ladder brings more pay—and more pressure.
Here's what different roles earn on average in USA in 2025:
Job Title
Typical Total Pay
Analyst (0–2 yrs)
$95K–$220K (₹80 lakhs–₹1.83Cr)
Associate (2–4 yrs)
$100K–$200K (₹80 lakhs–₹1.8Cr)
Vice President (4–7 yrs)
$200K–$300K (₹1.5Cr–₹4Cr)
Director (7–10 yrs)
$450K–$700K (₹3.75Cr–₹5.84Cr)
Managing Director (10+ yrs)
$700K–$1.5M+ (₹5.84Cr–₹12.5Cr+)
A Few Things to Know:
Analysts mostly handle financial modeling, research, and pitch books.
Associates lead junior teams, work directly with clients, and support deal execution.
VPs and Directors manage full deals, run client relationships, and mentor teams.
Managing Directors bring in deals. Pay depends heavily on performance and how much revenue they generate.
Want to move up faster? Strong deal experience, an MBA from a top school, and consistent performance reviews make a big difference.
Need to understand the academic journey? This post on the Education System in the USA gives a full picture of degree levels and grading.
Investment Banker Salary USA by Firm Type: Boutique vs Bulge Bracket
Where you start your investment banking career matters. Salary, exposure to deals, growth potential, and team size often vary based on the kind of firm you choose. Most roles fall under two main categories: bulge bracket banks and boutique (or elite boutique) firms.
What’s the Difference?
Bulge Bracket Banks are large, multinational institutions that offer a full suite of financial services. Think JPMorgan, Morgan Stanley, Citi, and Bank of America.
Boutique and Elite Boutique Banks focus primarily on advisory and M&A services. These include firms like Evercore, Lazard, Centerview, and Moelis. They often work on high-profile, high-value deals and allow team members to handle significant responsibilities early in their careers.
Salary Comparison: Boutique vs Bulge Bracket
Role
Bulge Bracket Pay (USD + INR)
Boutique Pay (USD + INR)
Analyst
$100K–$120K (₹83L–₹1Cr)
$110K–$130K (₹91L–₹1.08Cr)
Associate
$140K–$175K (₹1.16Cr–₹1.46Cr)
$150K–$180K (₹1.25Cr–₹1.5Cr)
Vice President
$200K–$250K (₹1.67Cr–₹2.08Cr)
$220K–$270K (₹1.84Cr–₹2.25Cr)
Director
$250K–$300K (₹2.08Cr–₹2.5Cr)
$275K–$325K (₹2.29Cr–₹2.71Cr)
Managing Director
$300K–$500K+ (₹2.5Cr–₹4.2Cr+)
$400K–$600K+ (₹3.34Cr–₹5Cr+)
What About Work-Life Balance?
Bulge Bracket: Larger teams, slightly more structured hours. Better internal support (analyst pools, compliance teams, HR).
Boutique: Smaller teams, more client ownership early on—but that also means longer hours. Pressure runs higher, especially during live deals.
Example Firms
Type
Firms
Bulge Bracket
Goldman Sachs, JPMorgan, Morgan Stanley, UBS
Elite Boutique
Evercore, Lazard, Centerview, PJT Partners
Middle-Market
Houlihan Lokey, Raymond James, Jefferies
Which Firm Aligns with Your Goals?
Looking for structured learning and global mobility? Bulge bracket banks offer that. Prefer early ownership and a faster-paced setting? Boutique firms provide more hands-on deal exposure from the start.
Each path has its strengths—your choice depends on where you see yourself growing.
Still exploring your options abroad? Here’s how the US compares with Germany for international students in USA vs Germany.
Investment Banker Salary USA by Location
Where you work can impact how much you earn as an investment banker. Financial hubs like New York, San Francisco, and Chicago offer higher compensation due to deal volume, firm headquarters, and client proximity.
Top-Paying Cities for Investment Bankers (USD/Year)
City
Average Salary (USD + INR)
Fremont, CA
$251,124 (₹2.09 Cr)
San Francisco, CA
$209,708 (₹1.74 Cr)
New York, NY
$195,141 (₹1.62 Cr)
Chicago, IL
$137,450 (₹1.14 Cr)
Des Plaines, IL
$100,761 (₹83.7 L)
Los Angeles, CA
$74,180 (₹61.6 L)
Pinole, CA
$66,595 (₹55.3 L)
Austin, TX
$54,018 (₹44.9 L)
Tampa, FL
$44,249 (₹36.7 L)
Note: INR conversion is based on an average exchange rate of $1 = ₹83.
Why the Difference?
Relocation to key markets like New York or San Francisco often comes with a salary premium. These cities are major deal-making centers, home to top banks and clients. However, cost of living is also significantly higher—especially for housing.
Some professionals opt for hybrid setups or regional offices to strike a balance between income and expenses.
Bonuses, Commissions, and Perks in Investment Banking
In investment banking, bonuses are a big part of your total pay. In fact, high performers often earn bonuses that rival or exceed their base salary.
Common Types of Bonuses
Bonus Type
Who Gets It
Typical Value
Signing Bonus
New analysts and associates
$10K–$25K (₹8.3L–₹20.8L)
Performance Bonus
All levels, based on individual/team ROI
50%–100% of base salary
Deal Bonus
Directors/VPs/MDs on large transactions
$50K+ (₹41.7L+) per major deal
Equity/RSUs
Managing Directors, partners
Profit-sharing, stock grants
Bonus Structure Snapshot
Analysts: Up to 80% of base salary
Associates: 0.8x–1.2x base salary
Vice Presidents: 1.0x–1.5x base salary
Managing Directors: 1.5x+ base salary + equity/perks
Why Performance Matters
A banker involved in high-value M&A deals or IPOs often receives higher year-end bonuses. Pay can vary within the same title—what matters most is the revenue you bring in.
Other Perks Include
All-expenses-paid travel
Meal allowances and black-car service
Private healthcare and wellness support
Paid MBAs for top-performing analysts
Want to earn more as an investment banker? Focus on consistent deal flow and performance targets.
Canada is also a top choice for finance students. Here’s a side-by-side on Canada vs USA to help you decide.
Still unsure if the US is the right place for you? This post on Why Study in USA breaks down academic, career, and salary potential.
Investment Banker: Career Path Map
Most investment banking careers follow a well-defined path. Promotions are tied to deal performance, networking, and leadership potential. Here's what the growth ladder looks like.
Career Progression in Investment Banking
Level
Avg. Years
Total Comp (USD + INR)
Analyst
2–3 years
$150K–$250K (₹1.25Cr–₹2.08Cr)
Associate
3 years
$250K–$400K (₹2.08Cr–₹3.33Cr)
Vice President
3–4 years
$400K–$700K (₹3.33Cr–₹5.8Cr)
Director
2–3 years
$600K–$1M+ (₹5Cr–₹8.3Cr+)
Managing Director (MD)
5–7 years
$1M–$2M+ (₹8.3Cr–₹16.6Cr+)
Partner
Varies
$2M+ (₹16.6Cr+) + equity/profit share
What to Expect at Each Stage
Salary jumps are sharp after Associate level
Director to MD is a competitive leap—requires consistent deal wins
Partners are rare and often have 15+ years in the field
Career Opportunities After Investment Banking
Many professionals transition out of IB after 5–8 years. Long hours and intense deal pressure can push people toward new paths—often with great results.
What’s Next After Investment Banking?
Career Move
Why It Appeals
Avg. Salary (USD + INR)
Private Equity
Use deal skills on the buy-side
$300K–$600K+ (₹2.5Cr–₹5Cr+)
Venture Capital
More innovation-focused, flexible culture
$200K–$500K (₹1.6Cr–₹4.1Cr)
Hedge Funds
High-reward, performance-based payouts
$400K–$1M+ (₹3.3Cr–₹8.3Cr+)
Startups/CFO roles
Hands-on impact, equity potential
$150K–$300K + stock options (₹1.2Cr–₹2.5Cr)
Consulting
Client exposure, better hours, exit versatility
$180K–$300K (₹1.5Cr–₹2.5Cr)
When Should You Switch?
After Associate or VP level is most common
Many switch to balance lifestyle with long-term wealth
Exit firms often value the discipline, speed, and analytical mindset of ex-bankers
Wondering if IB is sustainable long term? It can be—for the right profile. But there are strong off-ramps into roles where your skills remain valuable and pay remains competitive.
Top Companies Hiring Investment Bankers in USA
Where you work decides everything—your paycheck, learning curve, and how fast you grow. Some banks offer better bonuses. Others provide more stable work hours or a wider range of deals.
Here’s a quick look at leading firms hiring investment bankers in USA in 2025:
Company
Median Pay (USD + INR)
Known For
Goldman Sachs
$4L (₹3.34 Cr)
Fast-paced teams, top-tier global deals
JPMorgan Chase
$3L (₹2.5 Cr)
Strong training, diverse clients
Morgan Stanley
$3L (₹2.5 Cr)
Deep USA market exposure, consistent growth
Bank of America
$2L (₹1.67 Cr)
Balanced workload, solid brand value
Credit Suisse
$3L (₹2.5 Cr)
Lean teams, faster responsibility
Deutsche Bank
$3L (₹2.5 Cr)
USA-Europe transactions, sector diversity
Piper Sandler
$3L (₹2.5 Cr)
Mid-size projects, sector-specific focus
UBS
$3L (₹2.5 Cr)
Strong cross-border M&A opportunities
Wells Fargo
$3L (₹2.5 Cr)
Flexible roles, focus on advisory deals
Goldman Financial
$23T/month (₹19.2L)
Results-driven pay, smaller team structure
What’s the work culture like?
Top-tier banks like Goldman and JPMorgan offer global exposure, large client accounts, and fast-paced workdays.
Mid-tier and boutique firms provide tighter teams and direct client interaction early on.
Most companies offer benefits like relocation support, bonus-linked rewards, mental wellness programs, and team offsites.
Several firms are allowing hybrid schedules or city-specific flexibility, especially post-2024.
Thinking about where to apply? Choose a firm based on what matters to you: deal volume, learning pace, or lifestyle fit.
How to Become an Investment Banker in USA
Investment banking is one of the most structured career paths in finance. Most firms follow a predictable hiring pattern, especially at the entry level. Here’s what you’ll need to work toward if you're serious about getting in:
Step-by-Step Guide
Step
What You Need to Know
Get a Relevant Degree
A bachelor’s in finance, business, economics, or accounting is usually expected. Target schools like NYU, Wharton, or Columbia give you an edge.
Build Core Finance Skills
Learn Excel, financial modeling, valuation methods, and accounting. Most interviews test these areas.
Intern During College
Summer internships are often the main pipeline to full-time roles. Many banks hire almost entirely from their intern pools.
Network Early
Reach out to alumni, attend finance club events, and stay active on LinkedIn. Many off-cycle roles go to those with good connections.
Consider an MBA (for Mid-Level)
Most professionals move from Analyst to Associate after an MBA from a top business school. It also opens doors to leadership roles faster.
Tip: You don’t need to wait for graduation to start. Even first-year students can join finance clubs, attend networking events, and learn Excel modeling on the side.
How upGrad Helps You Start a Career in Investment Banking
If you’re aiming for investment banking, it helps to have the right prep, especially if you’re not from a target school or don't have access to big-city networking events.
upGrad Abroad offers practical tools to help you build your profile for USA market:
Study plans, GMAT tips, and practice tests tailored to top B-schools
Understand how long it takes to recover your tuition through post-MBA salaries
Mock interviews, resume reviews, and one-on-one mentorship with finance experts
Wondering if an MBA is worth it? Graduates from top USA B-schools often start with salaries above $150,000 (₹1.25 Cr), plus bonuses. But it depends on where you study and what skills you bring to the table.
Want to plan your move into investment banking? Check how upGrad Abroad can guide your next step.
Is the Investment Banker Salary USA Worth It in 2025?
The hours are long, and the pressure is real—but so are the returns. If you’re someone who can handle high-stakes work and wants to build a career in finance, this path offers strong growth. The investment banker salary USA shows that the payoff is there, especially if you aim to move into private equity or leadership later.
FAQs About Investment Banker Salary USA in 2025
What’s the starting salary for an investment banker in US?
First-year analysts at top investment banks earn a base salary between $110,000 and $125,000 (₹92 lakh–₹1.05 crore), with bonuses adding another $50,000–$70,000 (₹42–₹59 lakh).
Do investment bankers really earn millions?
Yes—but mostly at the Managing Director (MD) level or in senior leadership. Total comp (base + bonus + stock/equity) can exceed $1–$3 million (₹8.4–₹25 crore) annually in large firms.
How are bonuses calculated in investment banking?
Bonuses are tied to deal flow, performance, team revenue, and seniority. At analyst level, bonuses can be 80–120% of base salary if the bank performs well.
What’s the pay difference between NYC and other cities?
NYC pays the highest due to deal volume and cost of living. Other financial hubs like San Francisco and Chicago pay slightly less but still offer six-figure packages.
Do MBAs always earn more in investment banking?
Generally, yes. Post-MBA associates earn around $175,000–$200,000 (₹1.47–₹1.68 crore) base salary, with bonuses pushing total comp close to $250,000–$300,000 (₹2.1–₹2.52 crore).
Can international students become investment bankers in USA?
Yes, but it’s competitive. A top-tier MBA or undergrad from a US school and a firm that sponsors H-1B visas is often required. Networking and internships matter a lot.
Which schools give the best chance to land high-paying roles?
Ivy League schools (Harvard, Wharton, Columbia), NYU Stern, Chicago Booth, and Stanford have strong IB placement. Recruits often come from these target schools.
Is the work-life balance worth the salary?
It depends on your tolerance. Early-career bankers often work 70–90 hours/week. The pay is high, but burnout is common, especially in large deal teams.
How often do promotions happen in investment banks?
Typical track:
Analyst to Associate: 2–3 years
Associate to VP: 3–4 years
VP to Director/ED: 2–3 years
Director to MD: variable, often 5+ years
Do boutique firms offer bonuses too?
Yes. While base salaries may be slightly lower, high-performing boutiques often pay bonuses equal to or higher than larger banks—especially on lean deal teams.
Are salaries in private equity higher than investment banking?
Yes, over time. Private equity roles often pay slightly less in the early years but offer bigger carried interest or equity upside long-term, especially in partner roles.
Can I switch to IB from another finance role?
Yes, especially from roles like corporate finance, Big 4 transaction advisory, or equity research. You may need an MBA or lateral hiring opportunity at a smaller bank.
What’s the highest-paying investment bank in 2025?
Firms like Evercore, Centerview, Goldman Sachs, and Morgan Stanley continue to offer the highest total compensation, especially at the VP and MD levels.
Are there any remote roles in investment banking?
Rarely. Investment banking relies on in-person client meetings, team collaboration, and on-site deal execution. Hybrid options may exist in support functions, not front-office roles.
How much can a Managing Director earn including bonuses?
A top MD at a major US investment bank can earn $1.5M–$3M+ (₹12.6–₹25 crore) per year, depending on deals closed, bonus pool, and equity stake.
We are a dedicated team of study-abroad experts, ensuring intensive research and comprehensive information in each of our blogs. With every piece written, we aim at simplifying the overseas education process for all. Our diverse experience as journalists, content writers, editors, content strategists, and marketers helps create the most relevant and authentic blogs for our readers.
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