Investment Banking Analyst Salary: Base + Bonus
Investment banking analyst salary broken down by year: base, bonus, and total comp, plus how pay scales and differs across bulge bracket and boutiques.
Apr 26, 2026 · 7 min read
A first-year investment banking analyst salary in New York runs a base of 100,000 to 125,000 dollars with total compensation of 165,000 to 225,000 dollars, according to Mergers & Inquisitions' 2026 report. Base pay rises each analyst year, and the bonus, which averages roughly 65 percent of base across firm tiers per Prospect Rock Partners' 2025 data, is the part that swings most. An investment banker salary at the analyst level is mostly set by your bank's tier and your performance bucket, not by negotiation. This guide breaks down base plus bonus by year, how comp scales past analyst, and how bulge brackets, elite boutiques, and middle-market firms differ.
TL;DR
- First-year analyst total comp is 165,000 to 225,000 dollars (Mergers & Inquisitions, 2026).
- Analyst base by year: 105,000 to 110,000 (AN1), 115,000 to 120,000 (AN2), 125,000 to 130,000 (AN3) per Prospect Rock.
- The bonus averages about 65 percent of base across all firm tiers (Prospect Rock, 2025).
- Top-bucket analysts earn 95 to 105 percent of base in bonus; low bucket gets 45 to 65 percent.
- Associate total comp jumps to 285,000 to 500,000 dollars (Mergers & Inquisitions).
What is an investment banking analyst salary?
An investment banking analyst salary is the total cash an entry-level banker earns, made up of a fixed base salary plus a variable year-end bonus. Analyst is the junior front-office role, typically held for two to three years out of undergrad before promotion to associate. Mergers & Inquisitions puts New York analyst total compensation at 100,000 to 125,000 dollars base and 165,000 to 225,000 dollars total, reflecting 2025 year-end bonus data, for the 25th to 75th percentile across large banks. The base is paid monthly and is roughly fixed across peer banks. The bonus is discretionary, paid once a year, and is where firm performance and your individual ranking show up.
How much does a first-year analyst make?
A first-year analyst (AN1) earns a base of about 105,000 to 110,000 dollars, per Prospect Rock Partners, with an average 2025 bonus of 62,000 dollars (range 49,000 to 90,000). That puts typical AN1 cash near the lower end of the 165,000 to 225,000 dollar total-comp band Mergers & Inquisitions cites for the analyst level.
The base is consistent across most large banks, so two AN1s at different bulge brackets earn nearly the same salary. The bonus is what separates them. Prospect Rock reports that bonuses average roughly 65 percent of base across firm tiers, but the spread is wide: a top-bucket AN1 can pull 95 to 105 percent of base in bonus, while a low-bucket AN1 gets 45 to 65 percent. Signing and relocation bonuses, which Mergers & Inquisitions excludes from its ranges, can add several thousand dollars in year one.
How does analyst pay scale by year?
Analyst pay climbs each year as base steps up and bonuses grow with experience and bucket. Prospect Rock reports a roughly 47 percent average jump in total pay from AN1 to AN2, driven mostly by a larger bonus rather than the base increase.
The table below shows base and average 2025 bonus by analyst year from Prospect Rock Partners, alongside the analyst-level total-comp band from Mergers & Inquisitions.
| Level | Base salary | Avg bonus (2025) | Source |
|---|---|---|---|
| AN1 | 105,000-110,000 | 62,000 | Prospect Rock |
| AN2 | 115,000-120,000 | 91,000 | Prospect Rock |
| AN3 | 125,000-130,000 | 90,000 | Prospect Rock |
| Analyst (total comp) | 100,000-125,000 base | 165,000-225,000 total | Mergers & Inquisitions |
Note the AN1 to AN2 step: Prospect Rock shows the average bonus rising from 62,000 to 91,000 dollars, an 11 percent year-over-year increase for AN2 bonuses between 2024 and 2025. By AN3, base and bonus plateau as analysts approach the associate promotion.
How does compensation grow past analyst?
Compensation roughly doubles at the associate level and keeps climbing through VP, director, and managing director. Mergers & Inquisitions puts associate base at 175,000 to 225,000 dollars and total comp at 285,000 to 500,000 dollars, with the biggest dollar jumps coming at the senior, revenue-generating levels.
The progression, per Mergers & Inquisitions' 2026 summary, runs: associate total comp 285,000 to 500,000 dollars, vice president 525,000 to 800,000 dollars, director or SVP 700,000 to 900,000 dollars, and managing director 1 to 2 million dollars or more. The report also references Wall Street Journal data showing median MD compensation "in the 1 to 2 million dollar range over multiple decades." Pay growth in 2025 was uneven by level: Mergers & Inquisitions notes analysts and associates rose about 5 percent, VPs and directors 10 to 15 percent, and MDs 25 percent or more. For how the role itself changes, see our investment banking career path overview.
How does pay differ across bank tiers?
Base salaries are nearly identical across bulge brackets, elite boutiques, and middle-market firms; the difference shows up in the bonus. Elite boutiques tend to pay top-of-market bonuses and often in 100 percent cash, while middle-market bonuses run a notch below bulge brackets.
Mergers & Inquisitions reports that top-ranked Year 1 analysts at elite boutiques like Lazard, Evercore, and Moelis earned 180,000 to 195,000 dollars total, comparable to bulge brackets, with Year 2 elite-boutique analysts reaching about 250,000 dollars. Prospect Rock's bucket data shows top-bucket bulge-bracket AN1 to AN2 bonuses of 85,000 to 105,000 dollars versus 75,000 to 100,000 dollars at middle-market firms, and notes bulge-bracket top performers earned more than 70 percent above regional equivalents. To understand the tiers themselves, read our bulge bracket vs elite boutique vs middle market breakdown. If you are still deciding why this path, our why investment banking answer guide helps frame it.
Frequently Asked Questions
How much does a first-year investment banking analyst make?
A first-year analyst in New York earns a base of about 105,000 to 110,000 dollars (Prospect Rock Partners) with total compensation of 165,000 to 225,000 dollars at the analyst level (Mergers & Inquisitions, 2026). The average 2025 AN1 bonus was 62,000 dollars, ranging from 49,000 to 90,000 dollars depending on performance bucket.
What is the bonus for an investment banking analyst?
The analyst bonus averages roughly 65 percent of base salary across firm tiers, per Prospect Rock Partners (2025). It varies sharply by bucket: top performers earn 95 to 105 percent of base, mid bucket 70 to 85 percent, and low bucket 45 to 65 percent. Average bonuses were 62,000 (AN1), 91,000 (AN2), and 90,000 dollars (AN3).
How much does an investment banking associate make?
An associate earns a base of 175,000 to 225,000 dollars and total compensation of 285,000 to 500,000 dollars, according to Mergers & Inquisitions' 2026 report. That is roughly double analyst pay, reflecting the step up in responsibility and the move toward managing deals and junior staff.
Do elite boutiques pay more than bulge brackets?
At the analyst level, base pay is similar, but elite boutiques often pay top-of-market bonuses in cash. Mergers & Inquisitions reports top Year 1 boutique analysts at Lazard, Evercore, and Moelis earning 180,000 to 195,000 dollars total, comparable to bulge brackets, with Year 2 analysts reaching about 250,000 dollars.
How much does a managing director make in investment banking?
Managing director total compensation is 1 to 2 million dollars or more, per Mergers & Inquisitions' 2026 summary, with base salary of 400,000 to 600,000 dollars. The report cites Wall Street Journal data showing median MD comp in the 1 to 2 million dollar range over multiple decades, though top rainmakers earn well beyond that.
Did investment banking pay go up in 2025?
Yes, but unevenly by level. Mergers & Inquisitions reports 2025 compensation growth of about 5 percent for analysts and associates, 10 to 15 percent for VPs and directors, and 25 percent or more for managing directors. Prospect Rock shows AN1 bonuses up 6.9 percent and AN2 bonuses up 11 percent year over year.
Sources
- Mergers & Inquisitions: Investment Banker Salary and Bonus Report 2026 (checked June 2026)
- Prospect Rock Partners: Investment Banking Analyst Compensation Report 2025 (checked June 2026)
- Wall Street Oasis: Compensation Benchmarking 2025 (checked June 2026)