Last updated on October 23rd, 2024 at 03:39 pm
In this article we discuss the financial modelling salary in India, with examples and real job descriptions.
Factors Affecting Financial Modeling Salaries
There is no benchmark or blanket compensation that is common accross companies. So let me give you two different ways of looking at it;
Two Factors that dictate the compensation
So, now that we know the basics of what this job is all about and what are the various requirements. Now, it’s time to get into the real question, what are the financial modelling salary ranges?
So let me first classify the financial modelling salary for freshers basis the industry and Tier of companies. This means the salary also depends on the size of the company that you are in.
| Salary Ranges | Tier 1 | Tier 2 | Tier 3 |
| Equity Research | 6 -7 LPA | 4-5 LPA | 2 -3.5 LPA |
| Private Equity | 10 -12 LPA | 5-6 LPA | |
| Project Finance | 7-8 LPA | 5-6 LPA | |
| Investment Banking | 10 -12 LPA | 5-6 LPA | 2 -3.5 LPA |
| Wealth Management | 5-6 LPA | 4-5 LPA | |
| Risk Management | 12-15 LPA |
Experience: The biggest deciding factor is experience. In this industry experience is like gold. The more you have it, the better opportunities.
Company type: Whether the company is the likes of Goldman Sachs, Crisil, Evalue serve or are they tier 2 companies which are smaller in size.
Jobs That Demand Financial Modelling Skill
What many still overlook is that no matter which academic background you come from, financial modelling skill is the baseline requirement.
Let me give some examples of roles which require this skill;
- Financial Analyst
- Business Analyst
- Corporate Finance
- Credit Analyst
- Merger and Acquisition Associate
- Investment Banking Analyst or Associate
- Financial Planning and Analysis
- Equity Research Analyst or Associate
The salaries for candidates pursuing FM could very much depend on factors like experience, industry, size of the company, job role, and location.
Type of Financial Modeling Skills Used in Various Roles
Below I have created a table which shows, the various areas of the broader financial modeling skill which gets used for different roles.
| Role | Three-Statement Modeling | Discounted Cash Flow (DCF) | Sensitivity Analysis | Scenario Analysis | Valuation Techniques | M&A Modeling | Risk Analysis | Budgeting/Forecasting | Data Analysis | Reporting |
|---|---|---|---|---|---|---|---|---|---|---|
| Financial Analyst | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | |
| Business Analyst | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | |||
| Corporate Finance | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | |
| Credit Analyst | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | |
| Merger and Acquisition Associate | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Investment Banking Analyst/Associate | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Financial Planning and Analysis | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ||
| Equity Research Analyst/Associate | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
Financial Modeling Salary Calculator
Based on salary survey reports conducted by recruitment agencies in India, we have designed this salary calculator. Which should give you a good estimate of expectation.
Financial Modeling Salary Calculator
Now, look at how well a fresher level employee gets compensated for risk mangement positions at Company like Credit suisse
Financial Modeling Average Fresher Salary by Qualification
| Qualification | Average Salary (₹ Lakhs per annum) | Explanation |
|---|---|---|
| Undergraduate Degree (B.Com, BBA, etc.) | 3 – 6 | Fresh graduates with a bachelor’s degree typically start in entry-level roles such as analysts or junior analysts. |
| Postgraduate Degree (MBA, M.Com, etc.) | 7 – 12 | Postgraduates, particularly those with an MBA in finance from a reputed institution, usually command higher starting salaries due to advanced knowledge. |
| Professional Certifications (CFA, CA, etc.) | 8 – 15 | Candidates with professional certifications like CFA or CA are preferred for specialized roles and can expect higher starting salaries due to focused expertise. |
| Engineering Graduates with Finance Specialization | 5 – 9 | Engineering graduates with finance electives or certifications can find opportunities in financial modeling or quantitative analysis roles in investment banking. |
| International Degrees (e.g., MS in Finance, MBA from international institutions) | 12 – 20 | Candidates with international degrees from well-known institutions can secure higher starting salaries due to global exposure and advanced skill set. |
Financial Modeling Salary for Freshers in India
| Company Name | Salary Range (₹ Lakhs/Year) | Average Salary (₹ Lakhs/Year) |
|---|---|---|
| Goldman Sachs | 20 – 30 | 23.7 |
| JPMorgan Chase & Co. | 20 – 30 | 22.2 |
| HSBC Group | 10 – 20 | 17.7 |
| Barclays | 10 – 20 | 13.9 |
| Crisil | 0 – 5 | 10.3 |
| FactSet | 5 – 10 | 12.2 |
| Morningstar | 5 – 10 | 13.3 |
Financial Modelling Salary with Mentormecareers
Real Life Testimonies by Analysts
Equity Research
“Salaries are proportionate to experience with regards to finance industry. Generally speaking a good career should value each year for INR 2.5 Lacs. So if you are at 10 years experience then the financial modelling salary should be somwhere around 24 Lacs”
Shashank Yadav,CFA, AVP, Kroll
Risk Management
In my experience salaries are dictated by a persons intiative and interest to learn in an organisation. Qualification gives you the platform and knowledge to back it up
Sandeep Aggarwal, CFA, FRM
Credit Research
I worked in credit but was intially into sales but later with the sales experience and knowledge of CFA plus the skills of financial modelling I was able to grow
Nikhil Jain, Ex AVP,Crisil
Conclusion
Financial modelling is an ever green skil in finance and will remain so in the future too. A single word of advice for every candidate aspiring to progress in finance to learn this skill and practice continuously. In the longer run the perspective will get build and you wont regret learning this skill
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Frequently Asked Questions- FAQ’s
Financial Modelers can earn different salaries based on their experience and background but a fresh financial modeler with graduation can start his career with around 4-5 Lacs INR P.A
If the MBA is from Tier 1 business schools then you can start from anywhere between 12 -15 Lacs P.A
Although hyderabad is low on core finance financial modeling jobs but still at a fresher level, one could expect around 4.5 Lacs to begin with.
The Financial modelling salary per month for freshers with undergraduate degree should be around INR 30,000 to INR 35000.
