Financial modelling is an essential skill for finance professionals. It plays a key role in company analysis and forecasting. Businesses rely on financial models to make strategic decisions. Many finance roles, especially in investment banking and consulting, require it. Skilled professionals who master financial modelling are highly sought after.
The salary for financial modelling roles varies significantly in India. Factors such as experience, industry, and employer reputation influence pay. Freshers may start with decent packages, while senior professionals earn more. Those working in investment banking or private equity often command higher salaries. As demand for financial modelling expertise grows, salary prospects improve.
This blog explores all questions related to “What is financial modelling salary”and even covers career growth prospects in detail.
Factors Influencing Financial Modelling Salaries
Several elements can impact compensation in financial modelling roles:
- Educational background: Higher qualifications, like an MBA or CFA, lead to better salaries. Certifications such as FRM or CPA add credibility and boost earning potential. Employers prefer candidates with strong financial knowledge and technical expertise.
- Industry sector: Investment banking, private equity, and consulting offer the highest salaries. Corporate finance and startups may pay less but provide hands-on experience. High-growth sectors like fintech also offer competitive compensation.
- Geographical location: Major financial hubs like Mumbai and Bengaluru offer higher salaries. These cities host top investment banks, private equity firms, and consulting firms. Smaller cities generally have lower pay due to fewer opportunities.
- Company size and reputation: MNCs and global investment banks provide better salaries and benefits. Smaller firms may offer lower pay but faster career growth. Established companies also provide bonuses and structured promotion paths.
What Is Financial Modelling Salary In India?
Here’s all you need to know about the pay packages of financial modelling experts in India:
Entry-Level Salaries
- Fresh Graduates: Individuals beginning their careers in financial modelling can expect an average annual salary ranging from ₹4.2 L/yr – ₹7 L/yr. This range varies based on educational background and the hiring organisation’s stature.
- Investment Banks: Top-tier investment banks, such as Goldman Sachs and JPMorgan Chase & Co., offer competitive starting salaries. Freshers in these institutions can earn between ₹1.6 L/yr – ₹75 L/yr.
- Financial Firms: Smaller financial firms may offer starting salaries ranging from ₹1.2 L/yr – ₹4 L/yr.
Mid-Level Salaries (3-5 Years Experience)
- Senior Analysts and Associates: Professionals with 3 to 6 years of experience in investment banking can anticipate salaries between ₹3.6 L/yr – ₹17.2 L/yr.
- Private Equity Firms: These firms offer competitive compensation, typically ranging from ₹4 L/yr – ₹45 L/yr for mid-level roles.
- Big Four Consulting Firms: Companies like Deloitte, PwC, EY, and KPMG offer salaries between ₹10 L/yr – ₹32.5 L/yr for roles requiring financial modelling expertise.
Senior-Level Salaries (7+ Years Experience)
- Senior Professionals in Investment Banking and Private Equity: With over seven years of experience, individuals can earn between ₹5.3 L/yr – ₹50 L/yr.
- Leadership Roles: Positions such as Vice Presidents (VPs) and Chief Financial Officers (CFOs) can command salaries exceeding ₹90 L/yr.
- Private Equity Professionals: Senior roles in private equity may earn salaries upto ₹45 L/yr or more, with performance-based bonuses potentially increasing total earnings.
Conclusion
Financial modelling opens doors to senior roles and with this qualification you have the potential to earn competitive salaries in India. The pay depends on experience and industry. Investment banks and PE firms pay the best. That is why, many professionals tend to move into investment banking, private equity and venture capital.
You also have great potential to become corporate finance leaders if you have the necessary qualifications, skills and experience. Remember that upskilling helps professionals secure better-paying roles and continuous learning is key to higher salaries.
You can easily take up an online financial modelling course to take your career trajectory to greater heights, especially if it hits a growth plateau. The WallStreet School is a renowned online learning platform that offers industry-relevant training designed by experienced professionals. Their courses provide hands-on expertise, helping you build financial models and secure high-paying roles in investment banking, private equity, and corporate finance.
FAQs
- Does financial modelling require an MBA for a good salary?
An MBA is helpful but not mandatory. Strong skills and certification can lead to high salaries. Many professionals without an MBA secure top-paying roles through hands-on expertise. Practical experience in building financial models is often more valuable than a degree.
- Which industry pays the highest salary for financial modelling?
Investment banking and private equity firms offer the best salaries. Consulting and corporate finance roles also pay well. Hedge funds and asset management firms provide lucrative opportunities for skilled professionals. High salaries often come with performance-based bonuses and incentives.
- What are the job roles available for financial modelling experts?
Common roles include investment banking analyst, financial analyst, and valuation consultant. Other positions include corporate finance associate, equity research analyst, and M&A advisor. Startups and fintech companies also hire financial modelling experts.
