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Finance2025

Investment Banker Salary in the USA

Investment bankers advise companies on mergers, acquisitions, and capital raising. They structure deals, conduct due diligence, and manage client relationships.

Average Salary
$175,000
per year
Entry Level
$100,000
starting salary
Experienced
$175,000
mid-career
Senior Level
$350,000
top earners

Investment Banker Take Home Pay

On the average Investment Banker salary of $175,000, you would take home $130,366 per year ($10,863.79 per month) after federal tax and FICA.

Yearly
Gross: $175,000.00
$130,365.50
Federal Tax:-$31,247.00
FICA (SS + Medicare):-$13,387.50
Monthly
Gross: $14,583.33
$10,863.79
Federal Tax:-$2,603.92
FICA (SS + Medicare):-$1,115.63
Weekly
Gross: $3,365.38
$2,507.03
Federal Tax:-$600.90
FICA (SS + Medicare):-$257.45

Effective tax rate: 25.5%|Marginal rate: 24%

Investment Banker Salary by Location

Investment Banker salaries vary significantly by region. California and New York typically offer the highest salaries but also have higher costs of living and state income taxes.

New York
$225,000
+55% vs national
California
$195,000
+34% vs national
Texas
$150,000
+3% vs national
National Average
$145,000
baseline

Investment Banker Salary Growth (2020-2025)

See how Investment Banker salaries have changed over the past 5 years, including inflation-adjusted real growth.

Investment Banker Salary Trends (5 Years)
Historical salary data from 2020 to 2025

+22.8%

Total Growth

+$32,503

Salary Increase

+4.2%

Annual Growth Rate

-1.2%

Real Growth (Inflation Adj.)

Year-over-Year Changes

20202021
$142,497$146,772+3.0%
20212022
$146,772$155,578+6.0%
20222023
$155,578$162,579+4.5%
20232024
$162,579$169,082+4.0%
20242025
$169,082$175,000+3.5%

Key Skills Required

Financial ModelingValuationDeal StructuringClient ManagementNegotiationPresentation

Typical Qualifications

  • Finance, Economics, or Business degree
  • Strong academics
  • CFA or MBA (beneficial)

Investment Banker Career Progression

Analyst
Associate
Vice President
Director
Managing Director

What Does a Investment Banker Do?

Advising on M&A transactions
Raising capital through debt and equity
Building financial models
Conducting due diligence
Managing client relationships

Industries Hiring Investment Bankers

Bulge Bracket BanksBoutique BanksMiddle Market Banks

Calculate Your Take Home Pay

Adjust the salary and see your personalized take-home pay calculation.

Your Income

Enter your salary details for 2025

$
$

✓ No state income tax

$0/yr

Pre-tax contribution (max $23,500 in 2025)

$0/yr

Pre-tax health savings (max $4,300 self / $8,550 family)

Take Home Pay

$130,365.50/year

74.5% of gross income

  • Gross Income$175,000.00
  • Taxable Income$160,000.00
  • Federal Tax-$31,247.00
  • State Tax (TX)-$0.00
  • Social Security-$10,850.00
  • Medicare-$2,537.50
  • Total Deductions-$44,634.50

25.5%

Effective Rate

24%

Marginal Rate

$175,000 Salary Insights

Compare your salary and understand your tax breakdown

$175,000 vs US Wages

Top 5% of US earners

+194%

vs US Median

$115,460

Above Median

Where Your $175,000 Goes

Annual breakdown of your salary

Take Home74.5%
Federal Tax17.9%
Social Security6.2%
Medicare1.5%

401(k) Tax Benefits on $175,000

See how 401(k) contributions reduce your tax bill

Increase your 401(k) contribution to see potential tax savings. Max contribution for 2025 is $23,500.

Investment Banker Salary FAQ

What is the average Investment Banker salary in the US?

The average Investment Banker salary in the US is $175,000 per year. Salaries typically range from $100,000 for entry-level positions to $400,000 for senior roles.

How much does a Investment Banker earn in California?

A Investment Banker in California earns an average of $195,000 per year, which is 34% higher than the national average.

What is the take-home pay for a Investment Banker?

On the average Investment Banker salary of $175,000, you would take home approximately $130,366 per year ($10,863.79 per month) after federal income tax and FICA taxes.