Business analysts work to make the corporate world operate smoothly. Their roles cover a range of functions from helping companies increase productivity to ironing out distribution details or devising creative technological solutions.
Business analysts’ salaries are contingent on a variety of factors, such as education level, experience, job function, location and company size. The term “business analyst” is relatively broad, encompassing general analysts in the early stages of their professional careers to specialized consultants with decades of experience and more.
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As of May 2020, the median salary for business analysts was $87,660 per year, according to O*NET OnLine (O*NET). However, the breadth of roles found in the field makes it difficult to pin down a typical business analyst salary. It’s possible to gain a better understanding of what a business analyst may earn by taking into account the variety of roles in different industries as well as discrepancies in salaries among analysts at different stages of their careers. Location also plays a role in determining business analysts’ salaries, as some areas of the country present opportunities for higher pay.
Business Analyst Salary by Experience
Experience plays an important role in determining a business analyst’s salary and can generally be broken down into entry-level, junior-level and senior-level positions. Different organizations will define these categories differently. Business analyst salaries for entry-level positions are likely to be less than salaries for higher-level positions. A senior business analyst salary will likely be more.
Whether a business analyst is considered entry-level, junior-level or senior-level is usually determined by their experience in the field as well as whether they hold an advanced degree, such as a master’s in business analytics. It’s also important to note that businesses and organizations may define the three categories differently, which business analysts should consider when searching for job opportunities and researching earning potential.
As of May 2020, business analysts in the highest 10% of earners for their position take home at least $156,840 per year while those in the lowest 10% earn $50,990 or less per year, according to O*Net OnLine. Though business analysts can potentially earn a higher salary as they progress in their careers, doing so often means taking on increased responsibility, learning new skills and expanding their scope of knowledge and expertise through coursework, such as pursuing an online master’s in business analytics.
Entry-Level Business Analyst Salary
For those in the early stages of their careers as business analysts, there are several job options available. These positions may offer the opportunity to begin applying business analytics skills, learn the ins and outs of the business analytics world and start moving forward professionally. Those who are interested in business analytics but have no experience can still take steps toward becoming a business analyst.
Some entry-level business analyst positions include:
- Information Security Analyst. This role entails ensuring the safety of an organization’s computer network as well as creating and implementing effective security measures.
- Computer Systems Analyst. These kinds of analysts examine an organization’s existing computer infrastructure and find ways to make the system operate more efficiently and effectively while keeping in mind how it impacts a company’s business.
- Management Analyst. Management analysts, also known as business analysts, are responsible for understanding and communicating ways an organization can become more efficient overall.
- Budget Analyst. This role entails helping the public and private sectors manage the financial aspects of their individual organizations.
- Market Research Analyst. Market research analysts use information gathered from studying the market to unlock potential sales of a service or product.
As described in detail below, many of these jobs don’t require extensive time spent in the field or advanced degrees. Based on data from the Bureau of Labor Statistics (BLS), all the positions listed below only require a bachelor’s degree. An entry-level business analyst’s salary is not usually as high as salaries for positions that require more education or experience. However, some of these jobs may still present above-average earnings.
Below are the median annual salaries and years of experience needed to achieve each of these positions, according to the BLS. All pay data is from May 2020.
| POSITION | MEDIAN SALARY | YEARS OF EXPERIENCE RECOMMENDED/REQUIRED |
|---|---|---|
| Information Security Analyst | $103,590 | Less than five |
| Computer Systems Analyst | $93,730 | None |
| Management Analyst | $87,660 | Less than five |
| Budget Analyst | $78,970 | None |
| Market Research Analyst | $65,810 | None |
The information in this table was retrieved on April 2022.
Senior Business Analyst Salary
As previously mentioned, a senior business analyst’s salary is likely to be higher than a salary for an entry-level or junior-level professional. Senior business analysts have years of experience under their belts and may hold master’s degrees. This may translate into positions that often involve supervising talent and offer higher earnings. Some senior-level roles that are available to experienced business analysts may include:
- Financial Project Manager. In this role, financial project managers focus on the long-term goals of an organization and strive to help that organization achieve productive and sustainable financial growth.
- Computer and Information System Manager. Senior analysts in this position work to oversee the computer systems in an organization and manage the operations that pertain to these systems.
- Advertising, Promotions and Marketing Manager. This role entails researching and planning programs that will work to generate interest in a product or service.
Below is the median annual salary and years of experience needed to achieve each of these respective positions, according to the BLS. All pay data is from May 2020.
| POSITION | MEDIAN SALARY | YEARS OF EXPERIENCE RECOMMENDED/REQUIRED |
|---|---|---|
| Financial Project Manager | $134,180 | Five or more |
| Computer and Information System Manager | $151,150 | Five or more |
| Advertising, Promotions and Marketing Manager | $141,490 | Relevant experience necessary is determined by employer |
The information in this table was retrieved on April 2022.
Top Paying Locations/States for Business Analysts
Where a business analyst chooses to work may play a role in determining their salary, as business analyst salaries often vary by region, state and city. The term “business analyst” covers a broad range of roles and occupations, which can make it complicated to understand which regions offer the best business analyst salaries.
But some clear patterns can easily be identified. To simplify this issue, we have again used data from the BLS for the more specific title of management analyst, which includes business analysts, to provide a better picture of the business analyst salaries and earnings possibilities across the country.
May 2020 data from the O*NET revealed that Washington, D.C. and New Jersey were the states that offered the highest salaries for management analysts, with mean annual earnings reaching $109,220 in Washington, D.C. and $104,610 in New Jersey. Massachusetts offered the third-highest mean earnings at $101,390 per year.
On average, these five states had the highest-paid business analysts, according to the O*NET:
| STATE | MEDIAN BUSINESS ANALYST ANNUAL SALARY |
|---|---|
| New York | $98,100 |
| Massachusetts | $101,390 |
| New Jersey | $104,610 |
| Washington, D.C. | $109,220 |
| Connecticut | $95,230 |
The information in this table was retrieved on April 2022.
And these were the top five cities with the highest-paid business analysts, as reported by the O*NET:
| METROPOLITAN AREA | MEDIAN BUSINESS ANALYST ANNUAL SALARY |
|---|---|
| Dothan, Ala. | $174,480 |
| Barnstable Town, Mass. | $106,600 |
| Bridgeport-Stamford-Norwalk, Conn. | $115,510 |
| Beaumont-Port Arthur, Texas | $105,700 |
| Odessa, Texas | $101,690 |
The information in this table was retrieved on April 2022.
But those are not necessarily the areas where the most business analysts work. Take a look at the median salaries for management analysts in metropolitan areas that had the highest levels of employment for management analysts in 2020, based on O*NET data:
| METROPOLITAN AREA | MEDIAN BUSINESS ANALYST ANNUAL SALARY |
|---|---|
| Washington, D.C. | $109,220 |
| New York | $98,100 |
| Chicago | $74,930 |
| Los Angeles | $74,930 |
| Boston | $102,300 |
The information in this table was retrieved on April 2022.
Business Analyst Salary by Industry
A business analyst’s specific industry may be another factor in determining their salary. Some fields have higher demand, making the field more competitive and in turn presenting opportunities for higher pay.
Employment across all industries was projected to grow 7.7% from 2020-2030, according to the BLS. But certain industries may exceed that average. Here are some in-demand fields for business analysts.
Information Technology. With businesses increasingly relying on technology to function, IT may be one field for business analysts to consider. The BLS projected that computer and information technology occupations would experience a 13% growth rate from 2020-2030.
Business analysts in the information technology field may work as computer systems analysts, or systems architects, who bridge the gap between business and information technology by creating solutions to help organizations’ computer systems run more efficiently. The BLS put the median salary for a computer systems analyst at $93,730 per year in May 2020.
Finance/Insurance. The BLS predicted business and financial operations occupations to experience 8% growth from 2020-2030.
Within the realm of finance, business analysts may find work as financial analysts, who advise businesses on decision making to help boost their profits. As of May 2020, the BLS reported that the median financial analyst salary was $83,660.
Health care. Health care is another industry experiencing growth and may be a good fit for people with a background in business and an interest in health care. Jobs in health care were expected to see a 16% growth rate between 2020-2030, according to projections from the BLS.
In the medical industry, business analysts may work as medical and health services managers who coordinate the business activities of health care providers. These managers must be well-versed in health care technology and data analytics, among other skills.
Data from the BLS shows that the median salary for medical and health services managers was $104,280 per year as of 2020.
Health care is a broad field, and the average health care analyst salary may vary based on relevant factors, such as location, experience and job function.
| INDUSTRY AND SAMPLE BUSINESS ANALYST POSITION | MEDIAN SALARY |
|---|---|
| Information technology: Computer systems analyst | $93,730 |
| Finance/insurance: Financial analyst | $83,660 |
| Health care: Medical and health services manager | $104,280 |
The information in this table was retrieved on April 2022.
FAQs About Business Analyst Salary
Business analyst salaries largely depend on the industry in which a business analyst works, their level of experience and where they are employed. Below are some frequently asked questions about business analysts’ salaries.
What is the median business analyst salary?
The median annual salary for management analysts, which includes business analysts, was $87,660 as of May 2020, per the BLS. Business analysts can work in a wide range of fields, and based on their industry, location and level of experience, a business analyst’s salary can vary.
How much does a business analyst make per hour?
Based on a median annual salary of $87,660, the 2020 median hourly pay for a management analyst, which includes business analysts, is $42.14 per hour. However, a business analyst’s hourly pay can vary based on their experience, industry and location.
What is the highest paying industry for business analysts?
Business analysts who work in the health care industry have the potential to take home some of the highest pay, as discussed in the section above. The median salary for medical and health services managers was $104,280 as of May 2020.
This page includes information from O*NET OnLine by the U.S. Department of Labor, Employment and Training Administration (USDOL/ETA). Used under the CC BY 4.0 license. O*NET® is a trademark of USDOL/ETA.
Last updated in April 2022.