Business Analyst Salary Guide

Business analysts work to make the corporate world operate smoothly. From helping companies increase productivity, to ironing out distribution details, to devising creative technological solutions, business analysts’ roles cover a range of functions.

Like many other roles, the salaries of business analysts are contingent on a variety of factors such as education level, years of experience, job function, location and company size. The term ‘business analyst’ is relatively broad, encompassing general analysts who are in the early stages of their professional careers, to specialized consultants with decades of experience, and more.

The breadth found in the field makes pinning down a specific figure for a business analyst average salary hard. It’s possible to gain a better understanding of what you may earn in the field by taking into account the variation between roles in different industries. It’s also useful to understand differences in salaries between analysts who are practicing at different stages of their careers.

Additionally, location often plays a role in determining salaries for business analysts, with some areas of the country presenting opportunities for higher pay.

According to the U.S Bureau of Labor Statistics (BLS), the median annual salary for management analysts (which includes business analysts) is $85,260 per year.

Business Analyst Salary by Experience

Unsurprisingly, experience plays an important role in determining a business analyst’s salary. In general, experience may be broken down into the following categories—entry level, junior level, and senior level. Different organizations will define the 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 you are considered entry level, junior level, or senior level is usually determined by your experience in the field.  Other factors, such as whether or not you hold an advanced degree—such as a Master’s in Analytics—may come into play as well. It’s also important to note that businesses and organizations may define the three categories differently. So, as you search for opportunities and research earning potential, take this detail into account. 

Though you can potentially earn a higher salary as you progress in your career, doing so also often means taking on increased responsibility, learning new skills, and expanding your scope of knowledge and expertise. 

Entry level Business Analyst Salary

For those in the early stages of their careers as business analysts, there are a couple of job options available. These positions may offer you the opportunity to begin applying your skills, to learn the ins and outs of the business analytics world, and to start moving forward in your career. 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, 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 in which 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. Business analyst salary entry level-wise is not usually as highly paid as positions that require more education or experience. However, some of these jobs may still present above-average earnings.

Below is the median annual salary and years of experience needed to achieve each of these respective positions, according to the U.S. Bureau of Labor Statistics (BLS). All pay data is from May 2019. 

The information in this table was retrieved on July 29, 2020.

Additionally, based on the data from the BLS, all of the positions listed above only require a bachelor’s degree.

Senior Business Analyst Salary

As previously mentioned, a senior level business analyst 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 U.S. Bureau of Labor Statistics (BLS). All pay data is from May 2019. 

The information in this table was retrieved on July 29, 2020.

Top Paying Locations/States for Business Analyst

Where you choose to work as a business analyst may play a role in determining your salary, as compensation rates often vary by region, state, and city. As mentioned above, the term ‘business analyst’ covers a broad range of roles and occupations, making understanding which regions offer the best salaries challenging.

However, 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 different earning possibilities across the country. May 2019 data from the BLS reveals that New York and Virginia offer the overall highest salaries for management analysts, with mean annual earnings reaching $112,280 in New York and $105,280 in Virginia. California offers the third-highest mean earnings at $97,170 per year.

Large, urban areas that are home to bustling tech, business, and commerce companies may offer higher salaries for business analysts when compared to smaller areas in the country. Take a look at the average salary in metropolitan areas that, based on data from the BLS, have the highest levels of employment for management analysts:

• Business Analyst Salary NYC: $116,940
• Business Analyst Salary San Francisco: $113,750
• Business Analyst Salary Seattle: $109,940
• Business Analyst Salary Los Angeles: $105,540
• Business Analyst Salary Chicago: $100,990
• Business Analyst Salary Atlanta: $97,600

Business Analyst Salary by Industry

Your specific industry may be another factor in determining your salary as a business analyst. Some fields have higher demand, making the field more competitive, and in turn presenting opportunities for higher pay. 

According to the BLS, all occupations across all industries are projected to grow 5% from 2018-2028. 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 predicts computer and information technology occupations will experience a 12% growth rate between 2018-2028.  

The BLS puts the average salary for a computer systems analyst at $90,902 per year.

Finance/Insurance. The BLS predicts business and financial operations occupations to experience a 7% growth rate in the decade spanning 2018-2028.

As of 2018, the BLS reports that the average financial business analyst salary is $85,660. 

Health care. Health care is another industry experiencing growth and may be fit for people with a background in business and an interest in healthcare. Jobs in health care are expected to see a 14% growth rate between 2018-2028, according to projections from the BLS.

Data from the BLS also shows that the median salary for medical and health services managers is $100,980 per year. Health care is a broad field, and as with other industries, the average health care analyst salary may vary based on relevant factors, such as location, experience and job function.

Last updated: August 2020