Business analysts are key players in a company’s success. Thanks to their keen problem solving and data expertise, teams can make smart, informed decisions on anything from internal operations to product development—and in the process, save the organization time, money, and manpower.
And the field is only growing in demand: According to the U.S. Bureau of Labor Statistics (BLS), management analyst—another term for business analyst—jobs are expected to increase by 11% between now and 2033, at a rate much faster than the average of all U.S.-based occupations.
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As a result, business analysts can command impressive salaries. We’ll break down how much business analysts make depending on their location, as well as how to factor in cost of living when evaluating the payoff of pursuing this job.
How much do business analysts make?
Business analysts in the U.S. make on average $99,410 a year, or $47.80 an hour, according to the latest data from the BLS. Glassdoor puts the average salary for a business analyst lower, at $84,278 a year, with additional pay—such as bonuses or equity—averaging out to $14,711 a year.
“Not everyone gets their total cash from base and bonus—some people just have base pay,” says Jody Thelander, a compensation consultant who’s spent over two decades collecting salary data on private companies.
In Massachusetts, business analysts make the highest salary, at $134,350 a year—followed closely by Wyoming ($126,840), New York ($126,450), Vermont ($125,240), and New Jersey ($122,840). This isn’t all too surprising, considering New York and Massachusetts rank in the top five states for the highest cost of living, with Vermont and New Jersey ranking in the top 20 states. Arguably, Wyoming-based business analysts get the most bang for their buck with a higher-than-average salary paired with a relatively low cost of living when compared to other states.
While these numbers likely reflect the market you’re working in, it’s important to note that salary is highly dependent on factors beyond location—such as the type of company, your level and experience, and your salary negotiation skills. “Obviously, there’s a premium for education, and the more exclusive the role, the more the compensation ticks upwards,” Thelander adds.
Business analytics versus business intelligence: What’s the difference?
Business analytics and business intelligence may sound similar, but the job responsibilities of each differ slightly. On its blog, Harvard’s business analytics program argues that while business intelligence is focused on using data to improve efficiencies and performance today, business analytics is the practice of using data to predict outcomes and make decisions for the future. The two fields also sometimes dabble in their own set of tools, programming languages, systems, and frameworks, meaning you may need different training depending on which strikes your fancy.
In general, though, companies benefit from having both business analytics and business intelligence teams and expertise.
Cost of living
A high salary is great—but only if your expenses aren’t high, either. Which is why the places where the cost of living is highest tend to also pay the most for business analysts. When homes, food, travel, and activities are costly, incomes naturally (and ideally) have to rise to meet them.
The most expensive states and districts in the U.S. to live in, according to the latest cost-of-living index data provided by the Council for Community and Economic Research (C2ER), are Hawaii, DC, Massachusetts, California, and New York—places also where emerging tech and Fortune 500 companies typically reside. In these regions, with the exception of Hawaii, business analysts tend to make more than six figures a year.
But business analysts outside these areas can still make substantial wages, with low-cost-of-living states such as Illinois, Alabama, and Georgia paying over $100,000 a year for talent. “We know Miami’s hot right now,” Thelander says about demand for tech and data talent, adding, “The southeast is creeping up, too.”
Business analyst salary by state
Below are the salaries of a business analyst in all 50 U.S. states and the District of Columbia, based on the BLS—along with the latest cost of living indices for each state and district as outlined by the Missouri Economic Research and Information Center and based on data from C2ER.
The takeaway
Overall, business analysts make the most money in Massachusetts, where the cost of living is also significantly high, while they make the least in Arkansas, at around $77,000 a year. Other areas where cost of living is high, including DC, Washington, and California, pay well for business analysts—about $120,000 a year.
Regardless of your circumstances, Thelander emphasizes knowing your worth and fighting for the pay you deserve. “Figure out where you fit into things, understand what the ranges are, and then make sure that you go for what you want,” she says.
She adds, “It pays to know.”
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