www. PMP - Certification - Exam .com

# PMP Formulas The PMP Certification Exam will contain questions requiring the use of formulas to calculate the correct answer. You will not be able to answer the correctly if you do not have the appropriate formula memorized. The PMP Certification Exam may not present a question for each possible formula; but it is guaranteed that the exam will most likely present questions which required the use of three to five of the possible formulas.

 Formula Definition AC Actual Cost = CV ÷ (CPI - 1)

 Formula Definition BAC Budget At Completion = ∑(PV) at project completion

 Formula Definition BCWP Budgeted Cost of Work Performed (also known as) Earned Value(EV) = % complete * BAC = % complete * PV

 Formula Definition Communication Channels = (N * (N - 1))÷ 2 N = Number of Stakeholders

 Formula Definition Cost to Buy = Initial Cost + # of Months * Monthly Maintenance Costs

 Formula Definition CPI Cost Performance Index = EV ÷ AC Cost Peformance Index Values > 1 are considered good

 Formula Definition CV Cost Variance = EV - AC Cost Variance Values > 0 are considered good

 Formula Definition EAC Estimate at Completion (many versions of this formula) = AC + bottom-up ETC = AC ÷ % Complete = BAC ÷ Cummulative CPI = AC + (BAC - EV) = AC + [(BAC - EV) � (Cummulative CPI x Cummultive SPI)]

 Formula Definition EMV Expected Monetary Value = Impact * Probability

 Formula Definition ETC Estimate To Complete = EAC - AC

 Formula Definition EV Earned Value (also known as) Budgeted Cost of Work Performed(BCWP) = % complete * BAC = % complete * PV

 Formula Definition Float = LS - ES = LF - EF LS = Late Start ES = Early Start LF = Late Finish EF = Early Finish

 Formula Definition Normal Distribution 1 SD = 1 Sigma 1 Sigma = 68.26% 2 Sigma = 95.46% 3 Sigma = 99.73% 6 Sigma = 99.999%

 Formula Definition PERT Analysis = (O + 4M + P) ÷ 6 O = Optimistic Estimate M = Most Likely Estimate P = Pessimistic Estimate

 Formula Definition Present Value = FV ÷ ((1 + r)^n) FV = Future Value r = Rate of Interest n = number of time periods

 Formula Definition PTA Point of Total Assumption = ((Ceiling Price - Target Price) ÷ Buyer's Share Ratio) + Target Cost

 Formula Definition PV Planned Value = SV ÷ (SPI - 1)

 Formula Definition ROI Return on Investment = Net Benefits ÷ Net Cost

 Formula Definition SD Standard Deviation of the Activity = (P - O) ÷ 6 O = Optimistic Estimate P = Pessimistic Estimate

 Formula Definition SPI Schedule Performance Index = EV ÷ PV Schedule Performance Index Values > 1 are considered good

 Formula Definition SV Schedule Variance = EV - PV Schedule Variance Values > 0 are considered good

 Formula Definition TCPI To-complete Cost Performance Index (many versions of this formula) = (BAC - EV) ÷ (BAC - AC) = (BAC - EV) ÷ (EAC - AC) = Remaining Work � Remaining Budget TCPI Values < 1 are considered good

 Formula Definition VAC Variance At Completion = BAC - EAC

 Formula Definition Variance of Activity = ((P - O) ÷ 6) ^ 2 = (Standard Deviation of the Activity) ^ 2 O = Optimistic Estimate P = Pessimistic Estimate