


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 + bottomup 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 
Tocomplete 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




For more information, see:



