Interested to grab some easy marks in the PMP exam?
Don’t lose sleep over PMP formulae.
The numerical questions in PMP exam are relatively easier.
Score easy marks by understanding few PMP formulae; and practice simple problems that applies these PMP formulae to project scenarios.
In this article, I have covered the most commonly used PMP formulae. Use this as a handy reference to help you learn, memorize the PMP formulae and practice thousands of PMP questions. Please note that numerical problems are extremely easy to score marks in the exam. So, your effort on learning the PMP formulae will be worth it.
Table of Contents
| Future Value FV = | PV (1+i)n |
| Present Value PV = | FV / (1+i)n |
| Benefit Cost Ratio = | Benefit/ Cost |
where
i = rate of interest
n = duration
| Total Float of an activity = | LS – ES (or) LF-EF |
| Free Float of an activity = | (ES)Successor – EF |
where
ES = Early Start
EF = Early Finish
LS = Late Start
LF = Late Finish
| Expected duration of an activity te = | (O+4M+P) / 6 |
| Standard deviation of an activity σ = | (P – O) / 6 |
| Variance of an activity = | σ2 |
where
O = Optimistic duration
M = Most likely duration
P = Pessimistic duration
One Standard Deviation (1σ) = 68.26% chance that an activity will be completed in the range (te ±1σ) duration
2σ = 95.46% chance
3σ = 99.73% chance
6σ = 99.99% chance
| Cost Baseline = | Estimated Project Cost + Contingency Reserve |
| Project Budget = | Cost Baseline + Management Reserve |
| Schedule Variance SV = | EV – PV |
| Schedule Performance Index SPI = | EV / PV |
| Cost Variance CV = | EV – AC |
| Cost Performance Index CPI = | EV / AC |
| Estimate To Complete ETC = | EAC – AC |
| Variance At Completion VAC = | BAC – EAC |
where
EV = Earned Value
PV = Planned Value
AC= Actual Cost
BAC = Budget At Completion
Tip: Remember that all the right hand side of the first four formulae above starts with EV.
| EAC = AC + (BAC – EV) [use this formula if current project performance is atypical; you expect the project to perform to original expectation from now on] |
| EAC = AC + (BAC – EV) / CPI = BAC / CPI [use this formula if current project performance is typical; you expect the project to perform similarly till end of the project] |
| EAC = AC + (BAC – EV) / (SPI x CPI) [use this formula if you want to complete the project in time, irrespective of what has happened so far] |
| TCPI = (BAC – EV) / (BAC – AC) [based on BAC] |
| TCPI = (BAC – EV) / (EAC – AC) [based on EAC] |
| Expected Monetary Value EMV = Probability x Impact |
| Number of communication channels = n (n-1) / 2 |
Where n = number of stakeholders involved
I tried to provide you with the best collection of PMP formulae. Please understand each formula. If you have any queries on the above PMP formulae, please leave a comment below. Let us discuss and understand the formulae better.
Did I miss any important PMP formula? Please do me a favour by bringing it to my attention. I will update the article so that other PMP aspirants also get the benefit.
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View Comments
Hi Sir,
Thank you for explaining it. So the 3 formulas to calculate EAC are,
1) EAC = BAC/CPI --> use when project is expected to perform the same for the remainder of the project
2) EAC = AC+(BAC-EV) --> use when you expect the project to perform as planned from now on.
3) EAC = AC = [(BAC-EV)/(CPI*SPI)] --> use when you want the project to complete on time regardless of what has happened so far.
Is this correct?
Yes, correct.
Small correction in the third formula. It should read as:
EAC = AC+(BAC-EV)/(CPI*SPI)
The third formula is used when both CPI and SPI are taken into account. Here, it is also assumed that the project will perform similarly for the remainder of the project; in addition, you also want to stick to the original schedule. Two conditions in this formula, from schedule perspective and cost perspective.
I noticed that the below EAC calculation is incorrect. There are 4 ways to calculate EAC. I wasn't sure which type you were trying to list here. Can you please explain?
EAC = AC + (BAC – EV) / CPI = BAC / CPI
[use this formula if current project performance is typical; you expect the project to perform similarly till end of the project]
The formula is correct. It is the first scenario given in PMBOK Guide, Table 7-1. If the CPI is expected to be the same for the remainder of the project, then you can calculate EAC using this formula.
EAC
= Actual Cost + Remaining work / CPI
= AC + (BAC-EV)/CPI
= BAC/CPI