PMP Formulas List

8/10/2019 PMP Formulas List

1/7

Formulas / Math for PMP

If you think a formula is missing here but required in PMP exam. Post a comment and we will

add to this table.

1. PERT (P + 4M + O )/ 6 Pessimistic, Most Likely,Optimistic

2. Standard Deviation (P - O) / 6

3. Variance [(P - O)/6 ]squared

4. Float or Slack LS-ES and LF-EF

5. Cost Variance EV - AC

6. Schedule Variance EV - PV

7. Cost Perf. Index EV / AC

8. Sched. Perf. Index EV / PV

9. Est. At Completion (EAC) BAC / CPI,

AC + ETC -- Initial Estimates are flawed

AC + BAC - EV -- Future variance are Atypical

AC + (BAC - EV) / CPI -- Future Variance would

be typical

10. Est. To Complete

Percentage complete

EAC - AC

EV/ BAC

11. Var. At Completion BAC - EAC

12. To Complete Performance

Index TCPI

Values for the TCPI index of less then 1.0 is good

because it indicates the efficiency to complete is

less than planned. How efficient must the project

team be to complete the remaining work with the

remaining money?

( BAC - EV ) / ( BAC - AC )

13. Net Present Value Bigger is better (NPV)

14. Present Value PV FV / (1 + r)^n

15. Internal Rate of Return Bigger is better (IRR)

16. Benefit Cost Ratio Bigger is better ((BCR or Benefit / Cost) revenue


2/7

or payback VS. cost)

Or PV or Revenue / PV of Cost

17. Payback Period Less is better

Net Investment / Avg. Annual cash flow.18. BCWS PV

19. BCWP EV

20. ACWP AC

21. Order of Magnitude Estimate -25% - +75% (-50 to +100% PMBOK)

22. Budget Estimate -10% - +25%

23. Definitive Estimate -5% - +10%

24. Comm. Channels N(N -1)/2

25. Expected Monetary Value Probability * Impact

26. Point of Total Assumption

(PTA)

((Ceiling Price - Target Price)/buyer's Share Ratio)

+ Target Cost

Sigma

1 = 68.27%

2 = 95.45%

3 = 99.73%

6 = 99.99985%

Return on Sales ( ROS )Net Income Before Taxes (NEBT) / Total Sales OR

Net Income After Taxes ( NEAT ) / Total Sales

Return on Assets( ROA )NEBT / Total Assets OR

NEAT / Total Assets

Return on Investment ( ROI )

NEBT / Total Investment OR

NEAT / Total Investment

Working Capital Current Assets - Current Liabilities

Discounted Cash Flow Cash Flow X Discount Factor

Contract related formulas

Savings = Target CostActual Cost

Bonus = Savings x Percentage

Contract Cost = Bonus + Fees

Total Cost = Actual Cost + Contract Cost

Critical Path formulas

Forward Pass: (Add 1 day to Early Start) EF = (ES + Duration - 1)

Backward Pass: (Minus 1 day to Late Finish)

LS = (LF - Duration + 1)

ES = Early Start; EF = Early Finish;

LS = Late Start; LF = Late Finish


3/7

EVA = Net Operating Profit After Tax - Cost of Capital (Revenue - Op. Exp - Taxes) -

(Investment Capital X % Cost of Capital) EVA - Economic Value Add Benefit Measurement

- Bigger is better

Source Selection= (Weightage X Price) + (Weightage X Quality)

Comprehensive notes by PMZilla Members.upMemorizing Inputs Tools and Outputs -

updated for PMBoK 4th Editon

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177232 reads

#14 Present Value formula is incorrect.

Submitted by slangley on Mon, 03/31/2008 - 02:04.

As written the formula only works for 1 year.

The proper formula should be:

PV= FV / ((1 + r)^term)

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4/7

Correction made. Thanks a

Submitted by admin on Mon, 03/31/2008 - 03:37.

Correction made. Thanks a lot for reporting the error


i date asia You're what

Submitted by daisy on Wed, 01/02/2013 - 02:55.

i date asia You're what blogging needs, an open minded superhero who isn't afraid to tell it like it is. Thisis definitely something people need to be up on. Good luck in the future idateaisa scam


Sigma

Submitted by ram6s9 on Fri, 06/06/2008 - 21:28.

For the sake of completeness, I guess it would be better to include the Six Sigma value too.

6 Sigma = 99.99985


Burn Rate formulae

Submitted by manishsinghal on Mon, 08/18/2008 - 07:27.

The formulae for Burn Rate is

1/CPI where CPI = Cost performance Index.


PERT Formula Error

Submitted by barbarapmp on Tue, 09/16/2008 - 19:35.

The formula you have listed for PERT is incorret. The actual formula is:

(P+(4xM)+O)/6
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5/7

OR to make it less confusing for folks:

(Pessimistic Estimate + (4 x Most Likely Estimate) + Optimistic Estimate) / 6


(P + 4M + O ) / 6 is

Submitted by o3dr0p0ut1o on Thu, 02/17/2011 - 14:48.

(P + 4M + O ) / 6

is correct if your follow the MDAS rule...


Franchise

Submitted by MichelSteve on Fri, 10/21/2011 - 11:38.

I just checked the MDAS rule and after this i got know that it is true.Any how tahnks forrecommending.

Franchises


PMBOK 4 Formula's

Submitted by miansahib on Tue, 09/15/2009 - 22:08.

Hi Gurus,

May I know some one maintaining these formula's and updating for PMBOK4.

also I want to know How many Formula's are in Total in PMBOK4 and can someone pleaseshare if already got it.

Regards,


Can you pl. be more

Submitted by ChandraR on Wed, 01/13/2010 - 13:59.

Can you pl. be more specific how this question is related to PMP?
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6/7

Thanks

Chandra


How I remember EV formula

Submitted by Have2passfirsttry on Fri, 07/08/2011 - 00:59.

I learned this in a class I took.I thought I would share.

AC operand EV operand PV

--------------- --------------

CV= _ _ SV

CPI= / / SPI

Arranged alphabetically AC, EV, PV, and the sides Cs before Ss

Begin with EV and move to the right or left to find your sides

CV= EV-AC

SV=EV-PV

CPI=EV/AC

SPI=EV/PV

Then u just have to remember/memorize :

EAC=BAC/CPI


Helpful

Submitted by twenty20 on Mon, 03/26/2012 - 08:44.

This is really helpful ! Thanks for compiling !!
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7/7

Cheers, Naveen


Formulas / Math for PMP

Submitted by buffele001 on Wed, 05/30/2012 - 00:50.

If a problem can have more than one way of being solved, write down all the ways. This is

because most math problems have an easy way and a hard way to solve, and the easy way

may be a different method each time.-Arthur van der Vant


ROM RANGE

Submitted by sspawar on Thu, 08/23/2012 - 15:20.

PMBOK 4 IS +/- 50%,

AND IN ABOVE LIST IT IS -50/+100 %, I THINK IT WAS IN PMBOK 3.
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