The Complete PMP Formula Guide

Formulas and calculations take up roughly 10% of the PMP exam. Its hard to say the exact
number of calculation questions that you will get on your exam because the Prometrics software
selects 200 questions at random at the time of your exam. (This means you can be taking the
same exam as your neighbour but the two of you will have completely different exams.)

To me, the formulas are easy marks because all you need to do is memorize the formulas and
then plunk in the numbers from the questions.

Lets look at the complete list of 17 formulas you need to know for your PMP exam along with a
description for each. At the end of this article, there will be an option for you to download this
guide.

(It is a good idea to include all of these formulas on your cheatsheet before your exam. To
learn how to create your own cheatsheet, click here.)

Name Formula Interpretation

Number of communications as the number of team members
n * (n-1) / 2
channels increase, the number of
where n is the number of team
communication channels
members
increase, and hence, the risk on
the project increases

e.g. if there are 5 team

members, there will be 5*(5-1)/2
= 10 communication channels

Schedule Performance Index SPI = EV / PV < 1 behind schedule

(SPI) = 1 on schedule
> 1 ahead of schedule
EV = earned value
PV = planned value

Cost Performance CPI = EV / AC < 1 Over budget

Index (CPI) = 1 On budget
> 1 Under budget
EV = earned value
AC = actual cost

Schedule Variance (SV) SV = EV - PV < 0 Behind schedule

= 0 On schedule
> 0 Ahead of schedule
EV = earned value
PV = planned value

Cost Variance (CV) < 0 Over budget

CV = EV - AC = 0 On budget
> 0 Within budget
EV = earned value
AC = actual cost
 Name Formula Interpretation
Estimate at EAC = AC + New ETC If the original estimate is based
Completion (EAC) if on wrong data/assumptions or
original is flawed circumstances have changed
AC = actual cost
ETC = estimate to complete

Estimate at EAC = AC + BAC EV The variance is caused by a

Completion (EAC) if onetime event and is not likely to
BAC remains the happen again
AC = actual cost
same BAC = budget at completion
EV = earned value

Estimate at EAC = BAC/CPI If the CPI would remain the

Completion (EAC) if same till end of project, i.e. the
CPI remains the original estimation is not
BAC = budget at completion
same accurate
CPI = cost performance index

Estimate at EAC = AC + (BAC - Use when the question gives all

Completion (EAC) if the values (AC, BAC, EV, CPI
substandard EV)/(CPI*SPI) and SPI), otherwise, this formula
performance is not likely to be used
continues AC = actual cost
BAC = budget at completion
EV = earn value
CPI = cost performance index
SPI = schedule performance
index

To-Complete TCPI = (BAC EV) / < 1 Under budget

Performance Index = 1 On budget
(TCPI) (BAC AC) > 1 Over budget

BAC = budget at completion

EV = earned value
AC = actual cost

Estimate to ETC = EAC -AC

Completion
EAC = estimate at completion
AC = actual cost

Variance at VAC = BAC EAC < 0 Under budget

Completion = 0 On budget
> 0 Over budget
BAC = budget at completion
EAC = estimate at completion

PERT Estimation (O + 4M + P)/6

O = optimistic estimate
M = most likely estimate
P = pessimistic estimate
 Name Formula Interpretation
Standard Deviation (P O)/6
P = pessimistic estimate
O = optimistic estimate

Float/Slack LS ES equals 0 means the tasks are on

critical path
LS = late start
ES = early start
< 0 Behind schedule

LF EF
LF = late finish
EF = early finish