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PMP Formulas and Calculation for PMP


Certification Demystified
Download the FREE 1-page guide on what maths formulas
you will need to remember for the PMP Exam

by Edward Chung November 25, 2015

Summary: Many consider the most difficult part of the PMP exam to be the calculations and
PMP formulas. Luckily PMP calculation is not quantum physics, you just need to
understand and memorize the following PMP Calculation formulas. Keep calm and study on!
(You can read more about my PMP exam and certification journey here.)
PMP Formulas mentioned in the PMBOK Guide 5th
Edition
NEW! Click here if you would like to have a more in-depth explanation of the Earned Value Management (EVM)
formulas.

PMP Formulas
Name
Formula Interpretation
(Abbreviation)
n should include the
project manager

e.g. if the no. of team


No. of
Communication
n (n-1)/2 members increase
from 4 to 5, the
Channels increase in
n = number of members in the team
communication
channels:
5(5-1)/2 4(4-1)/2 =
4
< 1 behind
Schedule SPI = EV/PV schedule
Performance Index = 1 on schedule
(SPI) EV = Earned Value > 1 ahead of
PV = Planned Value schedule
<1 Over budget
=1 On budget
>1 Under budget

Cost Performance
CPI = EV/AC sometimes the term
Index (CPI) cumulative CPI
EV = Earned Value
would be shown,
AC = Actual Cost
which actually is the
CPI up to that
moment

Schedule Variance
(SV)
SV = EV PV < 0 Behind
schedule
= 0 On schedule
PMP Formulas
Name
Formula Interpretation
(Abbreviation)
EV = Earned Value > 0 Ahead of
PV = Planned Value schedule

CV = EV AC <0 Over budget


Cost Variance (CV) =0 On budget
EV = Earned Value > 0 Within budget
AC = Actual Cost

EAC = AC + New if the original


estimate is based on
Estimate at
Completion (EAC) ETC wrong
data/assumptions or
if original is flawed
circumstances have
AC = Actual Cost
changed
New ETC = New Estimate to Completion

EAC = AC + BAC the variance is


Estimate at
Completion (EAC) EV caused by a one-time
event and is not
if BAC remains the
likely to happen
same AC = Actual Cost
again
BAC = Budget at completion
EV = Earned Value
if the CPI would
Estimate at
Completion (EAC)
EAC = BAC/CPI remain the same till
end of project, i.e.
if CPI remains the the original
BAC = Budget at completion
same estimation is not
CPI = Cost performance index
accurate

EAC = AC + [(BAC use when the


Estimate at
Completion (EAC)
-EV)/(CPI*SPI)] question gives all the
values (AC, BAC,
if substandard EV, CPI and SPI),
AC = Actual Cost
performance otherwise, this
BAC = Budget at completion
continues formula is not likely
EV = Earned Value
to be used
CPI = Cost Performance Index
SPI = Schedule Performance Index
PMP Formulas
Name
Formula Interpretation
(Abbreviation)

TCPI = (BAC EV)/


(BAC AC)
BAC = Budget at completion
EV = Earned value
AC = Actual Cost
To-Complete <1 Under budget
Performance Index =1 On budget
(TCPI) TCPI = Remaining >1 Over budget

Work
/Remaining Funds
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index

Estimate to
ETC = EAC -AC
Completion
EAC = Estimate at Completion
AC = Actual Cost

Variance at
VAC = BAC EAC <0 Over budget
=0 On budget
Completion
BAC = Budget at completion > 0 Under budget
EAC = Estimate at Completion

(O + 4M + P)/6
PERT Estimation
O= Optimistic estimate
M= Most Likely estimate
P= Pessimistic estimate

Standard Deviation
(P O)/6 this is a rough
estimate for the
standard deviation
O= Optimistic estimate
PMP Formulas
Name
Formula Interpretation
(Abbreviation)
P= Pessimistic estimate

LS ES
LS = Late start
= 0 On critical
ES = Early start
path
Float/Slack
< 0 Behind
LF EF schedule

LF = Late finish
EF = Early finish

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