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PMP Formulas - Cheat Sheet ;)

Project Selection Methods


1. Net Present Value Bigger is better (NPV)
2. Present Value PV FV / (1 + r) n
3. Internal Rate of Return Bigger is better (IRR)
Bigger is better ((BCR or Benefit / Cost) revenue or payback
4. Benefit Cost Ratio VS. cost)
Or PV or Revenue / PV of Cost
Less is better
5. Payback Period
Net Investment / Avg. Annual cash flow.
Duration Estimation Methods
6. Estimated Time (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic
Three points est. PERT
7. Standard Deviation (P - O) / 6
8. Variance [(P - O)/6 ]squared
9. Float or Slack LS-ES and LF-EF
Cost Performance Estimation Methods
10. Cost Variance EV - AC
11. Schedule Variance EV - PV
12. Cost Perf. Index EV / AC
13. Sched. Perf. Index EV / PV
BAC / CPI
AC + ETC -- Initial Estimates are flawed
14. Est. At Completion (EAC)
AC + BAC - EV -- Future variance are Atypical
AC + (BAC - EV) / CPI -- Future Variance would be typical
15. Est. To Complete (ETC) EAC - AC
16. Percentage complete % EV/ BAC
17. Var. At Completion (VAC) BAC - EAC
Values for the TCPI index of less than 1.0 is good because it
18. To Complete indicates the efficiency to complete is less than planned.
Performance Index How efficient must the project team be to complete the
TCPI remaining work with the remaining money?
TCPI = ( BAC - EV ) / ( BAC - AC )
19. BCWS PV
Old EVA
20. BCWP EV
names:
21. ACWP AC
Overall Project Cost Estimation Methods
22. Order of Magnitude
-25% - +75% (-50 to +100% PMBOK)
Estimate
23. Budget Estimate -0.35
24. Definitive Estimate -0.15
Communication Management
25. Comm. Channels N(N -1)/2
Cost Management
26. Expected Monetary Value Probability * Impact
27. Point of Total Assumption ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target
(PTA) Cost
· 1ó = 68.27%
28. Sigma · 2ó = 95.45%
· 3ó = 99.73%
Net Income Before Taxes (NEBT) / Total Sales OR
29. Return on Sales ( ROS )
Net Income After Taxes ( NEAT ) / Total Sales
NEBT / Total Assets OR
30. Return on Assets( ROA )
NEAT / Total Assets
31. Return on Investment ( NEBT / Total Investment OR
ROI ) NEAT / Total Investment
32. Working Capital Current Assets - Current Liabilities
33. Discounted Cash Flow Cash Flow X Discount Factor
Procurement Management
Savings = Target Cost – Actual Cost

Bonus = Savings x Percentage


34. Contract related formulas
Contract Cost = Bonus + Fees

Total Cost = Actual Cost + Contract Cost

Document History:

- Ver0.6, by Ahmad Al-Musallami. Updated on 2015-1-28.

Ahmad Al-Musallami, email: aalmusallami@gmail.com

PMP Formulas - Cheat Sheet v0.6.docx 2/2 1/28/2015-8:21:36 AM

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