# 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 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 σ 1σ = 68.27% 2σ = 95.45% 3σ = 99.73% 6σ = 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 Cost – Actual CostBonus = Savings x PercentageContract Cost = Bonus + FeesTotal 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

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)

### #14 Present Value formula is incorrect.

As written the formula only works for 1 year.

The proper formula should be:

PV=  FV / ((1 + r)^term)

Correction made. Thanks a lot for reporting the error

### Sigma

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

The formulae for Burn Rate is

1/CPI where CPI = Cost performance Index.

### PERT Formula Error

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

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

OR to make it less confusing for folks:

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

### (P + 4M + O ) / 6  is

(P + 4M + O ) / 6

### Franchise

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

Franchises

### PMBOK 4 Formula's

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 please share if already  got it.

Regards,

### Can you pl. be more

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

Thanks

Chandra

### How I remember EV formula

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

This is really helpful ! Thanks for compiling !!

Cheers, Naveen

### ROM RANGE

PMBOK 4 IS +/- 50%,

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

### This is a great summary and

This is a great summary and thanks for putting it together.

Is there any excel sheet or printable version of these formulae.

### PERT relate question

You have received estimates for one of your project tasks as follows: The Pessimistic estimate is 32 days, the Optimistic estimate is 26 days, and the Most Likely estimate is 22 days. Using this information, calculate the range of Finish Dates for this task with a certainty of 99.999 percent (6 STD).

 24 days to 26 days 18 days to 30 days 24 days to 28 days 22 days to 26 days

### Answer: 18 days to 30 days

Solution.

Step 1. Determine expected value for estimation: (O+4M+P)/6 = (26+88+32)/6 = 24.33

Step 2. Find Standard Deviation (SD): (P-O)/6 = (32-26)/6 = 1

Step 3. Determine Standard distribution against the required probability.

Since the requirement of probability is 99.999... % (which is 6 Sigma = 99.99985...), then its standard deviation equal:

SD x 6Sigma = 1 x 6 = 6,

which helps to calculate the range from the expected value:

24.33 -/+6 = from 18 days to 30 days (approximately for this case).

### Learn

Hi,

The above sheet is help full,,,,

but can u suggest what is the best way to remember the formulas.

### Using, mentoring and sharing ideas with others

I think, the best way for understanding and memorizing the formulas, other rules and principals is using them on your projects; alternatively, mentoring and sharing your thoughts with others.

I also found a very useful community that helps you to understand sophisticated questions and allows sharing your ideas.

### Formulas not from PMBOK!

Hello,

I am wondering, where did you find these formulas? They don't exist at all in the PMBOK 5th edition!

I am referring to:

 13. Net Present Value 14. Present Value PV 15. Internal Rate of Return 16. Benefit Cost Ratio 17. Payback Period 25. Expected Monetary Value 26. Point of Total Assumption (PTA) Sigma σ Return on Sales ( ROS ) Return on Assets( ROA ) Return on Investment ( ROI ) Working Capital Discounted Cash Flow Contract related formulas

How do they come in the exam if never been mentioned in PMBOK !

### hello

this is a great news! i will be looking forward for your upcoming projects! .. keep posting
check this out -->

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