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 
LSES and LFEF 
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 

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 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)
Comments
slangley (not verified)
Mon, 03/31/2008  02:04
Permalink
#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)
admin
Mon, 03/31/2008  03:37
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Correction made. Thanks a
Correction made. Thanks a lot for reporting the error
ram6s9 (not verified)
Fri, 06/06/2008  21:28
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Sigma
For the sake of completeness, I guess it would be better to include the Six Sigma value too.
6 Sigma = 99.99985
manishsinghal (not verified)
Mon, 08/18/2008  07:27
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Burn Rate formulae
The formulae for Burn Rate is
1/CPI where CPI = Cost performance Index.
barbarapmp (not verified)
Tue, 09/16/2008  19:35
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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
o3dr0p0ut1o
Thu, 02/17/2011  14:48
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(P + 4M + O ) / 6 is
(P + 4M + O ) / 6
is correct if your follow the MDAS rule...
MichelSteve
Fri, 10/21/2011  11:38
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Franchise
I just checked the MDAS rule and after this i got know that it is true.Any how tahnks for recommending.
Franchises
miansahib
Tue, 09/15/2009  22:08
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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,
ChandraR
Wed, 01/13/2010  13:59
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Can you pl. be more
Can you pl. be more specific how this question is related to PMP?
Thanks
Chandra
Have2passfirsttry
Fri, 07/08/2011  00:59
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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= EVAC
SV=EVPV
CPI=EV/AC
SPI=EV/PV
Then u just have to remember/memorize :
EAC=BAC/CPI
twenty20
Mon, 03/26/2012  08:44
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Helpful
This is really helpful ! Thanks for compiling !!
Cheers, Naveen
sspawar
Thu, 08/23/2012  15:20
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ROM RANGE
PMBOK 4 IS +/ 50%,
AND IN ABOVE LIST IT IS 50/+100 %, I THINK IT WAS IN PMBOK 3.
ranajee
Tue, 03/12/2013  14:01
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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.
NagwaHelal
Wed, 05/29/2013  15:39
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PERT relate question
Would u please advise. How to solve this question (in details please)
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).
Choose one answer.
24 days to 26 days
18 days to 30 days
24 days to 28 days
22 days to 26 days
atmic
Mon, 06/24/2013  22:59
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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): (PO)/6 = (3226)/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).
qusroo
Fri, 05/31/2013  01:06
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Learn
Hi,
The above sheet is help full,,,,
but can u suggest what is the best way to remember the formulas.
atmic
Wed, 06/26/2013  15:02
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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.
https://plus.google.com/110378594959350757709/posts
ahmed855
Mon, 05/12/2014  06:47
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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 !
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Thu, 02/26/2015  12:39
Permalink
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