Important Formulas for the PMP Exam


Here are some formulas which may be important from the point of view of the PMP exam -

Future value calculations:
FV = PV(1 + i)n
Present Value is calculated as follows:
PV = FV / (1 + i)n

The formula for calculating the lines of communication is as follows:
(number of participants × (number of participants less 1)) divided by 2

Here’s the calculation in mathematical terms: n (n – 1) / 2

The formula to calculate expected value is as follows:
(optimistic + pessimistic + (4 × most likely)) ÷ 6

The formula for standard deviation, which helps you determine confidence level, is as follows:
(pessimistic – optimistic) ÷ 6

Performance measurements
Cost variance: CV = EV – AC
Schedule variance: SV = EV – PV

Performance indexes
Cost performance index: CPI = EV ÷ AC
Cumulative cost performance index: CPIC = EVC ÷ ACC
Schedule performance index: SPI = EV ÷ PV


Estimate to complete (cost to complete remaining work)
Based on new estimate: manual calculation by project team
ETC with typical variances: ETC = (BAC – EVC) ÷ CPIC
ETC with atypical variances: ETC = (BAC – EVC)

Estimate at completion (expected total cost at completion)
Using new estimate when assumptions are flawed: EAC = ACC + ETC
EAC using CPIC (typical variances): EAC = ACC + ((BAC – EV) ÷ CPIC)
EAC using remaining budget (atypical variances): EAC = ACC + BAC – EV

Variance analysis
Variance analysis: VAC = BAC – EAC

If you want a more comprehensive guide to PMP Formulas with detailed explanations and a pretty useful cheat-sheet, I recommend the PMP Exam Formula study guide.