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
2. Standard Deviation
3. Variance
4. Float or Slack
5. Cost Variance
6. Schedule Variance
7. Cost Perf. Index
8. Sched. Perf. Index
9. Est. At Completion (EAC)
(P + 4M + O )/ 6 Pessimistic, Most Likely,
Optimistic
(P - O) / 6
[(P - O)/6 ]squared
LS-ES and LF-EF
EV - AC
EV - PV
EV / AC
EV / PV
BAC / CPI,
AC + ETC -- Initial Estimates are flawed
AC + BAC - EV -- Future variance are Atypical
10. Est. To Complete
Percentage complete
11. Var. At Completion
12. To Complete Performance
Index TCPI
13. Net Present Value
14. Present Value PV
15. Internal Rate of Return
16. Benefit Cost Ratio
AC + (BAC - EV) / CPI -- Future Variance would
be typical
EAC - AC
EV/ BAC
BAC - EAC
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 )
Bigger is better (NPV)
FV / (1 + r)^n
Bigger is better (IRR)
Bigger is better ((BCR or Benefit / Cost) revenue
or payback VS. cost)
17. Payback Period
18. BCWS
19. BCWP
20. ACWP
21. Order of Magnitude Estimate
22. Budget Estimate
23. Definitive Estimate
24. Comm. Channels
25. Expected Monetary Value
26. Point of Total Assumption
(PTA)
Sigma
Return on Sales ( ROS )
Return on Assets( ROA )
Or PV or Revenue / PV of Cost
Less is better
Net Investment / Avg. Annual cash flow.
PV
EV
AC
-25% - +75% (-50 to +100% PMBOK)
-10% - +25%
-5% - +10%
N(N -1)/2
Probability * Impact
((Ceiling Price - Target Price)/buyer's Share Ratio)
+ Target Cost
1 = 68.27%
2 = 95.45%
3 = 99.73%
6 = 99.99985%
Net Income Before Taxes (NEBT) / Total Sales OR
Net Income After Taxes ( NEAT ) / Total Sales
NEBT / Total Assets OR
NEAT / Total Assets
NEBT / Total Investment OR
Return on Investment ( ROI )
Working Capital
Discounted Cash Flow
NEAT / Total Investment
Current Assets - Current Liabilities
Cash Flow X Discount Factor
Savings = Target Cost Actual Cost
Bonus = Savings x Percentage
Contract related formulas
Contract Cost = Bonus + Fees
Total Cost = Actual Cost + Contract Cost
Critical Path formulas
Forward Pass: (Add 1 day to Early Start)
Backward Pass: (Minus 1 day to Late Finish)
LS = (LF - Duration + 1)
ES = Early Start; EF = Early Finish;
LS = Late Start; LF = Late Finish
EF = (ES + Duration - 1)
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)
Comprehensive notes by PMZilla Members. up Memorizing Inputs Tools and Outputs updated for PMBoK 4th Editon
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177232 reads
#14 Present Value formula is incorrect.
Submitted by slangley on Mon, 03/31/2008 - 02:04.
As written the formula only works for 1 year.
The proper formula should be:
PV= FV / ((1 + r)^term)
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Correction made. Thanks a
Submitted by admin on Mon, 03/31/2008 - 03:37.
Correction made. Thanks a lot for reporting the error
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i date asia
You're what
Submitted by daisy on Wed, 01/02/2013 - 02:55.
i date asia
You're what blogging needs, an open minded superhero who isn't afraid to tell it like it is. This
is definitely something people need to be up on. Good luck in the future
idateaisa scam
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Sigma
Submitted by ram6s9 on Fri, 06/06/2008 - 21:28.
For the sake of completeness, I guess it would be better to include the Six Sigma value too.
6 Sigma = 99.99985
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Burn Rate formulae
Submitted by manishsinghal on Mon, 08/18/2008 - 07:27.
The formulae for Burn Rate is
1/CPI where CPI = Cost performance Index.
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PERT Formula Error
Submitted by barbarapmp on Tue, 09/16/2008 - 19:35.
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
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(P + 4M + O ) / 6 is
Submitted by o3dr0p0ut1o on Thu, 02/17/2011 - 14:48.
(P + 4M + O ) / 6
is correct if your follow the MDAS rule...
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Franchise
Submitted by MichelSteve on Fri, 10/21/2011 - 11:38.
I just checked the MDAS rule and after this i got know that it is true.Any how tahnks for
recommending.
Franchises
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PMBOK 4 Formula's
Submitted by miansahib on Tue, 09/15/2009 - 22:08.
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,
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Can you pl. be more
Submitted by ChandraR on Wed, 01/13/2010 - 13:59.
Can you pl. be more specific how this question is related to PMP?
Thanks
Chandra
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How I remember EV formula
Submitted by Have2passfirsttry on Fri, 07/08/2011 - 00:59.
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
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Helpful
Submitted by twenty20 on Mon, 03/26/2012 - 08:44.
This is really helpful ! Thanks for compiling !!
Cheers, Naveen
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Formulas / Math for PMP
Submitted by buffele001 on Wed, 05/30/2012 - 00:50.
If a problem can have more than one way of being solved, write down all the ways. This is
because most math problems have an easy way and a hard way to solve, and the easy way
may be a different method each time.-Arthur van der Vant
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ROM RANGE
Submitted by sspawar on Thu, 08/23/2012 - 15:20.
PMBOK 4 IS +/- 50%,
AND IN ABOVE LIST IT IS -50/+100 %, I THINK IT WAS IN PMBOK 3.
