PMP formulas are very vital to pass the PMP certification exam. PMP Formulas PDF will be available for download soon.
| # | Formula Name | Formula | Abbreviations / Terms | Interpretation |
| 1 | Cost Variance (CV) | CV= EV-AC | Earned Value (EV) Cost Variance (CV) Actual Cost (AC) | < 0 Over budget = 0 On budget > 0 Within budget |
| 2 | Schedule Variance (SV) | SV= EV – PV | Schedule Variance (SV) Earned Value (EV) Planned Value (PV) | < 0 Behind schedule = 0 On schedule > 0 Ahead of schedule |
| 3 | Cost Performance Index (CPI) | CPI = EV / AC | Cost Performance Index (CPI) Earned Value(EV) Actual Cost(AC) | < 1 Over budget = 1 On the budget > 1 Under budget sometimes the term ‘cumulative CPI’ would be shown, which actually is the CPI up to that moment |
| 4 | Schedule Performance Index (SPI) | SPI = EV / PV | Performance Index (SPI) SPI = EV / PV Schedule Performance Index (SPI) Earned Value (EV) Planned Value (PV) | < 1 behind schedule = 1 on schedule > 1 ahead of schedule |
| 5 | Estimate at Completion (EAC) The most common way to determine EAC is a “bottoms-up” formula | EAC = AC + Bottom-up ETC | Actual Cost(AC) Estimate to c Complete (ETC) | The bottom-up ETC is the sum of how much all the remaining estimated costs will be. This may be provided by different people working on the project. The actual costs (AC) are added to the forecasted remaining spending – the estimate to complete (ETC). |
| 6 | Estimate at Completion (EAC) | EAC = BAC / Cumulative CPI | Budget at completion(BAC) Estimate at Completion (EAC) Cost Performance Index (CPI) | This formula is used when the original estimation is met without any deviation. |
| 7 | Estimate at Completion (EAC) if BAC remains the same | EAC = AC + (BAC – EV) | Actual Cost(AC) Budget at completion(BAC) Earned Value(EV) | the variance is caused by a one-time event and is not likely to happen again |
| 8 | Estimate at Completion (EAC) if substandard performance continues | EAC = AC + [BAC – EV / (Cumulative CPI* Cumulative SPI)] | Budget at completion(BAC) Earned Value (EV) Cost Performance Index (CPI) Schedule Performance Index (SPI) | use when the question gives all the values (AC, BAC, EV, CPI and SPI), otherwise, this formula is not likely to be used |
| 9 | No. of Communication Channels | n (n-1)/2 | number of members in the team (n) | n should include the project manager e.g. if the no. of team members increase from 4 to 5, the increase in communication channels: 5(5-1)/2 – 4(4-1)/2 = 4 |
| 10 | Estimate at Completion (EAC) if original is flawed | EAC = AC + New ETC | Actual Cost (AC) New Estimate to Completion (New ETC) | if the original estimate is based on wrong data/assumptions or circumstances have changed |
| 11 | Estimate at Completion (EAC) if substandard performance continues | EAC = AC + (BAC – EV)/(CPI*SPI) | Actual Cost (AC) Budget at completion (BAC) Cost Performance Index (CPI) Earned Value (EV) Schedule Performance Index (SPI) | use when the question gives all the values (AC, BAC, EV, CPI and SPI), otherwise, this formula is not likely to be used |
| 12 | To-Complete Performance Index (TCPI) | TCPI = (BAC – EV) / (BAC – AC)
| Budget at completion (BAC) Actual Cost (AC) Earned value (EV) To-Complete Performance Index (TCPI) Cost performance index (CPI) | < 1 Under budget = 1 On the budget > 1 Over budget |
| 13 | To-Complete Performance Index (TCPI) | TCPI = Remaining Work /Remaining Funds | Budget at completion (BAC) Actual Cost (AC) Earned value (EV) To-Complete Performance Index (TCPI) Cost performance index (CPI) | < 1 Under budget = 1 On budget > 1 Over budget |
| 14 | Estimate to Completion | ETC = EAC -AC | Estimate at Completion(EAC) Actual Cost(AC) Estimate to Completion(ETC) | |
| 15 | Variance at Completion(VAC) | VAC = BAC – EAC | Budget at completion(BAC) Estimate at Completion(EAC) | < 0 Over budget = 0 On budget > 0 Under budget |
| 16 | Estimate at Completion (EAC) if CPI remains the same | EAC = BAC/CPI | Estimate at Completion (EAC) Budget at completion(BAC) Cost performance index(CPI) | if the CPI would remain the same till end of project, i.e. the original estimation is not accurate |
| 17 | PERT Estimation | (O + 4M + P)/6 | O= Optimistic estimate M= Most Likely estimate P= Pessimistic estimate | |
| 18 | Standard Deviation | (P – O)/6 | O= Optimistic estimate P= Pessimistic estimate | this is a rough estimate for the standard deviation |
| 19 | Float/Slack | LS – ES | LS = Late start ES = Early start | = 0 On the critical path < 0 Behind schedule |
| 20 | Float/Slack | LF – EF | LF = Late finish EF = Early finish | = 0 On the critical path < 0 Behind schedule |
These formulas will definitely helpful for solving PMP Exam Questions. Each PMP formula has been described in a proper way to understand the Formula’s name, the formula itself, terms used in the formula, and interpretation (if any). Learn these formulas and understand their purpose. You will be able to solve the calculation questions in the PMP Certification Exam. For those considering furthering their education online, our TIA Education Courses Review provides a thorough evaluation of their offerings.
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