 ###### What Is The Format Of The PMP Exam?
November 27, 2017 December 7, 2017

## Complete How-to Guide for PMP Exam Formulas

Welcome to the complete how-to guide for PMP exam formulas. In the table below, you will see how and why each formula is used. I have posted the most common formulas used on the exam. There are however, other formulas, but most of which were used on previous PMP exams and are no longer used.

## Pert Estimation – Beta

(O + 4M + P) / 6

O = Optimistic

M = Most likely estimate

P = Pessimistic estimate

*Commonly used and preferred on PMP

## Pert Estimation – Triangular

(P + ML + O) / 3

O = Optimistic

ML = Most likely P = Pessimistic estimate

*Estimate duration of a scheduled activity

## Standard Deviation

(P – O) / 6

O = Optimistic

P = Pessimistic estimate

*Rough estimate for standard deviation

## Communication Channels

N (n-1) /2

*number of communication channels.

## Schedule Performance Index (SPI)

SPI = EV / PV

EV = Earned Value

PV = Planned Value

= 1 is great – you are progressing as planned

> 1 progressing faster than planned

< 1 not so good –  progressing slowly

## Cost Performance Index (CPI)

CPI = EV / AC

EV = Earned value, AC = Actual cost

= 1 is good.  1 for 1 spend.

> 1 is better. You are getting >1 for every \$1

< 1 not so good. You are getting <\$1 for every \$1

## Schedule Variance (SV)

SV = EV – PV

EV = Earned value,

PV = Planned Value

• Positive = ahead of schedule
• Neutral = on schedule
• Negative = behind schedule

## Cost Variance (CV)

CV = EV – AC

EV = Earned value

AC = Actual cost

• Negative = over budget (spent too much)
• Positive = under budget

## Estimate at Completion (EAC) – If BAC (budget at completion) remains the same

EAC = AC + BAC – EV (Estimate time to completion)

AC = Actual Cost

BAC = Budget at Completion

EV = Earned Value

*The variance is caused by a one-time event. Most likely won’t reoccur.

## Estimate at Completion (EAC) – If CPI (cost performance index) remains the same

EAC = BAC / CPI (Estimate time to completion)

BAC = Budget at Completion

CPI = Cost performance index

*If CPI remains the same (no variances) until the end of the project.

or

AC + (BAC – EV) – calculates actual cost to date plus remaining work

## Estimate at Completion (EAC) – If substandard performance continues

EAC = AC + (BAC – EV) / (CPI*SPI)

AC = Actual Cost

BAC = Budget at completion

EV = Earned Value

CPI = Cost performance index

SPI = Schedule performance index

Used when you are presented with all the values for each one. You probably won’t see one of these questions on the exam.

## To-Complete Performance Index (TCPI)

TCPI = (BAC – EV) / (BAC – AC)

TCPI = Remaining work/ remaining funds

<1 under budget

=1 on budget

>1 over budget

## Estimate to Completion

ETC = EAC – AC

EAC = Estimate at completion

AC = Actual cost

*Used to determine how much it will cost to finish project. How much more will you spend to finish.

## Variance at Completion

VAC = BAC – EAC

BAC = Budget at completion

EAC = Estimate at completion

<0 under budget

=0 on budget

>0 over budget

* Helps you determine if you will be over or under budget on completion.

## Net Present Value (NPV)

*The best project has the higher NPV = (better project)

Positive NPV is good, negative NPV is bad.

## Expected Monetary Value (EMV)

P x I

P = Probability, I = Impact

*Good for ranking risks