Interested to grab some easy marks in the PMP exam?
Don’t lose sleep over PMP formulae.
The numerical questions in PMP exam are relatively easier.
Score easy marks by understanding few PMP formulae; and practice simple problems that applies these PMP formulae to project scenarios.
In this article, I have covered the most commonly used PMP formulae. Use this as a handy reference to help you learn, memorize the PMP formulae and practice thousands of PMP questions. Please note that numerical problems are extremely easy to score marks in the exam. So, your effort on learning the PMP formulae will be worth it.
Project Selection Methods
|Future Value FV =||PV (1+i)n|
|Present Value PV =||FV / (1+i)n|
|Benefit Cost Ratio =||Benefit/ Cost|
i = rate of interest
n = duration
Critical Path Method
|Total Float of an activity =||LS – ES (or) LF-EF|
|Free Float of an activity =||(ES)Successor – EF|
ES = Early Start
EF = Early Finish
LS = Late Start
LF = Late Finish
PERT Analysis with Beta Distribution
|Expected duration of an activity te =||(O+4M+P) / 6|
|Standard deviation of an activity σ =||(P – O) / 6|
|Variance of an activity =||σ2|
O = Optimistic duration
M = Most likely duration
P = Pessimistic duration
One Standard Deviation (1σ) = 68.26% chance that an activity will be completed in the range (te ±1σ) duration
2σ = 95.46% chance
3σ = 99.73% chance
6σ = 99.99% chance
Project Cost Management
|Cost Baseline =||Estimated Project Cost + Contingency Reserve|
|Project Budget =||Cost Baseline + Management Reserve|
Earned Value Management
|Schedule Variance SV =||EV – PV|
|Schedule Performance Index SPI =||EV / PV|
|Cost Variance CV =||EV – AC|
|Cost Performance Index CPI =||EV / AC|
|Estimate To Complete ETC =||EAC – AC|
|Variance At Completion VAC =||BAC – EAC|
EV = Earned Value
PV = Planned Value
AC= Actual Cost
BAC = Budget At Completion
Tip: Remember that all the right hand side of the first four formulae above starts with EV.
Estimate At Completion (EAC)
|EAC = BAC / CPI
[use this formula if current project performance is typical; you expect the project to perform similarly till end of the project]
|EAC = AC + (BAC – EV)
[use this formula if current project performance is atypical; you expect the project to perform to original expectation from now on]
|EAC = AC + (BAC – EV) / (SPI x CPI)
[use this formula if you want to complete the project in time, irrespective of what has happened so far]
To-Complete Performance Index (TCPI)
|TCPI = (BAC – EV) / (BAC – AC)
[based on BAC]
|TCPI = (BAC – EV) / (EAC – AC)
[based on EAC]
Project Risk Management
|Expected Monetary Value EMV = Probability x Impact|
Project Communications Management
|Number of communication channels = n (n-1) / 2|
Where n = number of stakeholders involved
I tried to provide you with the best collection of PMP formulae. Please understand each formula. If you have any queries on the above PMP formulae, please leave a comment below. Let us discuss and understand the formulae better.
Did I miss any important PMP formula? Please do me a favour by bringing it to my attention. I will update the article so that other PMP aspirants also get the benefit.
Certified Risk Management Professional (PMI-RMP)®
An enthusiastic project management practitioner and trainer.
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