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PMP Formulas and Calculation for the Certification Demystified

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PMP Formulas and Calculation for


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Summary: Many consider the most difficult part of the


PMP exam to be the calculations and PMP formulas.
Luckily PMP calculation is not quantum physics, you just

How Much Time, Effort and Money is


Required for the PMP Credential?

need to understand and memorize the following PMP


Calculation formulas. Keep calm and study on! (You can
read more aboutmy PMP exam and certification journey
here.)

PMP Formulas mentioned in


the PMBOK Guide 5th Edition

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PMP Formulas
Name

Formula

Interpretation

n (n-1)/2

n should include

(Abbreviation)
No. of
Communication
Channels

the project
n = number of members in the

Schedule and Take the PMP


Certification Exam

manager

team

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PMP Formulas and Calculation for the Certification Demystified

Name

Formula

Interpretation

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WEBSITE SPONSOR

(Abbreviation)

e.g. if the no. of


team members
increase from 4 to
5, the increase in
communication
channels:
5(5
5-1)/2 4
(4
4-1)/2 = 4

Schedule
Performance
Index (SPI)

< 1 behind

SPI = EV/PV

schedule

EV = Earned Value = 1 on schedule


> 1 ahead of

PV = Planned Value

schedule
< 1 Over budget
= 1 On budget
> 1 Under

Cost
Performance
Index (CPI)

budget

CPI = EV/AC

sometimes the

EV = Earned Value

term cumulative

AC = Actual Cost

PMP CERTIFICATION EXAM

CPI would be
shown, which
actually is the CPI
up to that moment
< 0 Behind

SV = EV PV

schedule

Schedule
Variance (SV)

> 0 Ahead of
schedule

CV = EV AC

< 0 Overbudget

Cost Variance

> 0 Within

EAC = AC + New
ETC

budget
if the original
estimate is based

Completion
(EAC) if original
is flawed

Completion
(EAC) if BAC

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AC =Actual Cost
New ETC = New Estimate to

data/assumptions
or circumstances

Completion

Estimate at

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applicants first-hand
experience

= 0 On budget
EV = Earned Value
AC = Actual Cost

Estimate at

PMP Formulas and Calculation


for PMP Certification
Demystified

EV = Earned Value = 0 On schedule


PV = Planned Value

(CV)

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EAC=AC + BAC
EV

have changed
the variance is
caused by a onetime event and is

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PMP Formulas and Calculation for the Certification Demystified

Name

Formula

Page 3 of 10

Interpretation

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Agile Metrics

not likely to

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and PMI-ACP Certification

(Abbreviation)
remains the
same

AC =Actual Cost
BAC = Budget at completion

happen again

EV = Earned Value

if the CPI would


Estimate at
Completion

EAC= BAC/CPI

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Agile Team

remain the same


till end of project,

(EAC) if CPI
remains the

BAC = Budget at completion


CPI = Cost performance index

i.e. the original


estimation is not

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same
accurate

Estimate at

EAC=AC + (BAC
-EV)/(CPI*SPI)

use when the

Completion
(EAC) if
substandard
performance
continues

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question gives all


the values (AC,

AC =Actual Cost

BAC, EV, CPI and

BAC = Budget at completion

Passing the ITIL v3 Foundation


2011 Exam

EV = Earned Value SPI), otherwise, this


CPI = Cost Performance Index formula is not likely
to be used

SPI = Schedule Performance Index

TCPI= (BAC
EV)/
(BAC AC)

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BAC = Budget at completion


EV = Earned value

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AC =Actual Cost

<

To-Complete
Performance
Index (TCPI)

TCPI=
Remaining Work
/Remaining
Funds

Edward Chung,

1Under budget

PMP, shares here

= 1 On budget

his exam study notes,

> 1 Over budget

certification
experience and
lessons learned about
the PMP Certification,
PMI-ACP, ITIL v3 Foundation and Zend PHP.

BAC = Budget at completion

He hopes other may find it useful.

EV = Earned value
CPI = Cost performance index

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ETC= EAC -AC

 To search type and hit enter

Estimate to
Completion

EAC = Estimate at Completion


AC = Actual Cost

WEBSITE SPONSOR

VAC= BAC EAC

<0

Variance at
Completion

Underbudget
BAC = Budget at completion
EAC = Estimate at Completion

PERT

= 0 On budget
> 0 Over budget

(O + 4M + P)/6

Estimation

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PMP Formulas and Calculation for the Certification Demystified

Name

Formula

Page 4 of 10

Interpretation

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(Abbreviation)
O= Optimistic estimate

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M= Most Likely estimate


P= Pessimistic estimate

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(P O)/6
Standard
Deviation

this is a rough
estimate for the

O= Optimistic estimate
P= Pessimistic estimate

standard
deviation

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LS ES

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LS = Late start
= 0 On critical
ES = Early start
path
Float/Slack

LF EF

< 0 Behind
schedule

LF = Late finish
EF = Early finish

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Note: Wannadownload all PMP Formulasas a printable


file for your PMP Certification exam prep? Please share
this post to your social network first and you will be able
to see the download link. Thanks for helping this PMP
website grow!

The above 17 PMP formulas are all that youll need for the
PMP Exam. Learn them and understand their application.
You will be able to solve the calculation questions in the
certification exam.
However, if you are still struggling with PMP formulas or
you want some more guided descriptions on how to apply
them with PMP practice questions, you are advised to
explore the PM Exam Formulas Study Guideauthored by
Cornelius Fitchner (the same author of the acclaimed
online PMP Exam Prep course which I used to clear my
PMP exam thePM PrepCast).

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PMP Formulas and Calculation for the Certification Demystified

Page 5 of 10

Other articles in the series PMP Exam Preparation


1. An Introduction to PMBOK Guide 5th Edition: Knowledge Areas,
Processes and Process Groups
2. How to Study for PMI PMP? Learn PMI-ism First!
3. PMP Certification Study Notes 1 - Terms and Concepts
4. PMP Certification Study Notes 2/3 - Project Management
Processes and Knowledge Areas
5. PMP Certification Study Notes 4 - Project Integration
Management
6. PMP Certification Study Notes 5 - Project Scope Management
7. PMP Certification Study Notes 6 - Project Time Management
8. PMP Certification Study Notes 7 Project Cost Management
9. PMP Certification Study Notes 8 - Project Quality Management
10. PMP Certification Study Notes 9 - Project Human Resource
Management
11. PMP Certification Study Notes 10 - Project Communication
Management
12. PMP Certification Study Notes 11 - Project Risk Management
13. PMP Certification Study Notes 12 - Project Procurement
Management
14. PMP Certification Study Notes 13 - Project Stakeholder
Management
15. PMP / PMI-ACP Certification Study Notes - Professional and
Social Responsibility
16. Are You PMP Exam Ready? List of Free PMP Sample Exam
Questions with Benchmarks
17. PMP Formulas and Calculation for PMP Certification
Demystified

Most Popular Articles about PMP and PMI-ACP Certification


PMP Certification Exam
How to Get PMP 35 Contact Hours Fast and Easy?
Over 1000+ FREE Quality PMP Mock Exam / Practice Questions
A FREE Guide to PMP Formulas and Calculation
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How to Get PMI-ACP 21 Contact Hours?

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PMP Formulas and Calculation for the Certification Demystified

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Over 600+ FREE Quality PMI-ACP Mock Exam / Practice Questions

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Edward Chung

Edward Chung aspires to become a full-stack web developer and


project manager. In the quest to become a more competent
professional, Edward studied for and passed the PMP Certification,
ITIL v3 Foundation Certification, PMI-ACP Certification and Zend
PHP Certification. Edward shares his certification experience and
resources here in the hope of helping others who are pursuing
these certification exams to achieve exam success.

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8 OCT, 2014

13 OCT, 2013

Page 7 of 10

21 AUG, 2014

18 RESPONSES
Comments 18
Robert

Pingbacks 0

December 15, 2014 at 23:54

For the VAC formula, isnt your interpretation the opposite of Figure 7-12 on p.
219 of PMBOK 5e? That is, if as in the figure the EAC is greater than the BAC then
the VAC is negative and the project is running over budget. Please clarify.
Reply
Edward Chung

December 16, 2014 at 15:40

Hi Robert,
I have reviewed Figure 7-12 of the PMBOK Guide and found that the figure is for
a project that is over budget (the VAC is negative in this case and would require
the use of management reserve). The figure and the VAC formula are telling the
same thing.
Thanks!
Reply
Dave Murphy

February 11, 2015 at 08:21

In your first formula about the no. of comm. channel, should it not be 6 * 5 / 2
5*4 / 2 = 5
Assumingthe team number is not included PM. Its kind of confusing when to
add PM or not to add PM in the given number. Can you clarify?
Reply
Edward Chung

February 11, 2015 at 11:24

From my experience, if the question mentions the number of team


members, the PM is included.
I do agree sometimes the PM is not considered as team members, but
for calculation of communication channels, the PM is always included.
Reply

Dave Murphy

February 12, 2015 at 08:16

My understanding is, by default PM is included only when stakeholders # are


mentioned since PM is one of the stakeholders. For anything else, unless or
otherwise explicitly stated about the PM we should always add PM to the
number. Could you help me to get more details on this please? There are number
of questions in the exam, at least 2-4 questions are sure, depending on this. If
one question goes wrong all the questions in this area would probably go wrong
because of this confusion. All i need to know when to add PM and when not to
add PM to the given number.
Reply
Edward Chung

February 12, 2015 at 12:18

As fas as I know, PM is NOT considered as a stakeholder in the PMBOK


Guide as the PM is responsible for stakeholder management /
communication (though by definition, stakeholder can include the PM as
well as the team members). I did encounter 1 questions on my PMP
exam about communication channel and I included the PM as a team
member in the calculation. Hope this clarify your doubts.
Reply

Dave Murphy

February 12, 2015 at 14:48

Scenario 1: If the exam state that you (meaning PM) have 4 team members. So, in
this case the N = 4+1 = 5, correct?
Scenario 2: There are 7 stakeholders in the team. In this case, N = 7, correct?

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06-05-2015

PMP Formulas and Calculation for the Certification Demystified

Page 8 of 10

Scenario 3: You have 3 team members and 8 stakeholders. In this case, N=11,
correct?
Reply
Edward Chung

February 13, 2015 at 12:17

The question I encountered on the real PMP exam is more or less like
scenario 1.
I would agree scenario 1 and 2 are correct. But for scenario 3, I would
take N as 12 as it is said that you have 8 stakeholders, i.e. you is not
counted as a stakeholder.
Do you agree?
Reply

Massimo

February 26, 2015 at 01:00

PM is not counted as a stakeholder, but he is included as a team


member 8+3 = 11 where does the extra communication
channel (12) come from Edward?
Edward Chung

February 26, 2015 at 13:38

Hi Massimo,
For questions like this, you need to read the question *very*
carefully. You have 3 team members and There are 3
members in your team are DIFFERENT.
You have 3 team members meaning that there are 4 members in
the team.
Hope this help solve your queries. Thanks!

Sheryl

March 12, 2015 at 23:16

Edward your site is awesome. Our study group is really benefitting from your
posts. Just a note: you mention that you had a .pdf formula sheet download but
we cant seem to find it.
Reply
Edward Chung

March 13, 2015 at 10:21

Hi Sheryl,
Thanks for your comment. There is a box below the formula table which
will show the download once you have shared the post through
facebook, google+ or twitter. Thanks!
Reply

Nag

April 2, 2015 at 04:24

pls share the formula sheet. Thanks!


Reply
Tone

April 22, 2015 at 21:20

Hi,
great site, congratulations
.
I think you are missing one formula for TCPI: PMBOK page 224 last formula in the
table TCPI= (BAC-EV)/(EAC-AC).
Reply
Felicia

April 25, 2015 at 04:39

I liked the page on my facebook and did not receive the instant link or any link for
that matter to download the formulas in pdf. Please email to me. Thanks!
Reply
Urmimala Shome-Dinath

April 26, 2015 at 03:03

Hi! I shared via my Google+ acct but cant seem to access the download (not sure
if its because Im using Chrome) so can you email me the link to it please?
thanks!!
Reply
Urmimala Shome-Dinath

April 27, 2015 at 00:39

Hi Edward, I left a comment about not being able to access the link to the
download yesterday, but now I cant see it in the comments section. So, I hope

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06-05-2015

PMP Formulas and Calculation for the Certification Demystified

Page 9 of 10

you receive this. I shared on my G+ acct so could you please email me the PDF?
Thank you.
Reply
Nil

May 3, 2015 at 13:52

Good summary of the required formula. I was struggling to grasp the formula
required to pass the PMP. good job!
Reply

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