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 (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic 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 - 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 AC + (BAC - EV) / CPI -- Future Variance would be typical 10. Est. To Complete Percentage complete 11. Var. At Completion 12. To Complete Performance Index TCPI 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 ) 13. Net Present Value 14. Present Value PV Bigger is better (NPV) FV / (1 + r)^n

15. Internal Rate of Return 16. Benefit Cost Ratio

Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback VS. cost) Or PV or Revenue / PV of Cost

17. Payback Period

Less is better Net Investment / Avg. Annual cash flow.

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)

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%

Sigma

Return on Sales ( ROS )

Net Income Before Taxes (NEBT) / Total Sales OR Net Income After Taxes ( NEAT ) / Total Sales

Return on Assets( ROA )

NEBT / Total Assets OR NEAT / Total Assets NEBT / Total Investment OR NEAT / Total Investment Current Assets - Current Liabilities Cash Flow X Discount Factor

Return on Investment ( ROI )

Working Capital Discounted Cash Flow

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)