08 Oct PMP® Formulas : PMBOK® Guide 5th Edition

PMP® Formulas : PMBOK® Guide 5th Edition

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 need to understand and memorize the following PMP® Calculation formulas. Keep calm and study on!

No. of Communication Channelsn (n-1)/2

n = number of members in the team

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

Name (Abbreviation) Formula Interpretation
Schedule Performance Index (SPI) SPI = EV/PVEV = Earned Value

PV = Planned Value

< 1 behind schedule= 1 on schedule

> 1 ahead of schedule

Cost Performance Index (CPI) CPI = EV/ACEV = Earned Value

AC = Actual Cost

< 1 Over budget= 1 On budget

> 1 Under budgetsometimes the term ‘cumulative CPI’ would be shown, which actually is the CPI up to that moment

Schedule Variance (SV) SV = EV – PVEV = Earned Value

PV = Planned Value

< 0 Behind schedule= 0 On schedule

> 0 Ahead of schedule

Cost Variance (CV) CV = EV – ACEV = Earned Value

AC = Actual Cost

< 0 Over budget= 0 On budget

> 0 Budget budget

Estimate at Completion (EAC)
if original is flawed
EAC = AC + New ETCAC = Actual Cost

New ETC = New Estimate to Completion

if the original estimate is based on wrong data/assumptions or circumstances have changed
Estimate at Completion (EAC) if CPI remains the same EAC = BAC/CPIBAC = Budget at completion

CPI = Cost performance index

if the CPI would remain the same till end of project, i.e. the original estimation is not accurate
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

use when the question gives all the values (AC, BAC, EV, CPI and SPI), otherwise, this formula is not likely to be used
To-Complete Performance Index (TCPI) TCPI = (BAC – EV) /
(BAC – AC)BAC = Budget at completionEV = Earned value

AC = Actual Cost

TCPI = Remaining Work
/Remaining Funds

BAC = Budget at completion

EV = Earned value

CPI = Cost performance index

< 1 Under budget= 1 On budget

> 1 Over budge

Estimate to Completion EAC = Estimate at CompletionAC = Actual Cost
Variance at Completion VAC = BAC – EACBAC = Budget at completion

EAC = Estimate at Completion

< 0 Under budget= 0 On budget

> 0 Over budget

PERT Estimation (O + 4M + P)/6O= Optimistic estimate

M= Most Likely estimate

P= Pessimistic estimate

Standard Deviation (P – O)/6O= Optimistic estimate

P= Pessimistic estimate

this is a rough estimate for the standard deviation
Float/Slack LS – ESLS = Late start

ES = Early start

LF – EF

LF = Late finish

EF = Early finish

The above PMP® formulas are all that you’ll need for the PMP® Exam. Learn them and understand their application. Surely, you will be able to solve the calculation questions in the certification exam.

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