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PMP Exam Formulas Cheat Sheet
PMP Formulas Cheat Sheet: Integration Management
Present Value (PV) Formula:
where FV = Future Value, R = Rate of Interest Per year, n = Number of Years
Payback Period (PP) Formula:
where the length of time it takes the company to get back the initial cost of producing a product / services. Shorter the Payback Period is better the project.
Net Present Value (NPV) Formula:
where higher NPV is better.
Internal Rate of Return (IRR) Formula:
where IRR is bigger the better.
Benefit Cost Ratio (BCR) Formula:
where BCR is the cost benefit analysis. BCR is bigger the better. If BCR < 1, then project is rejected. and if BCR > 1, then project is accepted.
Return on Invested Capital (ROIC) Formula:
where ROIC is bigger the better.
Economic Value Add Benefit (EVA) Formula:
where Cost of Capital = Revenue – Op Exp – Taxes. EVA is bigger the better.
Opportunity Cost (OC) Formula:
where OC is smaller the better.
Working Capital (WC) Formula:
where WC is bigger the better.
Return on Sale (ROS) Formula:
where ROS is bigger the better.
Return on Assets (ROA) Formula:
where ROA is bigger the better.
Return on Investment (ROI) Formula:
where ROI is bigger the better.
Discounted Cash Flow (DCF) Formula:
where DCF is bigger the better.
PMP Exam Formulas Study Guide PDF: Schedule Management
Expected Activity Duration (EAD) Formula (Triangular Distribution):
where P = Pessimistic, M = Most Likely, O = Optimistic
Expected Activity Duration (EAD) Formula (Beta Distribution):
where P = Pessimistic, M = Most Likely, O = Optimistic
Standard Deviation (SD) Formula
where P = Pessimistic, O = Optimistic
Variance (Var) Formula
where P = Pessimistic, O = Optimistic
Total Float or Slack (TF or TS) Formula:
where ES = Early Start, EF = Early Finish, LS = Late Start, LF = Late Finish,
Activity Duration (AD) Formula:
where ES = Early Start, EF = Early Finish, LS = Late Start, LF = Late Finish,
PMP Certification Exam Formulas: Procurement Management
Sharing Ratio (SR) Formula:
where How cost saving or overrun will be shared, Y% = Buyer’s Share Ratio, and Z% = Seller’s Share Ratio
Targeted Price (TP) Formula:
where TC = Targeted Cost, TF = Targeted Fee
Final Price (FP) or Actual Fee (AF) Formula:
where AC = Actual Cost, TF = Targeted Fee, Z% = Seller’s Share Ratio
Saving Formula:
where TC = Targeted Cost, AC = Actual Cost
Bonus Formula:
where Z% = Seller’s Share Ratio
Contract Cost (CC) Formula:
where Z% = Seller’s Share Ratio
Total Cost (TC) Formula:
where CC = Contract Cost
PMP Exam Formula Guide: Communication Management
Number of Communication Channels Formula:
where N = Number of Project Members including Project Manager
PMP Exam Prep Formulas: Risk Management
Expected Monetary Value (EVM) Formula:
where EV = Earned Value, and AC = Actual Cost
PMP Exam Maths Formulas: Earned Value Management (EVM)
Budget At Completion (BAC) Formula:
where
Planned Value (PV) Formula:
where BAC = Budget At Completion
Actual Cost (AC) Formula:
where AC = Actual Cost
Earned Value (EV) Formula:
where BAC = Budget At Cost
Cost Variance (CV) Formula:
where EV = Earned Value, AC = Actual Cost
Cost Variance % (CV%) Formula:
where CV = Cost variance, EV = Earned Value
Schedule Variance (SV) Formula:
where EV = Earned variance, PV = Planned Value
Schedule Variance % (SV%) Formula:
where SV = Schedule variance, PV = Planned Value
Variance At Completion(VAC) Formula:
where BAC = Budget At Completion, EAC = Estimate At Completion
Cost Performing Index (CPI) Formula:
where EV = Earned Value, AC = Actual Cost, CPI = 1 means GOOD, CPI > 1 means Typical GOOD, CPI < 1 means BAD.
Schedule Performing Index (SPI) Formula:
where EV = Earned Value, PV = Planned Value, SPI = 1 means GOOD, SPI > 1 means Typical GOOD, SPI < 1 means BAD.
Estimate At Completion (EAC) Formula:
where AC = Actual Cost, BAC = Budget At Completion, EV = Earned Value, CPI = Cost Performing Index
Estimate To Complete (ETC) Formula:
where EAC = Earned At Cost, AC = Actual Cost