10/13/2014 PMP Formulas and Calculation for the Certification Demystified

PMP Formulas mentioned in the

PMBOK Guide 5th Edition
PMP FORMULAS

Name Formula Interpretation

(Abbreviation)
No. of
Communication n (n-1)/2 n should include
the project
Channels manager
n = number of members in the team
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
Schedule
Performance SPI = EV/PV <1
behind schedule
Index (SPI) = 1 on schedule
EV = Earned Value > 1 ahead of
schedule
PV = Planned Value

Cost
Performance CPI = EV/AC <1
Over budget
Index (CPI) = 1 On budget
EV = Earned Value > 1 Under
budget
AC = Actual Cost
sometimes the
term cumulative
CPI would be
shown, which
actually is the CPI
up to that
moment
Schedule
Variance (SV) SV = EV PV <0
Behind schedule
= 0 On
EV = Earned Value schedule
> 0 Ahead of
PV = Planned Value schedule

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Cost Variance <0
10/13/2014 PMP Formulas and Calculation for the Certification Demystified

(CV) Over budget

CV = EV AC = 0 On budget
> 0 Budget
EV = Earned Value budget
AC = Actual Cost

Estimate at
Completion EAC = AC + New if the original
estimate is based
(EAC) if original
is flawed
ETC on wrong
data/assumptions
or circumstances
AC = Actual Cost
have changed
New ETC = New Estimate to Completion

Estimate at
Completion EAC = AC + BAC the variance is
caused by a one-
(EAC) if BAC
remains the
EV time event and is
not likely to
same happen again
AC = Actual Cost
BAC = Budget at completion
EV = Earned Value

Estimate at
Completion EAC = BAC/CPI if the CPI would
remain the same
(EAC) if CPI till end of project,
remains the BAC = Budget at completion i.e. the original
same estimation is not
CPI = Cost performance index
accurate

Estimate at
Completion EAC = AC + (BAC - use when the
question gives all
(EAC) if
substandard
EV)/(CPI*SPI) the values (AC,
BAC, EV, CPI
performance and SPI),
continues AC = Actual Cost otherwise, this
BAC = Budget at completion formula is not
likely to be used
EV = Earned Value
CPI = Cost Performance Index
SPI = Schedule Performance Index

To-Complete
Performance TCPI = (BAC EV)/
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Index (TCPI) = 1 On budget
10/13/2014 PMP Formulas and Calculation for the Certification Demystified

> 1 Over
(BAC AC) budget
BAC = Budget at completion
EV = Earned value
AC = Actual Cost

TCPI = Remaining
Work
/Remaining Funds
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index

Estimate to
Completion ETC = EAC -AC
EAC = Estimate at Completion
AC = Actual Cost

Variance at
Completion VAC = BAC EAC <0
Under budget
= 0 On budget
BAC = Budget at completion > 0 Over
budget
EAC = Estimate at Completion

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

Standard
Deviation (P O)/6 this is a rough
estimate for the
standard
O= Optimistic estimate deviation
P= Pessimistic estimate
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10/13/2014 PMP Formulas and Calculation for the Certification Demystified

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

LF EF
LF = Late finish
EF = Early finish

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