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Formulas for PMP
Memorizing Inputs Tools and
!" #
Outputs.
Memory Aids for PMP Exam.
Point of Total Assumption Formulas for PMP
Submitted by admin on Mon, 09/10/2007 - 20:26.

Updated: 19th Sept.

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Login/Register If you think a formula is missing here but required in PMP exam. Post a comment and we will add to this
table.

Navigation 1. PERT (P + 4M + O )/ 6 Pessimistic, Most Likely,

Create content Optimistic
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Invite your friends 2. Standard Deviation (P - O) / 6
recent posts
News aggregator 3. Variance [(P - O)/6 ]squared

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Formulas for PMP | PM Zilla - PMP Exam Prep ( Project Management Professional ) Page 2 of 8

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4. Float or Slack LS-ES and LF-EF

5. Cost Variance EV - AC

6. Schedule Variance EV - PV

7. Cost Perf. Index EV / AC

8. Sched. Perf. Index EV / PV

9. Est. At Completion (EAC) 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 EAC - AC

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Formulas for PMP | PM Zilla - PMP Exam Prep ( Project Management Professional )
Percentage complete
11. Var. At Completion
12. To Complete Performance Index
TCPI
13. Net Present Value
14. Present Value PV
15. Internal Rate of Return
16. Benefit Cost Ratio
17. Payback Period
18. BCWS
19. BCWP
20. ACWP
21. Order of Magnitude Estimate
22. Budget Estimate
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Page 3 of 8
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 )
Bigger is better (NPV)
FV / (1 + r)^n
Bigger is better (IRR)
Bigger is better ((BCR or Benefit / Cost)
revenue or payback VS. cost)
Or PV or Revenue / PV of Cost
Less is better
Net Investment / Avg. Annual cash flow.
PV
EV
AC
-25% - +75% (-50 to +100% PMBOK)
-10% - +25%
2/21/2010
Formulas for PMP | PM Zilla - PMP Exam Prep ( Project Management Professional ) Page 4 of 8

23. Definitive Estimate -5% - +10%

24. Comm. Channels N(N -1)/2

25. Expected Monetary Value Probability * Impact

26. Point of Total Assumption (PTA) ((Ceiling Price - Target Price)/buyer's Share
Ratio) + Target Cost

• 1 = 68.27%
• 2 = 95.45%
Sigma
• 3 = 99.73%
• 6 = 99.99985%

Net Income Before Taxes (NEBT) / Total

Sales OR
Return on Sales ( ROS )
Net Income After Taxes ( NEAT ) / Total
Sales

NEBT / Total Assets OR

Return on Assets( ROA )
NEAT / Total Assets

NEBT / Total Investment OR

Return on Investment ( ROI )
NEAT / Total Investment

Working Capital Current Assets - Current Liabilities

Discounted Cash Flow Cash Flow X Discount Factor

Savings = Target Cost – Actual Cost

Contract related formulas
Bonus = Savings x Percentage

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Formulas for PMP | PM Zilla - PMP Exam Prep ( Project Management Professional ) Page 5 of 8

Contract Cost = Bonus + Fees

Total Cost = Actual Cost + Contract Cost

‹ PMP Study Material up Memorizing Inputs Tools and Outputs. ›

Login or register to post comments 52546 reads

#14 Present Value formula is incorrect.

Submitted by slangley on Mon, 03/31/2008 - 02:04.

As written the formula only works for 1 year.

The proper formula should be:

PV= FV / ((1 + r)^term)

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Correction made. Thanks a

Submitted by admin on Mon, 03/31/2008 - 03:37.

Correction made. Thanks a lot for reporting the error

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Sigma
Submitted by ram6s9 on Fri, 06/06/2008 - 21:28.

For the sake of completeness, I guess it would be better to include the Six Sigma value too.

6 Sigma = 99.99985

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Burn Rate formulae

Submitted by manishsinghal on Mon, 08/18/2008 - 07:27.

The formulae for Burn Rate is

1/CPI where CPI = Cost performance Index.

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PERT Formula Error

Submitted by barbarapmp on Tue, 09/16/2008 - 19:35.

The formula you have listed for PERT is incorret. The actual formula is:

(P+(4xM)+O)/6

OR to make it less confusing for folks:

(Pessimistic Estimate + (4 x Most Likely Estimate) + Optimistic Estimate) / 6

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PMBOK 4 Formula's
Submitted by miansahib on Tue, 09/15/2009 - 22:08.

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Formulas for PMP | PM Zilla - PMP Exam Prep ( Project Management Professional ) Page 7 of 8

Hi Gurus,

May I know some one maintaining these formula's and updating for PMBOK4.

also I want to know How many Formula's are in Total in PMBOK4 and can someone please share if
already got it.

Regards,

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Can you pl. be more

Submitted by ChandraR on Wed, 01/13/2010 - 13:59.

Can you pl. be more specific how this question is related to PMP?

Thanks

Chandra

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