PMP Formulas Cheat Sheet

This PMP Formulas Cheat Sheet provides a quick reference to the essential formulas you'll need to know for the PMP exam. These formulas cover key areas such as cost management, schedule management, and risk management. Understanding these formulas is critical for both answering questions on the exam and applying project management principles effectively in your career.

Key PMP Formulas

1. Cost Management Formulas

Cost management is a crucial part of project management. These formulas will help you track and predict project costs.

  • Cost Performance Index (CPI):
    CPI = EV / AC
    Where:
    • EV = Earned Value
    • AC = Actual Cost
  • Schedule Performance Index (SPI):
    SPI = EV / PV
    Where:
    • EV = Earned Value
    • PV = Planned Value
  • Estimate at Completion (EAC):
    EAC = BAC / CPI
    Where:
    • BAC = Budget at Completion
    • CPI = Cost Performance Index
  • To-Complete Performance Index (TCPI):
    TCPI = (BAC - EV) / (BAC - AC)
    Where:
    • BAC = Budget at Completion
    • EV = Earned Value
    • AC = Actual Cost
  • Estimate to Complete (ETC):
    ETC = EAC - AC
    Where:
    • EAC = Estimate at Completion
    • AC = Actual Cost

2. Schedule Management Formulas

These formulas help you assess and manage your project schedule effectively.

  • Planned Value (PV):
    PV = (% of Project Completed) × BAC
    Where:
    • BAC = Budget at Completion
  • Earned Value (EV):
    EV = (% of Work Completed) × BAC
    Where:
    • BAC = Budget at Completion
  • Variance at Completion (VAC):
    VAC = BAC - EAC
    Where:
    • BAC = Budget at Completion
    • EAC = Estimate at Completion
  • Critical Path Method (CPM):
    CPM is used to calculate the longest duration of a project, determining the minimum project completion time. The formula is simple: add the durations of tasks along the critical path.

3. Risk Management Formulas

Risk management formulas help in calculating the potential impacts of risks and opportunities on your project.

  • Risk Probability and Impact Matrix:
    The formula used is:
    • Probability: Probability of a risk occurring (0-1 scale)
    • Impact: Impact of the risk if it occurs (1-5 scale)
    • Risk Score = Probability × Impact
    Use this formula to prioritize risks and manage them effectively.
  • Expected Monetary Value (EMV):
    EMV = Probability × Impact
    Where:
    • Probability = Chance of the risk occurring
    • Impact = Monetary impact of the risk
    Use EMV to assess the potential financial impact of risks.
  • Monte Carlo Simulation:
    This simulation method helps to predict the probability of different outcomes based on different variables, using a range of inputs to simulate potential future outcomes.

4. Other Key Formulas

In addition to cost, schedule, and risk management, here are some additional formulas used in various other project management processes:

  • Variance Analysis:
    Variance = (Planned - Actual)
    Used to determine the variance in any project variable, such as cost or schedule.
  • Float (Slack):
    Float = Latest Start Time (LST) - Earliest Start Time (EST)
    Or
    Float = Latest Finish Time (LFT) - Earliest Finish Time (EFT)
  • ROI (Return on Investment):
    ROI = (Benefit - Cost) / Cost
    Used to calculate the return on a project investment.

Conclusion

Knowing these formulas is key to your success on the PMP exam. Whether you're solving problems related to cost, schedule, or risk management, these formulas will provide the tools you need to work through complex project scenarios. Make sure to practice these formulas regularly, and incorporate them into your study routine to improve your chances of passing the PMP exam.