PMP® Exam Formula

Cheat Sheet
For more information about a particular formula, click the formula’s name. An Educate 360 Brand

FORMULA NAME FORMULA

Earned Value (EV)

EV enables the project manager to compute performance indices or burn
rates for cost and schedule performance, which provides information on EV = % of completed work x Budget
how well the project is doing or performing relative to its original plans.

Also known as BCWP; amount of work actually completed

EAC= AC + (BAC - EV) / (CPI x SPI)

Estimate at Completion (EAC) Cost and Schedule for an updated budget forecast

Estimate at Completion is the expected budget at project end based on

variances that occurred. AC + BAC - EV AC + ETC BAC / CPI

Majority of budget accurate Initial estimates Steady progress aligned

despite some changes wrong or obsolete to the original estimate

Variance at Completion (VAC)

A projection of the amount of budget deficit or surplus expressed as the VAC = BAC - EAC
difference between the budget at completion and the estimate at
completion.

Cost Performance Index (CPI)

The Cost Performance Index (CPI) is a measure of the cost efficiency of CPI = EV / AC
budgeted resources, expressed as a ratio of earned value to actual cost.

Schedule Performance Index (SPI) SPI = EV / PV

The Schedule Performance Index (SPI) is a measure of schedule efficiency,
expressed as the ratio of earned value to planned value. SPI < 1 = behind schedule, SPI > 1 = ahead of schedule

Cost Variance (CV)

Cost variance (CV) measures project progress against the project’s cost
baseline. Calculating a CV will help you determine any variance from CV = EV - AC
the project’s monetary budget. Cost variance measures the project
cost performance.

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FORMULA NAME FORMULA

Schedule Variance (SV)

Schedule Variance is to determine how ahead of or behind schedule SV = EV - PV
you are. Types of Schedule Variance: Point-in-time Schedule Variance
and Cumulative Schedule Variance

Program Evaluation & Review Technique (PERT)

PERT = (O+(4M)+L) / 6
The PERT approach, or Program Evaluation and Review Technique, is
also known as a beta distribution or weighted average. This three-point
estimating formula gives more weight to the most likely estimate (M). O = Optimistic | M = Most Likely | L = Least Likely

Triangular Distribution
(O+M+L) / 6
The triangular distribution is also known as a simple average. This form of
three-point estimating is based on the average of each of the three O = Optimistic
estimated values. Simply add O+M+L and divide by three to get your M = Most Likely

three-point estimate (E). L = Least Likely

Parametric Estimating
Parametric estimating is a simple statistics-based tool used to produce (a_old / p_old) x (p_curr)
estimates for a project’s cost, duration, and effort. It can be used early
on in high-level project planning. This formula assumes a linear a_old = historic amount of cost or time The most likely estimate (highest probability)
relationship between the parameters and the cost or time. There are p_old = historic value of the parameter Optimistic estimate (best-case scenario)

two types of parametric estimating results: Deterministic Estimates p_curr = value of that parameter in your current project Least likely estimate (pessimistic scenario)

and Probabilistic Estimates

Expected Monetary Value (EMV)

EMV analysis is one of two techniques used in quantitative risk analysis. EMV = Probability x Impact
This statistical concept considers all possible future outcomes to
calculate the likely average outcome. 

Free Float
ES of next Activity - EF of current Activity - 1
Amount of time that an activity can be delayed without delaying the early
start date or any successor or violating a schedule constraint, only EF = Early Finish
calculated on the last activity in an activity sequence. ES = Early Start

Total Float (LF - EF) or (LS - ES)

Amount of time that a schedule activity can be delayed or extended from
its early start date without delaying the project finishd ate or violating a LF = Late Finish
EF = Early Finish
schedule constraint, calcualted at path level of activities. LS = Late Start
ES = Early Start

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FORMULA INTERPRETATION

Earned Value (EV) Program Evaluation & Review Technique (PERT)

Earned Value Management connects cost and schedule data for PERT is a three-point estimating, which is a formula that can
a project to answer the question of: “Is the project behind, on, or help determine the expected scope, schedule, and costs for
ahead of schedule?”  a project and its components.

Estimate at Completion (EAC) Triangular Distribution

EAC provides “a more dynamic picture of the project budget” for Triangular Distribution is a three-point estimating, which is a
those engaged in ongoing projects. formula that can help determine the expected scope, schedule,
and costs for a project and its components.

Variance at Completion (VAC) Parametric Estimating

Positive VAC: The project will not fully use all of the planned Parametric estimating requires project managers to model the
budget by completion. project using a set of predefined algorithms. This requires
historical data from past projects or public resources. These
0 for VAC: By project completion all of the planned budget
equations may come from established algorithms or past
will be used.
project models but should be scaled to fit the circumstances of
Negative VAC: The project will exceed the planned budget the current project.
by completion.

Cost Performance Index (CPI) Expected Monetary Value (EMV)

The CPI could indicate the initial budget was not aligned with Typically, you should assume any option with a positive EMV is
the project outcomes or estimates were too conservative. The worth pursuing. Your project may also require you to choose
CPI is also used to project cost incurrence for the future periods between multiple options. Calculating and comparing the
of a project, e.g. in the context of re-estimation of budgets. overall EMV for each potential scenario’s outcomes will allow
you to select the best option.

Schedule Performance Index (SPI) Free Float

SPI < 1 = behind schedule, SPI > 1 = ahead of schedule A value of 0 for VAC indicates that by project completion all of
the planned budget will be used.

Cost Variance (CV) Total Float

When dealing with CV, project managers must measure A negative VAC indicates the project will exceed the planned
deviations from the cost baseline and determine what kind of budget by completion.
corrective action to take. This type of variance analysis requires
calculating CV and interpreting it to explain why variances exist
and how to fix them.

Schedule Variance (SV)

The amount of project work ahead or behind schedule; SV < 0 =
behind schedule, SV > 0 = ahead of schedule

PROJECT MANAGEMENT ACADEMY © Copyright 2022, All rights reserved. Project Management Academy® and PMA® are registered trademarks of
Educate 360, LLC. PMP is a registered mark of the Project Management Institute, Inc.