PMP Formula Reference

Every formula tested on the 2026 PMP exam.

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Earned Value Management (EVM)

Cost Variance (CV)

CV = EV – AC

Under budget (positive is good)·Over budget (negative is bad)

Schedule Variance (SV)

SV = EV – PV

Ahead of schedule·Behind schedule

Cost Performance Index (CPI)

CPI = EV / AC

CPI > 1: under budget·CPI < 1: over budget

Schedule Performance Index (SPI)

SPI = EV / PV

SPI > 1: ahead of schedule·SPI < 1: behind schedule

Estimate at Completion — Typical

EAC = BAC / CPI

Most common. Assumes current CPI holds for remainder.

Estimate at Completion — New Rate

EAC = AC + (BAC – EV)

Assumes remaining work done at planned rate.

Estimate at Completion — New Estimate

EAC = AC + ETC

Use when a new estimate for remaining work is available.

Estimate to Complete (ETC)

ETC = EAC – AC

How much more is needed to finish the project.

Variance at Completion (VAC)

VAC = BAC – EAC

Positive: under budget at end·Negative: over budget at end

To-Complete Performance Index (TCPI)

TCPI = (BAC – EV) / (BAC – AC)

Performance required on remaining work to meet BAC. TCPI > 1 = harder than current rate.

Schedule & Network

Communication Channels

N(N – 1) / 2

N = number of stakeholders

Total Float

Float = LS – ES = LF – EF

Zero float = critical path activity

Free Float

FF = ES(successor) – EF(activity)

Amount activity can slip without affecting successor's ES

Early Finish (EF)

EF = ES + Duration – 1

Used in network diagrams; some formulas use EF = ES + Duration

Late Start (LS)

LS = LF – Duration + 1

Backward pass calculation

Risk

Expected Monetary Value (EMV)

EMV = Probability × Impact

Used for decision trees and contingency reserve calculation

Total EMV (portfolio)

Total EMV = Σ(P × I) for all risks

Sum of all risk EMVs gives total exposure

Financial / Business Value

Return on Investment (ROI)

ROI = (Benefit – Cost) / Cost × 100%

Higher ROI = better investment

Net Present Value (NPV)

NPV = Σ [Cash Flow / (1 + r)^t]

r = discount rate, t = time period. Higher NPV = better project.

Payback Period

Payback = Investment / Annual Benefit

How long until investment is recovered. Lower = better.

Benefit-Cost Ratio (BCR)

BCR = Benefit / Cost

BCR > 1.0 = project delivers value. Higher BCR = better.

Internal Rate of Return (IRR)

NPV = 0 (solve for r)

The discount rate at which NPV = 0. Higher IRR = better project.

Quality (Statistics)

Standard Deviation (σ)

σ = (P – O) / 6

P = Pessimistic, O = Optimistic. Used in PERT.

PERT Estimate

E = (O + 4M + P) / 6

O = Optimistic, M = Most Likely, P = Pessimistic

Control Limits

UCL = μ + 3σ | LCL = μ – 3σ

±3 sigma contains 99.73% of all values in a normal distribution

Abbreviation Quick Reference

Abbr	Full Name	Definition
BAC	Budget at Completion	Total approved budget for the project
AC	Actual Cost	Real cost incurred for work performed
EV	Earned Value	Budgeted cost of work actually completed
PV	Planned Value	Budgeted cost of work scheduled to be done by now
EAC	Estimate at Completion	Expected total cost of the project at completion
ETC	Estimate to Complete	Expected cost to finish the remaining project work
VAC	Variance at Completion	Expected over/under budget at project end
TCPI	To-Complete Performance Index	Required CPI on remaining work to meet target
EMV	Expected Monetary Value	Probability × Impact; used for risk quantification
NPV	Net Present Value	Present value of future cash flows minus investment
IRR	Internal Rate of Return	Discount rate at which project NPV equals zero
PERT	Program Evaluation Review Technique	Weighted average estimate: (O + 4M + P) / 6

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