Earned value, three-point estimating, communication channels, EMV, financial selection, control charts, and more — every formula you need for the PMP® and CAPM® exams, explained with interpretation rules and study strategies. Download the free 1-page cheat sheet or practice with 150 dedicated formula questions.
Project management formulas appear on both the PMP® and CAPM® exams. The question count is modest — anywhere from 2 to 5 calculation questions per sitting — but the formulas underpin a much larger set of conceptual and situational questions about earned value analysis, forecasting, risk quantification, and project selection. Some questions present a scenario and ask you to apply the formula; others test understanding of what a result means without requiring any arithmetic. A candidate who understands what CPI and SPI mean, not just how to compute them, will answer those situational items faster and more accurately.
This page covers every formula category tested on the current PMP and CAPM Exam Content Outlines: Earned Value Management, three-point estimating, communication channels, Expected Monetary Value, financial metrics, control charts, Point of Total Assumption, cost budgeting, depreciation, and agile velocity calculations. Each formula includes the expression and a brief interpretation note so you can move from memorization to applied understanding.
BrainBOK provides a complete formula preparation system: a free downloadable Exam Formula Cheat Sheet for quick reference, a comprehensive PM Formula Study Guide (PDF) with worked examples for Plus and Pro subscribers, dedicated PM Formula Challenge Exams (100 PMP / 50 CAPM questions), and formula-tagged flashcards for daily review.
Every formula below appears on the current PMP and CAPM Exam Content Outlines. EVM is the largest category and the most likely source of calculation questions. The remaining categories each contribute one to three formulas.
| Formula | Expression | Interpretation |
|---|---|---|
| Earned Value | EV = % Complete × BAC | Budgeted cost of work actually performed |
| Planned Value | PV = Planned % Complete × BAC | Budgeted cost of work scheduled to date |
| Cost Variance | CV = EV − AC | Positive = under budget; Negative = over budget |
| Schedule Variance | SV = EV − PV | Positive = ahead of schedule; Negative = behind schedule |
| Cost Performance Index | CPI = EV / AC | > 1.0 = under budget; < 1.0 = over budget |
| Schedule Performance Index | SPI = EV / PV | > 1.0 = ahead of schedule; < 1.0 = behind schedule |
| Estimate at Completion (typical) | EAC = BAC / CPI | Use when current cost trend will continue |
| Estimate at Completion (atypical) | EAC = AC + (BAC − EV) | Use when past variances were one-time events |
| Estimate at Completion (composite) | EAC = AC + [(BAC − EV) / (CPI × SPI)] | Use when both cost and schedule trends will continue |
| Estimate to Complete | ETC = EAC − AC | Cost of remaining work |
| Variance at Completion | VAC = BAC − EAC | Positive = expected to finish under budget; Negative = expected to exceed budget |
| TCPI (against BAC) | TCPI = (BAC − EV) / (BAC − AC) | > 1.0 = must perform better than current pace to hit original budget; < 1.0 = on track |
| TCPI (against EAC) | TCPI = (BAC − EV) / (EAC − AC) | > 1.0 = must perform better than current pace to hit revised estimate; < 1.0 = achievable |
| Formula | Expression | Interpretation |
|---|---|---|
| Triangular Estimate | E = (O + M + P) / 3 | Simple average of three estimates |
| Beta (PERT) Estimate | E = (O + 4M + P) / 6 | Weighted toward the most likely value |
| Standard Deviation | σ = (P − O) / 6 | Spread of a single activity estimate |
| Variance | σ² = [(P − O) / 6]² | Used to combine activity uncertainties |
| Formula | Expression | Interpretation |
|---|---|---|
| Communication Channels | Channels = n(n − 1) / 2 | n = number of people; adding one person to a 10-person team increases channels from 45 to 55 |
| Formula | Expression | Interpretation |
|---|---|---|
| Expected Monetary Value | EMV = Probability × Impact | Calculate per risk event; sum all events for total project EMV |
| Decision Tree Value | Node Value = Σ (Probability × Outcome) for each branch | Compare decision nodes to select the option with the highest net EMV |
| Formula | Expression | Interpretation |
|---|---|---|
| Net Present Value | NPV = Σ [Cash Flow / (1 + r)^t] | Higher NPV = better investment; select projects with NPV > 0 |
| Benefit-Cost Ratio | BCR = Benefits / Costs | > 1.0 = viable project; higher is better |
| Return on Investment | ROI = (Net Profit / Cost) × 100% | Higher percentage = better return |
| Internal Rate of Return | IRR = discount rate where NPV = 0 | Higher IRR = better investment; compare against hurdle rate |
| Payback Period | Payback Period = Investment / Annual Cash Flow | Shorter = faster recovery of initial investment |
| Formula | Expression | Interpretation |
|---|---|---|
| Upper Control Limit | UCL = μ + zσ | Typically z = 3 (3-sigma = 99.73% of data within limits) |
| Lower Control Limit | LCL = μ − zσ | Points outside UCL/LCL indicate special-cause variation |
| Formula | Expression | Interpretation |
|---|---|---|
| Point of Total Assumption | PTA = [(Ceiling Price − Target Price) / Buyer's Share Ratio] + Target Cost | Above this cost, the seller absorbs 100% of the overrun |
| Formula | Expression | Interpretation |
|---|---|---|
| Cost Baseline | Cost Baseline = Σ Work Package Estimates + Contingency Reserves | Budget at Completion (BAC) equals the cost baseline; excludes management reserves |
| Project Budget | Project Budget = Cost Baseline + Management Reserves | Total authorized budget for the project |
| Crash Cost per Unit of Time | Crash Cost/Time = (Crash Cost − Normal Cost) / (Normal Time − Crash Time) | Lower cost per unit = better candidate for crashing |
| Formula | Expression | Interpretation |
|---|---|---|
| Straight-Line Depreciation | Depreciation = (Asset Cost − Salvage Value) / Useful Life | Equal expense each period; most common method on the exam |
| Formula | Expression | Interpretation |
|---|---|---|
| Velocity | Velocity = Story Points Completed / Sprint | Average over 3+ sprints for reliable forecasting |
| Estimated Sprints Remaining | Sprints = Remaining Story Points / Average Velocity | Used for release planning and stakeholder communication |
| Planned Value per Sprint | Sprint Value = Velocity × Cost per Story Point | Bridges agile delivery to EVM-style cost tracking |
Formulas reward a structured study approach. Rote memorization gets you through simple "calculate CPI" items, but understanding the relationships between formulas prepares you for the situational questions that make up the bulk of the exam.
Everything you need to learn, practice, and retain project management formulas for the PMP and CAPM exams.
Start with the free Exam Formula Cheat Sheet for a quick overview, then build confidence with 150 dedicated formula practice questions and a comprehensive study guide. Every calculation question on exam day is a point you can earn with preparation.