{"id":3051,"date":"2021-10-01T11:37:41","date_gmt":"2021-10-01T16:37:41","guid":{"rendered":"https:\/\/projectmanagementacademy.net\/resources\/?page_id=3051"},"modified":"2022-04-13T09:17:32","modified_gmt":"2022-04-13T14:17:32","slug":"pmp-formulas-on-the-exam","status":"publish","type":"page","link":"https:\/\/projectmanagementacademy.net\/resources\/pmp-formulas-on-the-exam\/","title":{"rendered":"PMP\u00ae Formulas in Project Management"},"content":{"rendered":"\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<p>The&nbsp;<a href=\"https:\/\/pmi.org\/\">Project Management Institute (PMI)\u00ae<\/a>&nbsp;publishes <em>A Guide to the Project Management Body of Knowledge<\/em> (<em>PMBOK<\/em>\u00ae<em> Guide<\/em>) in which professional standards are documented. The PMI also oversees the Project Management Professional (PMP)\u00ae certification testing assessing candidates\u2019 knowledge of standards, formulas, and tools within the practice of project management. PMP\u00ae formulas are an integral part of Project Management. You can expect to see questions on the PMP\u00ae exam that reference formulas. These questions will require you to calculate a value, questions for using provided data and formulas to calculate an estimation, and questions that require math to use a formula for estimating value.<\/p>\n\n\n\n<p>There is no way to \u201ccheat\u201d the system as questions are administered via secure systems. To earn a passing score, PMP\u00ae test prep experts give an estimation of at least 35 hours of practice questions and study, including time to practice the basic math skills needed to calculate PMP\u00ae formulas. PMP\u00ae exam prep for formulas includes work to memorize formulas but also time to develop an understanding of the math behind a formula, the purpose of a formula, and the role of a formula in project management.<\/p>\n\n\n\n<p>Use the resources provided here to create your own \u201cPMP formulas cheat sheet\u201d for your PMP\u00ae exam study efforts. Your PMP exam practice should be based on <em>PMBOK<\/em>\u00ae<em> Guide <\/em>concepts and include PMP\u00ae formula based questions. On your study sheet, include not only each PMP\u00ae formula but notes on how the formula is explained in the context of project management.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png\" alt=\"PMP Formula Cheat Sheet\" class=\"wp-image-4712\" width=\"296\" height=\"374\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-809x1024.png 809w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-237x300.png 237w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet-768x972.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/21103157\/PMP-Formula-Cheat-Sheet.png 1010w\" sizes=\"auto, (max-width: 296px) 100vw, 296px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div style=\"height:48px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>PMP\u00ae Exam Formula Cheat Shee<\/strong>t<\/h2>\n\n\n\n<p id=\"block-14690051-2796-4b03-bcb7-95d54bd01fcd\"><em><em>Learn how to successfully use project management formulas after reading this cheat shee<\/em>t.<\/em><\/p>\n\n\n\n\t\t\t\t\t<script>\n\t\t\t\t\t\thbspt.enqueueForm({\n\t\t\t\t\t\t\tportalId: 3294842,\n\t\t\t\t\t\t\tformId: \"730482d7-eef5-49c7-aa16-898785e241ee\",\n\t\t\t\t\t\t\ttarget: \"#hbspt-form-1776559269000-6204238717\",\n\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t});\n\t\t\t\t\t<\/script>\n\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1776559269000-6204238717\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:10%\">\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Formulas within Project Management<\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Within the PMP\u00ae exam, formula questions fall into three general types: (1) PURPOSE, what the purpose of each PMP\u00ae formula is, (2) CALCULATION, what are values used to calculate PMP\u00ae formulas, and (3) APPLICATION, how a PMP formula applied. Within this study guide, note that PMP\u00ae formula names have been listed with a \u201cPMP\u201d label as it is how most are known informally. On the PMP\u00ae exam itself, there will not be specific references for \u201cPMP formulas\u201d but there will be questions showing formula diagrams with the intent to measure your ability to correctly perform an estimation and to accurately calculate value based on key formulas.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-1024x115.png\" alt=\"\" class=\"wp-image-4060\" width=\"706\" height=\"79\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-1024x115.png 1024w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-300x34.png 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-768x86.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-1536x173.png 1536w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122349\/PMP-Formulas-Silo-Landing-Page-2048x231.png 2048w\" sizes=\"auto, (max-width: 706px) 100vw, 706px\" \/><figcaption>Types of PMP Formula Questions<\/figcaption><\/figure><\/div>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h4 class=\"wp-block-heading\">PMP\u00ae Formula Categories<\/h4>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>PMP\u00ae formulas are broadly organized into six categories: <strong>Critical Path Method, Earned Value Management, Estimating Monetary Value, Estimating Techniques, General Project Management, <\/strong>and <strong>Project Selection Method. <\/strong><\/p>\n\n\n\n<p>Each category is based on the project management standards put forth in the <em>PMBOK\u00ae Guide<\/em>. To ace the PMP\u00ae certification exam, memorize \u201cPMP formulas\u201d for all of the categories. A calculation may be required in some PMP\u00ae questions, and time can be saved if you memorize the formula before taking the PMP exam.<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h4 class=\"wp-block-heading\">PMP\u00ae Practice Questions<\/h4>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>It is essential that any PMP\u00ae exam practice questions or tests you complete are based in verified PMP\u00ae exam prep training sources. Make sure you are able to jot down all PMP exam formulas quickly as part of study and exam prep. <\/p>\n\n\n\n<p>Create a sheet of formulas for easy reference during your PMP\u00ae exam study work and for use on the job. Remember that the value of PMP\u00ae formulas goes beyond passing the PMP\u00ae certification exam and enables you to practice project management at a professional level.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Critical Path Method Formulas<\/h2>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-image-fill\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122002\/Chalkboard-2-2.png);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"972\" height=\"1019\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122002\/Chalkboard-2-2.png\" alt=\"\" class=\"wp-image-4053 size-full\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122002\/Chalkboard-2-2.png 972w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122002\/Chalkboard-2-2-286x300.png 286w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122002\/Chalkboard-2-2-768x805.png 768w\" sizes=\"auto, (max-width: 972px) 100vw, 972px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Critical Path Method<\/strong><\/p><p><em>A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model.&nbsp;<\/em><\/p><cite>Source: The <a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\">PMI\u2019s online lexicon<\/a><\/cite><\/blockquote>\n\n\n\n<p class=\"has-text-align-left\">In the context of the PMP\u00ae exam, there may be questions that show a critical path diagram for which the PMP\u00ae test taker is asked, for example, to calculate the Free Float or to complete an estimation for how long work will take. Example images may be shown like this diagram from the PMI.org conference paper \u201c<a href=\"https:\/\/www.pmi.org\/learning\/library\/critical-path-method-calculations-scheduling-8040\">Understanding the basics of CPM calculations<\/a>\u201d in which rather than complicated math to calculate, the PMP\u00ae candidate does a simple calculation for estimating duration.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"439\" height=\"192\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/04\/13091721\/Understanding-the-Basics-of-CPM-Calculations-1.png\" alt=\"Understanding the Basics of CPM Calculations\" class=\"wp-image-5483\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/04\/13091721\/Understanding-the-Basics-of-CPM-Calculations-1.png 439w, https:\/\/e360-media.s3.amazonaws.com\/2022\/04\/13091721\/Understanding-the-Basics-of-CPM-Calculations-1-300x131.png 300w\" sizes=\"auto, (max-width: 439px) 100vw, 439px\" \/><\/figure><\/div>\n\n\n\n<p>For Critical Path method, the PMP\u00ae formulas and tools include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/free-float-vs-total-float\/\">Free Float vs Total Float<\/a><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Earned Value Management Formulas<\/h2>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile is-image-fill\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5-938x1024.png);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"938\" height=\"1024\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5-938x1024.png\" alt=\"\" class=\"wp-image-4055 size-full\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5-938x1024.png 938w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5-275x300.png 275w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5-768x838.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122049\/Chalkboard-5.png 1037w\" sizes=\"auto, (max-width: 938px) 100vw, 938px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Earned Value Management<\/strong><\/p><p>&#8220;<em>A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.<\/em>&#8220;<\/p><cite>Source: The <a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\">PMI\u2019s online lexicon<\/a><\/cite><\/blockquote>\n\n\n\n<p class=\"has-text-align-left\">The PMP\u00ae certification exam includes questions about, or driven by, the earned value (EV) performance. The Earned Value concept is around data-driven insight into the project progress and projections as measured against the original plans of timeline and costs. The earned value calculations are simple calculations that are only as accurate as the data used in the formula.<\/p>\n\n\n\n<p>An organization must have certain measures in place to fully realize the benefit of earned value. The formulas within earned value have their own purpose within project management and collectively work together within an earned value management system. For Earned Value formulas, some have to be calculated first in order to get the numerical value needed to calculate other formulas.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/project-management-value-and-earned-value\/\">Earned Value<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/forecasting-projects-in-progress-with-eac\/\">Estimate at Completion<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/budget-at-completion-bac\/\">Budget at Completion<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/emv-pmp-your-guide-to-expected-monetary-value-analysis\/\">Expected Monetary Value<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/variance-at-completion\/\">Variance at Completion<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/cost-variance-formula\/\">Cost Variance<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/earned-schedule\/\">Earned Schedule<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/pmp-schedule-variance\/\">Schedule Variance<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/tcpi-formula-for-pmp\/\">To Complete Performance Index<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/cost-performance-index-cpi-for-pmp-exam-prep\/\">Cost Performance Index<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/schedule-performance-index-spi-for-pmp-exam-prep\/\">Schedule Performance Index<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/probability-of-occurrence\/\">Probability of Occurrence<\/a><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n<\/div><\/div>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Studying for the PMP\u00ae Exam?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/projectmanagementacademy.net\/free-pmp-questions?cat=pmp-formulas\" style=\"background-color:#296078\">Practice Questions on Formulas<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Estimating Techniques<\/h2>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-image-fill\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-1024x683.jpg);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-1024x683.jpg\" alt=\"\" class=\"wp-image-4056 size-full\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-1024x683.jpg 1024w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-300x200.jpg 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-768x513.jpg 768w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-1536x1025.jpg 1536w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122140\/young-smart-mathematician-drawing-on-the-chalkboar-V5UQWPM-1-2048x1367.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Successful companies do not put budgets or resources behind every project no matter what. There will be a consistent project selection method to balance risk, investment, and potential return. Within a project selection process, project managers will leverage specific formulas. The PMP\u00ae exam could have questions with project comparisons as part of assessing the student\u2019s knowledge of formulas, how they are calculated, and how to apply data from those formulas. Many project selection formulas depend on data or information from other formulas. For example, to determine the Return on Investment (ROI) one must have the COI (Cost of Investment) and the Net Profit. PMP\u00ae exam questions may query if a project should be financially supported to proceed or if a project that is completed was a good investment. Project Managers use project scheduling formulas to manage risks and achieve desired business results.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/three-point-estimating-pmp-exam-resource\/\">Three Point Estimating<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/a-three-point-estimating-technique-pert\/\">Program Evaluation Review Technique<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/parametric-estimating\/\">Parametric Deviation<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/standard-deviation\/\">Standard Deviation<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/burn-rate-pmp\/\">Burn Rate<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-difference-between-parametric-vs-analogous-estimating-pmp\/\">Analogous vs Parametric Estimating<\/a><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">General Project Management<\/h2>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile is-vertically-aligned-top is-image-fill\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-1024x596.jpg);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"596\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-1024x596.jpg\" alt=\"\" class=\"wp-image-4057 size-full\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-1024x596.jpg 1024w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-300x174.jpg 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-768x447.jpg 768w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-1536x893.jpg 1536w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122224\/young-creative-mathematician-working-in-the-office-9EFCKAF-2048x1191.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Project Management<\/strong><\/p><p>The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.&nbsp;<\/p><cite>Source: The <a href=\"https:\/\/www.pmi.org\/pmbok-guide-standards\/lexicon\">PMI\u2019s online lexicon<\/a><\/cite><\/blockquote>\n\n\n\n<p>Your PMP\u00ae formulas cheat sheet may not need to include the actual PMI definition of project management. Rather, include on your study sheet those formulas which apply to project management in general.<\/p>\n\n\n\n<p>Project Managers working towards earning the PMP\u00ae certification should have a basic understanding of contracts and project formulas connected to different types of contracts. For example, the point of total assumption calculation can be used with fixed-price incentive fee contracts. The Project Point of Total Assumption is a very specific figure determined by calculations driven by a specific formula.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/point-of-assumption\/\">Point of Total Assumption<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/communication-channels-for-projects\/\">Communication Channels<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/benefit-cost-ratio-pmp-exam-guide\/\">Benefit Cost Ratio<\/a><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:35px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Project Selection Method<\/h2>\n\n\n\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-image-fill\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-1024x648.jpg);background-position:50% 50%\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"648\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-1024x648.jpg\" alt=\"\" class=\"wp-image-4058 size-full\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-1024x648.jpg 1024w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-300x190.jpg 300w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-768x486.jpg 768w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-1536x973.jpg 1536w, https:\/\/e360-media.s3.amazonaws.com\/2021\/11\/16122302\/brilliant-mathematician-reviewing-his-work-and-thi-2R638W4-2048x1297.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Project Managers should not only memorize formulas to prepare for the PMP\u00ae certification exam. Additionally, students should know the exam has project example questions in which the PMP\u00ae candidate must know when to use which PMP\u00ae formula, how to interpret calculations, and how estimated values can be applied to the management of the project. There are almost 12 formulas for project estimating covering budget, task duration, and project duration. Some estimating formulas require data from other project formulas to be calculated. There is no cheat sheet for accurate estimating; it is a science based on proven processes and formulas to calculate reliable data.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/internal-rate-of-return\/\">Internal Rate of Return<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/net-present-value-formula-pmp\/\">Net Present Value<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/return-on-investment\/\">Return on Investment<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/present-value-vs-future-value\/\">Future Value vs Present Value<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/make-or-buy-analysis\/\">Make or Buy Analysis<\/a><\/li><li><a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/payback-periods-in-project-management\/\">Payback Period<\/a><\/li><\/ul>\n<\/div><\/div>\n\n\n\n<div style=\"height:120px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The&nbsp;Project Management Institute (PMI)\u00ae&nbsp;publishes A Guide to the Project Management Body of Knowledge (PMBOK\u00ae Guide) in which professional standards are documented. The PMI also oversees the Project Management Professional (PMP)\u00ae certification testing assessing candidates\u2019 knowledge of standards, formulas, and tools within the practice of project management. PMP\u00ae formulas are an integral part of Project Management. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-3051","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>PMP\u00ae Formulas in Project Management - Project Management Academy Resources<\/title>\n<meta name=\"description\" content=\"PMP formulas are an integral part of the PMP certification exam. There are a mixture of math based questions that can appear on the PMP exam, so it&#039;s important to understand these formulas before taking the exam.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/projectmanagementacademy.net\/resources\/pmp-formulas-on-the-exam\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PMP\u00ae Formulas in Project Management - Project Management Academy Resources\" \/>\n<meta property=\"og:description\" content=\"PMP formulas are an integral part of the PMP certification exam. 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