Important Formulas for the Exam

You will have to understand and if possible memorize the following formulas for the EXAM-


EV = %Complete*BAC

AC = %Spent*BAC

CV = EV–AC (>0 Good)

SV = EV–PV (>0 Good)

CPI = EV/AC (>1 Good)

SPI = EV/PV (>1 Good)

EAC = AC+Bottom up ETC – Best however team has to stop working and spend time

EAC = AC+BAC–EV – Remaining work to be performed at budgeted rate

EAC = BAC/Cumulative CPI – Remaining work to be performed at present CPI

EAC = AC+(BAC–EV)/(Cumulative CPI*Cumulative SPI) – Remaining work to be performed at present rate involving both SPI and CPI

ETC = EAC–AC or Re-estimate

VAC = BAC–EAC

TCPI = (BAC-EV)/(BAC-AC ) or (EAC–AC) – EAC will be used once it is determined BAC is no longer achievable, less then 1 is good

PV = FV/(1+r)ⁿ

Communication Channels = n(n-1)/2

EMV = P*I

PERT EAD = (O+4M+P)/6

PERT Project Duration = Sum of PERT EADs

SD = (P-O)/6

Variance of Activity =  [SD]² = [(P-O)/6]²

SD of Project = Square Root of Var1 + var2 + ……

Range of activity duration = EAD +/- SD

Total Float/Slack = LS-ES or LF-EF – zero on critical path

BCR/IRR/NPV – Bigger is better

Mean – Average

Median – Center number/value or average of center values

Mode – The most frequent number

Contract Incentives Savings = Target Cost – Actual Cost

Bonus = Savings x Percentage

Contract Cost = Bonus + Fees

Total Cost = Actual Cost + Contract Cost

PTA = (Ceiling Price – Target Price)/Buyer’s Share ratio +Target Cost


Terms Used
Planned Value (PV)
Actual Cost (AC)
Earned Value (EV)
Budget At Completion (BAC)
Cost Variance (CV)
Schedule Variance (SV)
Cost Performance Index (CPI)
Schedule Performance Index (SPI)
Estimate at Completion (EAC)
Estimate to Complete (ETC)
Variance At Completion (VAC)
Probability (P)
Impact (I)
Expected Monetary Value (EMV)
Expected Activity Duration (EAD)
Standard Deviation (SD)
Late Start, Early Start, Late Finish, Early Finish (LS, ES, LF, EF)
Point of Total Assumption (PTA)
To Complete Performance Index [TCPI]