Tools & Templates

Three-Point Estimation Calculator – Triangular & PERT Beta Distribution

Three-Point estimating is a common estimation technique in projects that are applying the PMI methodology. While other estimation techniques are often deemed to be more accurate, three-point estimating supplemented with the triangular or beta (PERT) distribution is useful if the experience with or benchmarks of comparable projects are not available. Use this calculator to determine …

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Internal Rate of Return (IRR) vs. ROI – What Are the Differences?

If you are working on a cost-benefit analysis, you will almost inevitably come across ROI and IRR. Return on Investment (ROI) and Internal Rate of Return (IRR) are among the most popular success measures for projects and investments. They are also mentioned in the Project Management Institute’s Body of Knowledge (source: PMBOK, 6th edition, part …

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ROI Title

Return on Investment (Single & Multi-Period ROI): Formulae, Examples, Calculator

Return on Investment is one of the most common indicators used for the cost-benefit analysis. This is probably because of its simplicity and understandability of the information conveyed. In Project Management, it is a success measure suggested by the Project Management Institute (PMI; source: PMBOK, 6th edition, part 1, ch. 1.2.6.4, p. 34). However, the …

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Payback Period Calculator – PbP for Even & Uneven Cash Flows

Do you need to calculate the number of periods an investment requires to reach the break-even point? The Payback Period (PbP or PBP) indicates the period in which a full repayment or amortization of an investment is achieved. This indicator is used not only for the assessment of project options and business cases in project …

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Net Present Value Title Pic

What Is the Net Present Value (NPV) & How Is It Calculated?

When you perform a cost-benefit analysis and need to compare different investment alternatives with each other, you might consider using the net present value (NPV) as one of the profitability indicators. In project management, the NPV is commonly used and also listed in PMI’s Project Management Body of Knowledge (source: PMBOK, 6th edition, part 1, …

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To-complete-performance index

What Is the To-Complete-Performance-Index (TCPI)? Definition, Formula & Calculator.

When you are in the process of project cost controlling – either in a real-life situation or during your PMP exam preparation – you will probably wonder what exactly the to-complete-performance index is and how you can use this indicator. In this article, we will introduce the TCPI, its definition and formula. You can also …

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Project members in a conference room

Number of Communication Channels (+ PMP Formula & Calculator)

The PMI methodology, set out in the Project Management Body of Knowledge, introduces the number of potential communication channels as a part of the communication requirements analysis. This type of analysis is a tool and technique of the “Plan Communications Management” process (ch. 10.1.2 in the PMBOK, 6th edition). The goal of this analysis is …

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