CFA Formulas You Need to Know for Exam Success

Let’s face it!

The CFA exam is daunting. But there’s a silver lining—the CFA formula sheet. Think of it as your exam cheat code, but don’t let that fool you. Knowing how to use it properly can make all the difference. Here’s your guide to mastering it.

What Is the CFA Formula Sheet and Why Does It Matter?

You’ve heard of it.

The CFA Level 1 formula sheet is like a safety net. But it’s not just handed to you for fun. It’s a tool that, when used right, can be a game-changer. So, does the CFA exam provide a formula sheet? Yes, it does. But don’t think you can just rely on it blindly. CFA Level 1 formulas are there to guide you, but it’s your knowledge and preparation that will truly get you through.

Key Formulas to Know for CFA Level 1

Alright, let’s get into the nitty-gritty.

The CFA Level 1 formula sheet 2024 is packed with critical formulas. But how do you use them? First, you need to understand what each formula does. It’s not just about rote memorization—application is key. Let’s take a look at some of the heavy-hitters.

1. Time Value of Money (TVM) Formula

The Time Value of Money formula is one you’ll see again and again. It’s the foundation for much of your financial calculations in CFA Level 1.

$$FV = PV \times (1 + r)^n$$

Where:

• \(FV\) = Future Value
• \(PV\) = Present Value
• \(r\)= Interest rate per period
• \(n\) = Number of periods

This formula is a must-know.

The CFA Level 1 quantitative methods formula sheet will give it to you, but you need to understand how to apply it to solve problems efficiently.

2. Net Present Value (NPV)

When you’re valuing investments, you’ll often use the Net Present Value (NPV) formula. This one’s critical for analyzing cash flows over time, and you’ll see it in your CFA Level 1 syllabus PDF.

$$NPV = \sum_{t=0}^T {\frac{CF_t}{(1 + r)^t} }$$

Where:

• \(CF_t\) = After-tax cash flow at time \(t\).
• \(r\) = Required rate of return.
• \(t\) = Time period

It’s important to grasp how to use CFA Level 1 formulas like this one to answer real-world investment questions.

3. Holding Period Return (HPR)

Want to know how well your investment is performing? The Holding Period Return formula will help you out.

$$HPR = \frac{P_1 – P_0 + I}{P_0}$$

Where:

• \(P_1\) = Ending price of the asset
• \(P_0\)​ = Beginning price of the asset
• \(I\) = Income received (for example dividends)

This formula is crucial for gauging investment performance over time. It’s one you’ll want to have solidified in your mind before exam day.

CFA Level 1 vs Level 2: What’s the Difference?

The formula sheets change with each level of the CFA exam. Let’s talk about how the CFA Level 1 vs Level 2 formula sheets differ. CFA Level 1 is relatively straightforward, but CFA Level 2 formulas dive deeper into concepts, often requiring more complex application. Understanding this distinction is crucial for your preparation.

For example, at Level 1, you’ll focus on simpler calculations. By Level 2, those formulas will need to be applied in more nuanced, real-world scenarios. Get comfortable with the CFA Level 1 equation sheet, and you’ll have a better foundation for the tougher formulas ahead.

How Many Hours Should You Spend Studying for CFA Level 1?

How much time do you need to prep for the CFA Level 1 exam?

The magic number often tossed around is 300 hours, but don’t just follow the crowd. How many hours you spend really depends on your strengths and weaknesses.

CFA Level 1 practice questions PDF and the CFA Level 1 mock exam PDF are great tools to measure your progress. Keep in mind, though, that it’s not about the quantity of hours, but the quality of your study time. You can’t afford to just memorize formulas; understanding their applications is what will make a real difference.

Master the CFA Formula Sheet with Tools

Want to supercharge your preparation?

Use tools like Mark Meldrum CFA Level 1 formula sheet to keep key concepts fresh. Flashcards can be a lifesaver—grab CFA Level 1 formula flashcards to test your recall. But don’t rely only on memorization. Apply the formulas in practice problems to get comfortable with their use.

How Many Formulas Are in CFA Level 1?

Curious about just how many formulas you need to know for CFA Level 1?

The number can vary, but it’s around 50+ formulas you’ll need to memorize. Don’t worry though, with the CFA Level 1 formula cheat sheet, it’ll be easier to keep track.

The CFA Level 1 syllabus PDF outlines which formulas are most important. Focus on understanding them, rather than just trying to remember them. The more familiar you are with their applications, the better you’ll do on the exam.

Getting Creative with Your CFA Formula Sheet

Looking for a creative way to study?

You can make your own CFA Level 1 breakdown. Pick a formula from the CFA Level 1 formula sheet 2024 PDF each day, and create real-life scenarios where you’d use it. This strategy helps reinforce your understanding and makes it easier to remember on exam day.

If you’re struggling with any of the formulas, check out online communities like CFA Level 1 Reddit. There’s a treasure trove of tips and tricks shared by candidates who’ve been in your shoes. Even Blooket cheat codes are popping up—anything to make learning a bit more fun.

Does the CFA Level 1 Exam Formula Sheet Have Everything?

It’s a common question: Does the CFA Level 1 exam formula sheet have everything you need?

The short answer is no. While the formula sheet for CFA Level 1 is comprehensive, you still need to be prepared for the exam. Make sure to go over your CFA Level 1 syllabus PDF, and focus on mastering the formulas that won’t be on the sheet.

The goal isn’t just to memorize the CFA Level 1 formula sheet PDF—it’s to understand the underlying concepts. This deeper understanding is what will make the difference on exam day.

Final Thoughts: Own Your CFA Formula Sheet

You’ve got all the tools now—CFA Level 1 formulas, formula flashcards, and the CFA Level 1 formula sheet 2024. Use them wisely. Mastering the formulas is crucial, but knowing when and how to use them will make the most significant impact on your CFA Level 1 results.

Take your time, study strategically, and remember: the CFA Level 1 equation sheet is there to guide you, not carry you. The more you practice, the more confident you’ll become.

And when exam day rolls around, you’ll be ready to ace it—armed with a rock-solid understanding of every formula you need to know.

Frequently Asked Questions about the CFA Level 1 Exam

How do I prepare for the CFA Level 1 exam?

Start early. Break down the material into manageable chunks. Focus on key areas: Ethics, Quantitative Methods, and Financial Reporting. Study a little every day. Use CFA Level 1 mock exams to get used to the exam format. And, don’t forget the CFA Level 1 formula sheet—it’s your best friend during the exam. Practice. Stay consistent. It’s a marathon, not a sprint.

Do you need a CFA formula sheet for the CFA Level 1?

Yes, you do. But it’s not a crutch. The CFA Institute provides a formula sheet during the exam. But you must memorize the essentials. Focus on formulas like time value of money and financial ratios. Practice them until they’re second nature. The sheet is just for reference, not your primary tool.

What is the CFA Level 1 revision guide?

A revision guide is your cheat code for the final stretch. It’s a condensed version of all the key concepts. It’ll help you focus on what matters most in those last few weeks. Think of it as a quick refresher, not a replacement for detailed study. Combine it with a CFA Level 1 formula sheet pdf and you’re all set.

Do I need a cheat sheet for the Level I CFA Program?

A cheat sheet can be helpful. But don’t rely on it too much. The CFA formula sheet during the exam is useful, but it won’t cover everything. Create your own cheat sheet to consolidate formulas. Think quick reference, not memorization. It’s all about the basics—master those, and you’ll do fine.

How many questions is CFA Level 2?

120 questions. Divided into two sessions. It’s not just about knowing the material—it’s about applying it. The CFA Level 2 formula sheet will help, but only if you understand the formulas. It’s tougher than Level 1, so practice is key. Mock exams are a must.

Do you get a formula sheet for CFA Level 1?

Yes, you do. The CFA Level 1 formula sheet is available during the exam. It covers key formulas like capital budgeting and fixed income. But don’t count on it for everything. Memorize the basics ahead of time. It’s your backup, not your primary resource.

What does CFA Level 1 cover?

It covers everything from Ethics to Financial Reporting. The exam is broad, but not deep. You’ll need a solid understanding of key areas like Quantitative Methods, Equity Investments, and Corporate Finance. Prioritize based on CFA Level 1 section weights. Focus on the most heavily tested topics.

How many formulas are in CFA Level 1?

There are around 30-40 core formulas. They’re key to your success. Think time value of money, holding period returns, and portfolio returns. Memorize them. Practice with CFA Level 1 flashcards to reinforce your memory. The more familiar you are with them, the easier the exam will be.

Does the CFA exam provide a formula sheet?

Yes, it does. But it’s not exhaustive. The CFA formula sheet includes key formulas for areas like Financial Reporting and Quantitative Methods. It’s there to help, not to be your primary study tool. Practice with formulas ahead of time to ensure you can apply them without relying on the sheet.

What is the CFA Level 1 formula sheet for 2024?

The CFA Level 1 formula sheet for 2024 is similar to previous years. It’ll cover essential formulas for topics like Fixed Income and Equity Investments. Don’t wait for the sheet on exam day—study the formulas ahead of time. The sheet is just a reference, not your crutch.

Can I use the CFA Level 1 formula sheet 2024 pdf to study?

Yes! The CFA Level 1 formula sheet pdf is great for familiarizing yourself with what will be on the exam. Use it as a reference, but don’t depend on it. Memorize the formulas before the exam. Focus on understanding how to apply them.

How can I use the CFA Level 1 formula cheat sheet effectively?

Create a CFA Level 1 formula cheat sheet with all the key formulas. Use it for quick reviews. But don’t just memorize the formulas—practice applying them. The cheat sheet should be a tool, not a crutch. Use it to solidify what you’ve already learned.

Related Reads for CFA Success

Looking to learn more? These resources will guide you through every step of your journey:

• Your Complete Guide to the 2025 CFA Level I Exam
  Learn everything you need to know about the Level I CFA exam, from exam structure to the most effective study strategies.
• The 2025 CFA Exam Rules for Refunds, Deferrals, and Exam Day
  Avoid last-minute surprises by understanding the CFA Institute’s policies on deferrals, refunds, and what to expect on exam day.
• CFA Candidate Resources: Your Key to Success
  Access a treasure trove of curated tools and tips designed to help you conquer the CFA exams.
• A Comprehensive Breakdown of the 2025 CFA Level 1 Exam
  Find detailed insights into the CFA Level 1 exam, including topic weights, study techniques, and exam-day tips.