CFA Level I Formula Sheet
Last updated: April 17, 2026
This formula sheet is built for first-pass CFA Level I review. It is not a substitute for the official curriculum. Use it as a quick checkpoint after reading a topic guide, then test the formula with questions until the idea feels natural.
How to study formulas
- Write the formula once without looking.
- Label every input in plain English.
- Solve one small example by hand or calculator.
- Explain what would make the answer higher or lower.
- Save missed formulas in an error log and review them two days later.
Calculator and setup habits
- Match rate frequency to period frequency (annual vs monthly vs semiannual).
- Use a timeline for TVM questions so direction (PV vs FV) is clear.
- Check sign conventions: outflows and inflows should have opposite signs.
- Estimate the answer range before calculating so you can catch obvious errors.
Time value of money
Future value
FV = PV x (1 + r)^n
Use when money grows forward through compounding.
Present value
PV = FV / (1 + r)^n
Use when a future cash flow must be brought back to today.
Holding period return
HPR = (Ending value - Beginning value + Income) / Beginning value
Include dividends, coupons, or other income when the question gives it.
Portfolio and statistics basics
Expected return
E(R) = Sum of probability x return
Multiply each possible return by its probability before adding.
Weighted portfolio return
Rp = Sum of weight x asset return
Weights should add to 100 percent or 1.0.
Risk premium
Risk premium = Expected return - Risk-free rate
Shows the extra return expected for taking risk.
Financial statement analysis
Current ratio
Current assets / Current liabilities
A liquidity measure, not proof that a business is healthy.
Debt-to-equity
Total debt / Total equity
Higher leverage can increase both risk and return.
Return on equity
Net income / Average equity
Connect ROE with profitability, leverage, and asset use.
Equity and fixed income
Dividend discount model
Value = D1 / (r - g)
Only works when the growth assumption is stable and below the required return.
Price-to-earnings ratio
P/E = Price per share / Earnings per share
A high P/E can mean growth expectations, overpricing, or both.
Current yield
Annual coupon / Bond price
This is not the same as yield to maturity because it ignores capital gain or loss.
Common formula mistakes
- Using annual rates with monthly periods without converting the rate or period.
- Forgetting income in a holding period return question.
- Reading a ratio as "good" or "bad" without comparing it to context.
- Memorizing a formula but not knowing when the assumptions break.
Related CFA guides
FAQ
Do I need to memorize every formula?
Focus on high-frequency formulas and the setup behind them. A formula you can set up correctly under time pressure is more valuable than a formula you only recognize on paper.
How often should I review formulas?
Short reviews work best. Try 10 minutes daily or 20 minutes every other day. Repetition builds recall faster than long, rare cramming sessions.
Independence note: FinnQuiz is not affiliated with CFA Institute. CFA Institute does not endorse, promote, or warrant FinnQuiz. CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.