CFA Level 1 Formula Sheet (2026)
Complete, topic-wise formula reference for the CFA Level I exam (2026 curriculum). Every key formula from the curriculum, organised by topic.
Complete, topic-wise formula reference for the CFA Level I exam (2026 curriculum). Every key formula from the curriculum, organised by topic.
Alternative Investments formulas cover real estate valuation (cap rate, NOI), private equity (DPI, RVPI, TVPI), hedge fund fee structures, and commodity index returns.
Corporate Issuers formulas include WACC, cost of equity (CAPM and DDM approaches), operating and financial leverage, and breakeven analysis.
Derivatives formulas include put-call parity, binomial option pricing, Black-Scholes-Merton inputs, and forward/futures pricing relationships.
Economics formulas span micro and macroeconomics, including supply-demand analysis, GDP calculations, exchange rate parity conditions, and monetary/fiscal policy models.
Equity valuation formulas cover the Dividend Discount Model (DDM), Free Cash Flow models, and relative valuation multiples like P/E, P/B, and EV/EBITDA.
Financial Statement Analysis (FSA) carries one of the highest topic weights. Key formulas include profitability, liquidity, solvency, and activity ratios, plus LIFO-FIFO adjustments and DuPont decomposition.
Fixed Income formulas address bond pricing, yield measures (YTM, current yield, spread), duration, convexity, and term-structure models essential for the CFA exam.
Portfolio Management formulas encompass the Capital Asset Pricing Model (CAPM), Sharpe ratio, Treynor ratio, Jensen's alpha, and mean-variance optimisation.
Quantitative Methods covers time value of money (TVM), descriptive statistics, probability distributions, hypothesis testing, and linear regression — foundational formulas used throughout the CFA curriculum.