Cfa Approved Calculators

CFA Approved Calculator Selector

Select the features you need to find which of the CFA approved calculators is right for you. The CFA Institute only permits two models: the Texas Instruments BA II Plus (and Professional) and the Hewlett Packard 12C (and its variants).

Comparison of CFA Approved Calculators

Feature Comparison of TI BA II Plus and HP 12C

Feature	Texas Instruments BA II Plus (and Pro)	Hewlett Packard 12C (and variants)
Input Method	Algebraic (standard calculator logic)	Reverse Polish Notation (RPN)
Popularity	Very high among CFA candidates; often recommended for beginners.	A classic among finance professionals; faster for experienced RPN users.
Key Functions	TVM, NPV, IRR, Amortization, Depreciation, Bonds, Statistics.	TVM, NPV, IRR, Amortization, Depreciation, Bonds, Statistics.
Advanced Functions (Pro Model)	NFV, Modified IRR, Payback, Discounted Payback.	Fewer built-in advanced functions, but programmable.
Display	1-line (Standard), 2-line (Pro)	1-line display
Ease of Use	Considered easier to learn.	Steeper learning curve due to RPN.

What are CFA Approved Calculators?

CFA approved calculators are the only two models of financial calculator authorized by the CFA Institute for use during the Chartered Financial Analyst (CFA) exams. The CFA Institute implements a strict calculator policy to ensure fairness and a level playing field for all candidates. By limiting the models, they prevent the use of devices with text-storage, internet, or programming capabilities that could provide an unfair advantage. As of the latest policy, the only CFA approved calculators are the Texas Instruments BA II Plus (including the BA II Plus Professional version) and the Hewlett Packard 12C (including the HP 12C Platinum, 25th anniversary, 30th anniversary, and Prestige editions). Understanding your chosen device is a critical component of exam strategy.

This policy on CFA approved calculators means that candidates cannot bring any other type of calculator, no matter how basic or advanced. Mastery of one of these two specific models is not just recommended; it’s essential for efficient time management and accuracy on exam day. These calculators have functions that are crucial for solving problems in Quantitative Methods, Fixed Income, Equity, and Corporate Issuers.

CFA Calculator Policy and Key Functions

There isn’t a single “formula” for CFA approved calculators, but rather a policy governing their use. The critical aspect is understanding the core financial functions these calculators perform, which are based on fundamental financial mathematics. These functions automate complex calculations, saving valuable time during the exam.

Below is a table of the key variables and functions you must master on your CFA approved calculator:

Key Financial Functions and Variables

Variable / Function	Meaning	Calculator Keys (Typical)	Typical Use Case
N	Number of compounding periods	N	Loan duration, investment horizon
I/Y	Interest rate per period	I/Y	Yield to maturity, discount rate
PV	Present Value	PV	Valuation of bonds, stocks, projects
PMT	Payment per period (for annuities)	PMT	Mortgage payments, coupon payments
FV	Future Value	FV	Retirement savings, future asset value
NPV	Net Present Value	NPV	Capital budgeting, project evaluation
IRR	Internal Rate of Return	IRR	Determining project profitability

The mastery of these functions on the CFA approved calculators is paramount. For example, the Time Value of Money (TVM) keys (N, I/Y, PV, PMT, FV) are fundamental for almost every topic area in the CFA curriculum.

Practical Examples (Real-World Use Cases)

Example 1: Bond Valuation

An analyst needs to find the present value (price) of a bond. The bond has a face value of $1,000, a 6% coupon rate paid semi-annually, 10 years to maturity, and the market yield is 5%.

• Inputs on a BA II Plus:
• N = 20 (10 years x 2 payments/year)
• I/Y = 2.5 (5% yield / 2)
• PMT = 30 ($1,000 * 6% / 2)
• FV = 1000
• Output: Compute PV = -$1,077.95. The negative sign indicates a cash outflow to purchase the bond. The price of the bond is $1,077.95. This demonstrates a core competency tested with CFA approved calculators.

Example 2: Capital Budgeting Decision

A company is considering a project with an initial investment of $500,000. It is expected to generate cash flows of $150,000, $200,000, and $250,000 over the next three years. The company’s discount rate is 10%.

• Inputs using Cash Flow worksheet (CF):
• CF0 = -500,000
• C01 = 150,000, F01 = 1
• C02 = 200,000, F02 = 1
• C03 = 250,000, F03 = 1
• Enter I = 10 in the NPV screen
• Output: Compute NPV = -$19,233.66. Since the NPV is negative, the company should reject the project. This analysis is a standard task for all CFA approved calculators.

How to Use This CFA Approved Calculators Selector

Our calculator at the top of this page is designed to help you choose between the two models of CFA approved calculators. Here’s how to use it:

1. Select Input Style: Choose ‘Algebraic’ if you prefer standard calculator logic (like the TI BA II Plus) or ‘RPN’ if you are familiar with or want to learn the efficient Reverse Polish Notation (used by the HP 12C).
2. Select Key Functions: Check the boxes for the financial functions that are most important to you. All CFA approved calculators handle the basics, but some advanced functions are unique to certain models (like MIRR on the BA II Plus Professional).
3. Review the Results: The tool will instantly show you which of the CFA approved calculators meet all your selected criteria.
4. Make Your Decision: Use the results, along with our comparison table and article, to decide which calculator is the best fit for your study plan. The best choice is always the one you will practice with the most.

Key Factors That Affect Your Choice of CFA Approved Calculators

Choosing the right device from the list of CFA approved calculators is a significant decision. Here are six factors to consider:

• 1. Input Method (Algebraic vs. RPN): This is the most significant difference. The TI BA II Plus uses the algebraic method, which is intuitive for most people. The HP 12C uses RPN, which can be much faster once mastered but requires learning a new system.
• 2. Familiarity and Learning Curve: If you are new to financial calculators, the BA II Plus is generally recommended due to its lower learning curve. If you already have a background in finance or engineering, you might be comfortable with the HP 12C’s RPN.
• 3. Cost: Generally, the standard TI BA II Plus is more affordable than the HP 12C models. For many candidates, this makes it the default choice among CFA approved calculators.
• 4. Keystroke Efficiency: For complex, multi-step problems, experienced RPN users often find the HP 12C requires fewer keystrokes than the BA II Plus, which can save precious seconds during the exam.
• 5. Build Quality and Durability: The HP 12C series, particularly the Platinum versions, is known for its robust build quality and professional feel. The BA II Plus Professional also offers a better build than the standard plastic model.
• 6. Specific Functions: While both models cover the core CFA curriculum needs, the BA II Plus Professional includes built-in functions for Modified IRR (MIRR) and Net Future Value (NFV), which can be useful. The HP 12C is programmable, offering more flexibility for users who invest the time to learn it.

Frequently Asked Questions (FAQ) about CFA Approved Calculators

1. Can I bring two calculators to the CFA exam?

Yes, you are allowed to bring a second calculator as a backup. However, both must be models from the list of CFA approved calculators. Bringing a backup is highly recommended in case of a battery failure or malfunction. Learn more about exam day policies in our CFA study materials.

2. What happens if my calculator’s batteries die during the exam?

The test proctors will not provide batteries. You are responsible for your own equipment. You are allowed to bring loose replacement batteries and a small screwdriver to change them. To avoid this, it’s best to install fresh batteries a few days before the exam. A great resource is our Financial Calculator Guide.

3. Do I have to clear my calculator’s memory before the exam?

Yes, proctors will check your calculator and may ask you to demonstrate that the memory has been cleared. It’s a standard procedure for all CFA approved calculators to ensure no notes or formulas are stored.

4. Is the TI BA II Plus Professional version better than the standard one?

The Professional version has a better build quality, a slightly improved display, and includes a few extra functions like NFV and MIRR. While not essential, many candidates find the upgrade worth the small additional cost.

5. Which calculator is more popular among candidates?

The Texas Instruments BA II Plus is by far the more popular choice among CFA candidates, primarily because its algebraic entry method is easier to learn. Most third-party prep materials use the BA II Plus for their demonstrations.

6. Can I use a calculator app on my phone or tablet?

No. The use of mobile phones, tablets, or any electronic device other than the two authorized models of CFA approved calculators is strictly prohibited during the exam.

7. Are calculator instruction manuals allowed in the testing room?

No, instruction manuals are not permitted. However, you are allowed to have the calculator’s cover and any original keystroke cards that came with it. Check out our guide to passing Level 1 for more tips.

8. Why does the CFA Institute have such a strict policy on CFA approved calculators?

The policy ensures fairness, uniformity, and security. By standardizing the tools, the institute prevents any candidate from having a technological advantage and minimizes the risk of cheating through stored information.

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