CIMA BA1 Formula Sheet
The key formulas for CIMA BA1 (Business Economics) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
BA1 Formula Sheet · PDF · 1 page · A4 · print-ready
Download the BA1 formula sheetUpdated 25 September 2026: the Σ symbols in the Laspeyres price index now print correctly, and the sheet has been re-typeset with proper maths symbols. If you printed an earlier copy, please download it again.
The formulas on the BA1 sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Simple & Compound Interest
- Simple interest: I = P × r × n
- Compound interest: FV = P × (1 + r)n
- P = principal, r = interest rate per period, n = number of periods
Annuities & Perpetuities
- PV of annuity = A × [1 − (1 + r)−n] ÷ r
- PV of perpetuity = A ÷ r
- A = periodic cash flow, r = interest rate per period
Growing Perpetuity
- PV = A ÷ (r − g)
- g = constant growth rate per period (only valid where r > g)
Effective & Nominal Interest Rates
- Effective annual rate = (1 + r/m)m − 1
- r = nominal annual rate, m = compounding periods per year
Index Numbers
- Price relative = (Current price ÷ Base price) × 100
- Laspeyres price index = Σ(P1 × Q0) ÷ Σ(P0 × Q0) × 100
- Laspeyres weights by BASE year quantities (Q0)
Price Elasticity of Demand (PED)
- PED = %change in quantity demanded ÷ %change in price
- |PED| > 1 = elastic; |PED| < 1 = inelastic; = 1 unit elastic
Income Elasticity of Demand (YED)
- YED = %change in quantity demanded ÷ %change in income
- YED > 0 = normal good; YED < 0 = inferior good
Cross Elasticity of Demand (XED)
- XED = %change in Qd of good A ÷ %change in price of good B
- XED > 0 = substitutes; XED < 0 = complements
Linear Regression (Forecasting)
- Line of best fit: y = a + bx
- a and b values are provided or derived from data given in the question
Correlation & Determination
- Correlation coefficient r: −1 ≤ r ≤ 1
- Coefficient of determination = r2
- r2 shows the proportion of variation in y explained by x
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through BA1 questions. Once you stop reaching for it, you know the formulas are in place.
Test yourself on BA1 with 150 free practice questions, worked explanations for every answer, and a timed mock exam mode. Start BA1 practice →
This sheet is an original compilation of standard formulas mapped to CIMA BA1's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all CIMA formula sheets. GoQualified is not affiliated with CIMA.