Crunching Numbers with Confidence: A Friendly Guide to CFP® Calculators

The CFP^® Exam does test your knowledge of financial formulas and calculations, so you’ll need to know things like how to determine the internal rate of return (IRR), unequal periodic cash flows, and amortization schedules. But while you need to understand the formulas and how to calculate them, you can use a financial calculator to do the heavy lifting. CFP Board is tough, but they aren’t monsters.

Before you get too excited about the prospect of a CFP calculator, there are some CFP Board rules you need to follow plus some best practices that will prevent a calculator-related horror story (Yes, they exist—we’ve heard them.). We’re here to share everything you need to know.

Listen up: Jerry is providing more information on financial calculators in this episode of BIF Bites!

Approved CFP Exam Calculators

First, CFP Board only permits you to use specific financial calculators on the CFP^® Exam.

This does include newer and older versions of the calculators, as well as the variations like plus, pro, or platinum, as seen above. 

See it in action: Check out the video below to get a quick tutorial on how to use the HP 12C financial calculator.

Basic Calculators on the CFP^® Exam

The computer you use at the Prometric testing center will have a basic calculator app built in for completing math, but you are allowed to bring in your own simple calculator, too. It just can’t be a graphic calculator or anything like that.

Checking in with Your CFP^® Exam Calculator

On top of what type of CFP^® Exam calculator you’re using, CFP Board also has rules governing usage.

• All calculators must be battery-operated.
• You need to clear your memory of any saved formulas or information.
• Remove or cover any notes or formulas on the back of your calculator with something opaque, like masking or duct tape.

Once you’re at the Prometric center, the exam proctors will inspect your calculator before you sit for the exam. They may ask you to pop the batteries out of the back of your calculator to reset it to factory settings, so technically, you may not need to clear your memory, but it’s just a good practice to speed up the check-in process.

Tips and Best Practices for Your CFP Calculator

Remember how you don’t want to be a calculator cautionary tale? Here’s how to avoid that.

Bring Extra Batteries

CFP Board does allow you to bring batteries into the exam room, so make sure you pack extras because the last thing you want is for your calculator to die halfway through the exam. Just make sure to take them out of the packaging before you go into the exam room. Better still, borrow an extra calculator from a friend or co-worker. This way if something does happen, like you drop your calculator into a puddle on the way into the testing center (Yes, this actually happened!), you won’t feel compelled to drop to your knees in the parking lot, screaming “I am fortune’s fool!” or something equally, tragically Shakespearean.

Write Down Calculations at Each Step

Many calculations on the CFP Exam involve multiple steps, like calculating mortgage amortization or conducting a retirement funding 3-step calculation. Write down your answers at each stage on your scratch paper—case study questions love to ask you to reference earlier results. Recording each step saves time and prevents you from redoing work if you need to backtrack.

Practice with Your Chosen Calculator

Don’t switch out your calculators mid-way through your exam prep and definitely don’t try a new CFP calculator on exam day. Choose one approved model as you start preparing for the CFP® Exam and get to know it so you can devote all your concentration to doing the work correctly.

Which CFP Calculator is the “Best?”

There’s not really a “best” calculator, but here are our TOP 3 along with some considerations to help guide your selection:

• HP 10bII+: This is user-friendly with a short learning curve, so this is a good option if you’re new to using a financial calculator.
• HP 12C: This option uses RPN (Reverse Polish Notation) which some users find faster, and it’s more widely used by experienced professionals. However, this one is not as easy to use or intuitive, so the learning curve is longer.
• TI BaII Plus: Like the HP 10b, this option is easy to learn and popular with beginners.

Pro tip: BIF provides detailed instruction and full support for both HP 10bii and HP 12C users

Try The BIF Review FREE for 30 Days

If you’re preparing for the CFP® Exam, The BIF Review teaches you exactly what you need to know in a concise, streamlined prep course (including using a financial calculator for the CFP® Exam). Try it free for 30 days and see how we get you exam ready!