CA Final Nov 2026 AFM formula sheet: 50 formulas by chapter
This CA Final AFM formula sheet for November 2026 has 50 formulas, chapter by chapter, each one in the form ICAI's own study material prints it, with the chapter PDF linked so you can check it. It covers every chapter with numericals (13 of the 15; Chapters 7 and 15 are theory), plus the RSI formula that ICAI's November 2026 RTP asks for. Below the tables: how ICAI interpolates N(d) and what the calculator rule means for e and ln.
AFM is on Wednesday, 4 November 2026 (timetable). A formula you can write from memory in 10 seconds is worth more in the hall than one you half-remember, so use this sheet daily until then.
Where these AFM formulas come from
ICAI's study material notice for November 2026 (PDF) (opens in a new tab) names the November 2024 edition (Reprint August 2025 and onwards) for Paper 2. Every formula below is taken from that edition's chapter PDFs on ICAI's BoS study material page (opens in a new tab). The one exception is RSI, which is in ICAI's RTP for November 2026, Group I (PDF) (opens in a new tab), Question 11, and not in the study material.
Notation follows ICAI: Rf is the risk-free rate, Ke the cost of equity, β beta, σ standard deviation, t time in years.
Financial policy, risk management and capital budgeting (Ch 1–3)
From Chapter 1 (PDF) (opens in a new tab), Chapter 2 (PDF) (opens in a new tab) and Chapter 3 (PDF) (opens in a new tab):
| # | Formula | What it gives |
|---|---|---|
| 1 | SGR = ROE × (1 − dividend payout ratio) | Sustainable growth rate |
| 2 | VaR = Z × σ (in ₹) | Maximum 1-day loss at a confidence level (Z = 2.33 at 99%) |
| 3 | n-day VaR = 1-day VaR × √n | ICAI's example: ₹9.32 lakh × √10 = ₹29.47 lakh |
| 4 | RADR = Rf + risk premium | Risk-adjusted discount rate |
| 5 | αt = certain cash flow ÷ risky cash flow; NPV = Σ αt × CFt ÷ (1 + Rf)^t | Certainty equivalent: discount at the risk-free rate, not the cost of capital |
The trap in row 5: the risk is already taken out by α, so ICAI says discounting at the cost of capital "will tantamount to double counting of risk".
CA Final AFM formulas for security analysis and valuation (Ch 4–5)
From Chapter 5 (PDF) (opens in a new tab), plus the RTP for row 6:
| # | Formula | What it gives |
|---|---|---|
| 6 | RSI = 100 − 100 ÷ (1 + RS); RS = average gain ÷ average loss (14 days) | Relative Strength Index (RTP Q11) |
| 7 | P0 = D ÷ Ke | Share value, zero growth |
| 8 | P0 = D1 ÷ (Ke − g) = D0(1 + g) ÷ (Ke − g) | Constant growth (Gordon) |
| 9 | g = b × r (retention × return on equity) | Growth rate |
| 10 | P0 = D0(1 + gn) ÷ (r − gn) + D0 × H × (gc − gn) ÷ (r − gn) | H-model; H = half the transition period |
| 11 | YTM ≈ [I + (F − P) ÷ n] ÷ [(F + P) ÷ 2] | Approximate yield to maturity |
| 12 | Macaulay duration = [Σ t × C ÷ (1 + i)^t + n × M ÷ (1 + i)^n] ÷ P | Duration in years |
| 13 | Modified duration = Macaulay duration ÷ (1 + YTM ÷ n) | n = compounding periods a year |
| 14 | FCFF = EBIT(1 − t) + depreciation ∓ capex ∓ change in non-cash NWC | Free cash flow to firm |
| 15 | FCFE = net income + depreciation − ΔNWC − capex + new debt − debt repaid + net preference issue − preference dividend | Free cash flow to equity |
The H-model formula is the one students search most. In May 2026 Q1(b), ICAI derived gn = 12% × 50% = 6% using row 9 and used H = 5 ÷ 2 = 2.5; the full working is in our CA Final AFM important questions.
RSI is new territory. ICAI's RTP answer computes a 14-day RSI of 34.64 and reads it with these bands: above 70 overbought, 50–70 bullish, 30–50 bearish, below 30 oversold. After the first 14 days, each average rolls forward as (previous average × 13 + the day's gain or loss) ÷ 14, as ICAI's answer table shows. Chapter 4 itself has only a paragraph on relative strength analysis, so learn this from the RTP.
Portfolio management formulas (Ch 6)
From Chapter 6 (PDF) (opens in a new tab), the longest list on the sheet:
| # | Formula | What it gives |
|---|---|---|
| 16 | E(R) = Rf + β(Rm − Rf) | CAPM expected return |
| 17 | βp = Σ weight × β | Portfolio beta |
| 18 | β = σi × r(i,m) ÷ σm | Beta from correlation |
| 19 | rAB = CovAB ÷ (σA × σB) | Correlation |
| 20 | σp² = x1²σ1² + x2²σ2² + 2x1x2 r12 σ1σ2 | Two-security portfolio variance |
| 21 | Total risk = β²σm² + σ²ei | Single index model: systematic + unsystematic |
| 22 | Sharpe ratio = (Ri − Rf) ÷ σi | Return per unit of total risk |
| 23 | Treynor ratio = (Ri − Rf) ÷ βi | Return per unit of systematic risk |
| 24 | Alpha = actual return − CAPM expected return | Jensen's alpha |
| 25 | E(Ri) = Rf + λ1β1 + λ2β2 + … + λnβn | Arbitrage pricing theory |
| 26 | Ci = σm² Σ[(Ri − Rf)βi ÷ σ²ei] ÷ [1 + σm² Σ(βi² ÷ σ²ei)] | Sharpe's optimal portfolio; rank first by (Ri − Rf) ÷ βi, cut-off C* = highest Ci |
| 27 | Zi = (βi ÷ σ²ei) × [(Ri − Rf) ÷ βi − C*]; weight = Zi ÷ ΣZi | Weights in the optimal portfolio |
The trap in row 21: unsystematic risk can also be found as total variance × (1 − r²), and ICAI uses both. Read whether the question gives you σ or σ² for the residual before you square anything.
Mutual fund formulas (Ch 8)
From Chapter 8 (PDF) (opens in a new tab):
| # | Formula | What it gives |
|---|---|---|
| 28 | NAV = net assets of the scheme ÷ units outstanding | Net asset value per unit |
| 29 | Return = [(NAV1 − NAV0) + D1 + CG1] ÷ NAV0 | Holding-period return with dividend and capital gain |
| 30 | r2 = r1 ÷ (1 − initial expenses) + recurring expenses | Return the fund must earn to give the investor r1 |
| 31 | TE = √[Σ(d − d̄)² ÷ (n − 1)] | Tracking error; d = differential return against the benchmark |
Derivatives formulas, including Black-Scholes (Ch 9)
From Chapter 9 (PDF) (opens in a new tab):
| # | Formula | What it gives |
|---|---|---|
| 32 | A = P × e^rt | Forward or futures price, continuous compounding |
| 33 | A = (P − I) × e^rt | Same, with I = present value of income (dividend) |
| 34 | Contracts = value of position × β ÷ value of one futures contract | Full hedge with index futures (contract = futures price × lot) |
| 35 | Contracts = P(βp − β′p) ÷ F | Contracts to move portfolio beta to a target |
| 36 | (Su − S0)p + (Sd − S0)(1 − p) = S0(e^rt − 1) | Risk-neutral probability p |
| 37 | d1 = [ln(S ÷ X) + (r + σ² ÷ 2)t] ÷ σ√t; d2 = d1 − σ√t | Black-Scholes inputs |
| 38 | Call = S × N(d1) − X × e^−rt × N(d2) | Black-Scholes call value; N(d1) is the hedge ratio (delta) |
| 39 | Put = −S + Call + PV(X) | Put-call parity, as ICAI writes it |
The trap in row 37: the + σ²/2 becomes − σ²/2 if you work d2 directly. ICAI's Chapter 9 illustration does exactly that and gets the same d2 = d1 − σ√t.
Forex and international finance formulas (Ch 10–11)
From Chapter 10 (PDF) (opens in a new tab) and Chapter 11 (PDF) (opens in a new tab):
| # | Formula | What it gives |
|---|---|---|
| 40 | (1 + rD) = (F ÷ S) × (1 + rF) | Covered interest rate parity |
| 41 | E(S1) = S0 × (1 + Id) ÷ (1 + If) | Relative purchasing power parity |
| 42 | Premium or discount % p.a. = [(F − S) ÷ S] × (12 ÷ months) | Annualised forward premium |
| 43 | APV = −I0 + Σ Xt ÷ (1 + k*)^t + Σ Tt ÷ (1 + id)^t + Σ St ÷ (1 + id)^t | Adjusted present value; k* = unlevered cost of capital, T = tax shield, S = interest subsidy |
Two forex rules sit beside these formulas, and they cost more marks than any formula:
- Swap points: a quote like 5/8, rising left to right, means the foreign currency is at a premium, so add; falling means discount, so deduct (Chapter 10).
- Which side of the quote: the bank buys foreign currency at its bid and sells at its ask, so you pay the ask when you buy dollars.
Interest rate, valuation and merger formulas (Ch 12–14)
From Chapter 12 (PDF) (opens in a new tab), Chapter 13 (PDF) (opens in a new tab) and Chapter 14 (PDF) (opens in a new tab):
| # | Formula | What it gives |
|---|---|---|
| 44 | FRA settlement = N × (RR − FR) × (dtm ÷ DY) ÷ [1 + RR × (dtm ÷ DY)] | FRA settlement; the seller pays the buyer if RR is above FR |
| 45 | Cap payoff = N × max(0, r − rc) × (days ÷ days in year) | Paid to a cap buyer (a borrower) |
| 46 | Floor payoff = N × max(0, rf − r) × (days ÷ days in year) | Paid to a floor buyer (a lender) |
| 47 | EVA = NOPAT − (invested capital × WACC) | Economic value added |
| 48 | Synergy = VAB − (VA + VB) | Gain from merger |
| 49 | Exchange ratio = price offered per target share ÷ acquirer's value per share | ICAI's example: ₹230 ÷ ₹200 = 1.15 shares |
| 50 | Post-merger EPS = combined earnings ÷ (acquirer's shares + new shares issued) | EPS after a share exchange |
Chapters 7 (securitisation) and 15 (startup finance) are theory chapters. ICAI's RTP leaves both out of its list of areas "from which numerical questions are normally asked", so they need notes, not formulas.
Interpolation in AFM: how ICAI reads N(d)
The normal table moves in steps of 0.01, and d1 or d2 rarely lands on a row. ICAI interpolates between the two rows. Here is May 2026 Q6(b), from ICAI's suggested answers (PDF) (opens in a new tab), where d2 = 0.4264:
| Step | Working | Figure |
|---|---|---|
| N(0.43) | from the table extract | 0.6664 |
| N(0.42) | from the table extract | 0.6628 |
| Difference per 0.01 | 0.6664 − 0.6628 | 0.0036 |
| Add for 0.0064 | 0.0036 ÷ 0.01 × 0.0064 | 0.002304 |
| N(0.4264) | 0.6628 + 0.002304 | 0.6651 |
The same method gives N(0.5375) = 0.7045, and the call comes to ₹120 × 0.7045 − ₹115 × 0.9891 × 0.6651 = ₹8.89. Taking the nearest row instead moves every figure after it.
The calculator rule: why e and ln come from tables
ICAI's Guidance Notes for November 2026 (PDF) (opens in a new tab) allow a battery-operated calculator of up to 6 functions, 12 digits and two memories, and say plainly: "Scientific calculator is not allowed." So you can't key in e^x or ln.
In May 2026 Q6(b), ICAI printed d1 = 0.5375, e^−rt = 0.9891 and a cumulative area table extract inside the question. The study material appendix (PDF (opens in a new tab)) has the three tables you practise with: e^x, natural log and area under the normal curve. Practise reading them now, so the hall isn't the first time.
How to use this CA Final AFM formula sheet till 4 November
- Write it, don't read it. Each morning, write rows 1–50 from memory on a blank page, then mark the ones you missed. Those are tomorrow's first five.
- One formula, one past question. Pair each row with a question from ICAI's past papers or the RTP. The chapter marks in our CA Final AFM chapter-wise weightage tell you which rows pay most: derivatives, portfolio, forex and mutual funds.
- Formula line first in the answer. ICAI marks the descriptive part step by step, so the formula written before the figures can keep the method marks when a figure slips.
- Then write a full paper. A formula sheet doesn't show whether you finish 100 marks in 3 hours. Our CA Final AFM mock test guide has a 3-mock schedule to 4 November, and the RTP answers are in CA Final RTP Nov 2026 with answers.
Frequently asked questions
Is there an official ICAI formula sheet for CA Final AFM?
Not as a separate document. ICAI's Paper 2 study material page has the 15 chapters, the initial pages and an appendix of tables; the formulas sit inside the chapters. This sheet collects them from the November 2024 edition, with each chapter linked.
Where can I get a CA Final AFM formula sheet PDF?
The ICAI source is the chapter PDFs on the CA Final ICAI study material page. This page is the sheet itself: save or print it from your browser.
What is the H-model formula in CA Final AFM?
P0 = D0(1 + gn) ÷ (r − gn) + D0 × H × (gc − gn) ÷ (r − gn), where gn is long-run growth, gc the current growth and H half the transition period (Chapter 5).
Do I need to memorise the Black-Scholes formula if ICAI gives values?
Yes. In May 2026 ICAI gave d1 and e^−rt but not the formulas for d2, the call or the put. You still had to know rows 37–39 and interpolate N(d2).
Is RSI in the CA Final AFM syllabus for Nov 2026?
ICAI's November 2026 RTP sets a 14-day RSI question (Q11) under Security Analysis, with the formula in its answer. Learn row 6 and the four bands.
Put the formulas into a full AFM paper
Knowing 50 formulas is half the paper; choosing the right one inside a case under time is the other half. Our CA Final AFM mock tests are full-syllabus papers on ICAI's latest pattern, 30% MCQs and 70% descriptive, 100 marks in 3 hours, with brand-new questions and every chapter covered.
You write by hand and upload one PDF of your answer sheet. Your checked copy comes back within 24 hours, with ICAI-style step-wise marks, the reason for every mark cut and the correct line to write, plus detailed suggested answers with working notes. You can read preview pages of the first mock on the plan page before you buy. For every paper and level, see our CA test series and CA mock tests.