BA II Plus & HP 12C

CFA Level 1 Calculator Guide

The BA II Plus settings CFA questions assume, the keystrokes for time value of money, NPV, IRR and bond pricing, the seven mistakes that turn a known answer into a wrong one, and an honest BA II Plus vs HP 12C comparison.

Factory setting P/Y = 12 is the most expensive default in the exam room.

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BA II Plus setup Keystroke walkthroughs BA II Plus vs HP 12C

Quick answer

How do you set up the BA II Plus for the CFA exam?

Set Decimal places to 9 (2nd FORMAT 9 ENTER 2nd QUIT), Payments per year to 1 (2nd P/Y 1 ENTER 2nd QUIT), Payment timing to END (2nd BGN 2nd SET 2nd QUIT), Before every problem to clear TVM (2nd CLR TVM). Then convert every rate and period yourself — for a semiannual bond, halve the yield and coupon and double N. CFA Institute permits only the Texas Instruments BA II Plus and the Hewlett Packard 12C in the exam room, and the BA II Plus is the model most candidates and prep providers use.

  • Only two calculator families are allowed: the Texas Instruments BA II Plus and the Hewlett Packard 12C
  • The BA II Plus ships with P/Y = 12 — set it to 1 before your first practice question
  • Press 2nd CLR TVM before every time-value problem; stale values survive power-off
  • One sign change per problem: money out is negative, money in is positive

The only two calculators allowed in the exam

CFA Institute permits exactly two families. Anything else — including phone apps and graphing calculators — is confiscated at check-in.

Texas Instruments BA II Plus

BA II Plus and BA II Plus Professional

Entry: Algebraic — type the number, then press the function key

  • Dedicated worksheets for cash flows (NPV/IRR), interest conversion, bonds, depreciation and amortisation
  • The model most prep providers teach and most candidates carry
  • Professional edition adds NFV, modified duration and payback in the cash-flow worksheet
  • Ships with P/Y = 12; must be set to 1 for CFA-style per-period questions
  • Stale values in the TVM worksheet survive power-off — clear before every problem

Hewlett Packard 12C

12C, 12C Platinum, 12C Prestige, and anniversary editions

Entry: Reverse Polish Notation (RPN) — enter values, then the operation; Platinum also offers algebraic

  • Very fast once RPN is second nature; no bracket handling
  • Compact financial register set: n, i, PV, PMT, FV plus cash-flow keys under g
  • Long battery life and a durable build many practitioners prefer
  • RPN has a real learning curve; do not switch to it in the final month
  • No interest-conversion worksheet — EAR must be computed by formula

BA II Plus settings for the CFA exam

Do the first four once and check them again the night before. The fifth is a habit.

  1. 1

    Decimal places → 9

    2ndFORMAT9ENTER2ndQUIT

    Shows every decimal the calculator holds, so rounding never creeps into multi-step answers. The display shows 9 digits; internal precision is higher.

  2. 2

    Payments per year → 1

    2ndP/Y1ENTER2ndQUIT

    The factory setting is 12. CFA questions are written per period, so with P/Y = 1 you convert rates and periods yourself (semiannual bond: halve the yield, double N) and nothing is silently divided by twelve.

  3. 3

    Payment timing → END

    2ndBGN2ndSET2ndQUIT

    Ordinary annuities pay at the end of each period, which is the default. If the display shows BGN, press the sequence to toggle back. Switch to BGN only for an annuity due, and switch back afterwards.

  4. 4

    Calculation method → Chn or AOS

    2ndFORMAT↓↓↓↓2ndSET2ndQUIT

    Chn (chain) evaluates strictly left to right: 2 + 3 × 4 = 20. AOS uses algebraic order: 2 + 3 × 4 = 14. Either is fine; know which one you have and bracket accordingly.

  5. 5

    Before every problem → clear TVM

    2ndCLR TVM

    Clears N, I/Y, PV, PMT and FV only; your settings stay. Leftover values from the previous question are the single most common source of a confidently wrong answer.

  6. 6

    Full reset (rarely)

    2ndRESETENTER2ndQUIT

    Restores factory defaults and wipes every worksheet — including P/Y back to 12 and decimals back to 2. Redo the setup above after any reset.

HP 12C equivalents

  1. 1

    Decimal places → 4 or more

    f4

    Press f then a digit to fix the display; f 9 shows the most. Internal precision is unaffected.

  2. 2

    Payment timing → END

    gEND

    g BEG switches to annuity-due mode and shows BEGIN on screen; g END switches back.

  3. 3

    Before every problem → clear financial registers

    fCLEAR FIN

    Clears n, i, PV, PMT and FV. f CLEAR REG wipes the cash-flow registers as well.

  4. 4

    Compounding on odd periods → C on

    STOEEX

    Toggles compound (rather than simple) interest for fractional periods, which matches the curriculum's assumptions. The display shows C when on.

Keystroke walkthroughs: TVM, NPV, IRR and bonds

Worked mini-examples on both models. The same guides sit inside every formula card in the dashboard, next to the formula they compute.

Future value of a lump sum

FV of $1,000 invested for 5 years at 8% per year

Module

BA II Plus

Always clear old TVM values first.

  1. 2ndCLR TVMclear the TVM worksheet
  2. 5N5 periods
  3. 8I/Y8% per period
  4. 1000+/-PVtoday's outflow, entered as negative
  5. 0PMTno interim payments
  6. CPTFVcompute future value

FV = 1,469.33

HP 12C

  1. fCLEAR FINclear financial registers
  2. 5n
  3. 8i
  4. 1000CHSPVoutflow, sign changed
  5. 0PMT
  6. FV

FV = 1,469.33

Present value of a lump sum

PV of $10,000 received in 5 years at 6% per year

Module

BA II Plus

Always clear old TVM values first.

  1. 2ndCLR TVMclear the TVM worksheet
  2. 5N5 periods
  3. 6I/Y6% per period
  4. 10000FVfuture inflow
  5. 0PMTno interim payments
  6. CPTPVcompute present value

PV = -7,472.58 (ignore the sign: value today is 7,472.58)

HP 12C

  1. fCLEAR FINclear financial registers
  2. 5n
  3. 6i
  4. 10000FV
  5. 0PMT
  6. PV

PV = -7,472.58

Present value of an annuity

PV of $100 received at the end of each year for 10 years at 7%

Module

BA II Plus

For an annuity DUE (payments at start of period) first set BGN mode: [2nd] [BGN] [2nd] [SET] [2nd] [QUIT] — and remember to switch back to END afterwards.

  1. 2ndCLR TVMclear the TVM worksheet
  2. 10N10 payments
  3. 7I/Y7% per period
  4. 100PMTlevel payment
  5. 0FVnothing left after the last payment
  6. CPTPVcompute present value

PV = -702.36 (ignore the sign)

HP 12C

For an annuity due press [g] [BEG] first ([g] [END] to switch back).

  1. fCLEAR FINclear financial registers
  2. 10n
  3. 7i
  4. 100PMT
  5. 0FV
  6. PV

PV = -702.36

Study dashboard+5 more keystroke guides

The dashboard formula sheet shows the calculator steps beside each formula, with your own additions saved alongside.

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Seven calculator mistakes that cost marks

Each one produces an answer that is on the option list.

Entering the rate as 0.08 instead of 8

I/Y and i take percentages. 8% is entered as 8.

Every cash flow entered as positive

The TVM worksheet needs one sign change: money out (the price you pay, the deposit) is negative, money in is positive. Same-sign inputs produce Error 5 or a nonsense yield.

Leaving P/Y at 12

A 10% annual rate over 5 years becomes 0.83% over 5 months. Set P/Y = 1 once and convert per period yourself.

BGN still switched on from the last annuity-due question

Look for the BGN indicator before every TVM problem and toggle it off.

Annual N and I/Y on a semiannual bond

Double the number of periods, halve the coupon and the yield. The answer to a yield question then needs doubling back.

Rounding an intermediate result and retyping it

Chain the calculation or store it with STO. Five decimals of rounding is enough to move an answer between two choices.

Cash-flow frequency left at F01 = 1

When a cash flow repeats, set its frequency instead of typing it in five times; and check that CF0 was cleared (CF, 2nd, CLR WORK).

BA II Plus vs HP 12C for the CFA exam

Both pass the exam. Pick the one you will practise on for the next six months.

BA II Plus and HP 12C compared for CFA Level 1
FeatureTI BA II PlusHP 12C
Entry styleAlgebraicRPN (Platinum: RPN or algebraic)
Cash-flow entryCF worksheet with frequency (F01…)g CF0 / g CFj / g Nj keys
Interest conversion (EAR)ICONV worksheetBy formula
Bond worksheetYes (price, yield, accrued)Yes (price, YTM)
Statistics & regressionDATA/STAT worksheetsΣ+ registers, linear estimation
Learning curveLow — most prep material uses itHigher — RPN takes weeks to become automatic
Best forMost Level I candidatesCandidates already fluent in RPN

Check the policy before exam day

CFA Institute lists the permitted models and the rules on covers, keystroke cards and battery swaps. Read the official calculator policy and bring spare batteries. CFA Master is not affiliated with CFA Institute.

Put the calculator to work

Formula sheetTime value of moneyNPV & IRRBond pricing & YTMHow to pass first timeChoosing study material

Keystrokes next to every formula you revise.

The dashboard formula sheet shows the calculator steps beside each formula, and you can add the ones your prep provider drills so every keystroke you need lives in one place.

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Frequently asked questions

Which calculators are allowed in the CFA exam?

Only the Texas Instruments BA II Plus (including the Professional edition) and the Hewlett Packard 12C (including Platinum, Prestige and anniversary editions). Phones, graphing calculators and any other model are not permitted, and CFA Institute staff inspect calculators at check-in.

Do you need the BA II Plus Professional for the CFA exam?

No. The standard BA II Plus does everything Level I asks. The Professional adds net future value, modified duration and payback period to the cash-flow worksheet, which saves a few keystrokes but is never required.

BA II Plus or HP 12C for the CFA exam?

Both are permitted and both handle every Level I calculation. The BA II Plus uses ordinary algebraic entry and has dedicated worksheets for interest conversion and bonds, and it is what most prep material teaches. The HP 12C uses Reverse Polish Notation, which is faster once learned but takes weeks to become automatic. Choose the one you will practise on for the whole plan, and do not switch in the final month.

How do you clear the BA II Plus before a question?

Press 2nd then CLR TVM to clear N, I/Y, PV, PMT and FV without touching your settings. For the cash-flow worksheet press CF, then 2nd and CLR WORK. A full reset (2nd RESET ENTER) also restores factory defaults — including P/Y = 12 — so redo your setup after one.

How do you calculate NPV on the BA II Plus?

Open the cash-flow worksheet with CF and clear it (2nd CLR WORK). Enter the initial outflow as a negative for CF0, then each cash flow as C01, C02 and so on with its frequency F01, F02. Press NPV, enter the discount rate as I, press the down arrow and CPT. IRR is the IRR key followed by CPT with the same cash flows.

Why does the BA II Plus show Error 5?

Error 5 means the TVM worksheet cannot find a solution, almost always because every cash flow was entered with the same sign. Enter the amount you pay (the price, the deposit) as negative with the +/- key and the amounts you receive as positive, then compute again.