CFA Calculator Guide: BA II Plus Setup, Functions, and Common Errors

Last reviewed: August 9, 2026

Only two calculator families are permitted for CFA Program exams: the Texas Instruments BA II Plus, including the Professional version, and the Hewlett Packard 12C family listed in CFA Institute's policy. For most candidates starting from scratch, the BA II Plus is the easier model to learn because it uses familiar algebraic entry. Set its decimals, payment frequency, and END/BGN mode before practice, then use the same calculator throughout your preparation.

Quick Answer

For a Texas Instruments BA II Plus:

1. Set the display to nine decimals with 2nd . (FORMAT), 9 ENTER, then 2nd CPT (QUIT).

2. Set payments and compounding per year to 1 with 2nd I/Y (P/Y), 1 ENTER, ↓, 1 ENTER, then 2nd CPT.

3. Confirm ordinary annuity mode with 2nd PMT (BGN). If BGN appears, press 2nd ENTER (SET) to return to END, then 2nd CPT.

4. Clear the relevant worksheet before each new problem.

The calculator stores more values than the screen shows. Correct setup and clearing habits prevent silent input errors.

Key Takeaways

• CFA Institute authorizes the BA II Plus and HP 12C families only.

• The BA II Plus and BA II Plus Professional are both permitted.

• Error 5 commonly appears when PV, PMT, and FV all have the same sign in a TVM problem.

• Clear the current worksheet between problems; use a full reset only when needed.

• Calculator speed matters because Level I gives candidates about 90 seconds per multiple-choice question on average.

Which Calculators Are Allowed on the CFA Exam?

As of January 12, 2026, the CFA Institute policy permits these calculator family models:

Your calculator is inspected before the exam. Possession or use of an unauthorized model can void your result, even if a proctor failed to catch it at the initial inspection.

CFA Institute permits calculator covers, keystroke cards, loose batteries, and a small screwdriver for changing a BA II Plus battery. Instruction manuals are not permitted.

BA II Plus Setup Before You Start Studying

Configure the calculator once, verify the settings, and check them again after a full reset.

Set the Decimal Display

Use:

2nd . (FORMAT) → 9 → ENTER → 2nd CPT (QUIT)

Nine-decimal display reduces visible rounding during multi-step calculations. The calculator still stores greater internal precision than the display setting shows.

Set P/Y and C/Y to 1

Use:

2nd I/Y (P/Y) → 1 → ENTER → ↓ → 1 → ENTER → 2nd CPT

Setting payments per year and compounding periods per year to 1 makes period conversions explicit. You then enter the interest rate for the same period used by N. If a problem requires another frequency, either convert the inputs yourself or deliberately change P/Y and C/Y, then return them to 1 afterward.

Confirm END Mode

Use:

2nd PMT (BGN)

If the screen shows BGN, press 2nd ENTER (SET) to switch to END, then 2nd CPT to quit. Ordinary annuities use END mode. Annuities due use BGN mode. The calculator displays a BGN indicator when beginning-of-period payments are active; no END indicator appears.

How to Clear Worksheets Safely

Clear the smallest area that contains old inputs.

Clearing TVM does not clear cash-flow or statistics entries. That separation is helpful, but it also means an old value can survive if you clear the wrong worksheet.

Time Value of Money on the BA II Plus

The TVM worksheet solves for one unknown using:

• N: number of periods

• I/Y: interest rate per period

• PV: present value

• PMT: recurring payment

• FV: future value

Cash outflows are negative and inflows are positive. If you invest USD 1,000 today and receive the future value later, enter PV as negative and solve for a positive FV.

Example: Future Value of USD 1,000

Find the future value after five years at 6% annual interest with no additional payments:

1. 2nd FV to clear TVM.

2. 5 N.

3. 6 I/Y.

4. 1000 +/- PV.

5. 0 PMT.

6. CPT FV.

The result is approximately USD 1,338.23. If your answer has an unexpected sign, check the cash-flow signs before changing another setting.

Cash Flows, NPV, and IRR

The cash-flow worksheet handles uneven cash flows. Clear it before every new problem.

1. Press CF, then 2nd CE/C to clear the worksheet.

2. Enter the initial cash flow at CF0 and press ENTER.

3. Use ↓ to enter C01 and its frequency F01, then continue for later cash flows.

4. Press NPV, enter the discount rate at I, then press ↓ and CPT.

5. Press IRR, then CPT, to calculate the internal rate of return.

Keep the discount rate period consistent with the cash-flow period. Annual cash flows need an annual discount rate unless you intentionally convert the inputs.

Statistics Functions Worth Learning

The BA II Plus statistics worksheet is useful for descriptive statistics and regression. Learn it after TVM and cash flow because those functions tend to appear more often in valuation work.

The BA II Plus Professional adds functions such as NFV, MIRR, modified duration, payback, and discounted payback. Both versions contain the core TVM, cash-flow, and statistics tools needed for CFA preparation.

What Error 5 Means on a BA II Plus

Texas Instruments states that Error 5 occurs in a TVM calculation when PV, PMT, and FV have the same sign, either all positive or all negative. At least one cash flow normally needs the opposite sign because money paid out and money received occur on different sides of the transaction.

Error 5 can also appear when an iterative calculation has no valid solution, such as an IRR cash-flow stream with no change in sign.

When Error 5 appears:

1. Check the signs of PV, PMT, FV, and cash-flow entries.

2. Confirm that at least one outflow and one inflow exist where the calculation requires them.

3. Clear the relevant worksheet and re-enter the data.

4. Test the calculator with a known simple example.

BA II Plus Exam-Day Checklist

• Exact model appears on CFA Institute's authorized list.

• Calculator has been used throughout your preparation.

• Decimal, P/Y, C/Y, and END/BGN settings are confirmed.

• Battery is reliable.

• Loose spare battery and small screwdriver are packed if needed.

• Keystroke card is permitted and contains no prohibited notes.

• Instruction manual stays outside the testing room.

• TVM, cash-flow, and statistics clearing sequences are automatic.

FAQs

Which calculator is best for the CFA exam?

The BA II Plus is usually easier for candidates who are new to financial calculators. The HP 12C is also authorized and may suit users already comfortable with reverse Polish notation. Familiarity matters more than switching for marginal feature differences.

Is the BA II Plus Professional allowed?

Yes. CFA Institute expressly includes the BA II Plus Professional under its authorized Texas Instruments family.

Should you reset the BA II Plus before the exam?

Only if you need to clear all variables and formats. A full reset also removes your setup, so reconfigure decimals, P/Y, C/Y, and END/BGN immediately afterward.

Can you bring spare calculator batteries?

Yes. CFA Institute permits loose batteries and a small screwdriver for replacing a BA II Plus battery.

Make Calculator Practice Part of CFA Practice

Calculator fluency comes from using the same model on realistic problems until the setup, clearing, and core functions require little thought. Practice TVM, NPV, IRR, and statistics during question-bank work, then test the same habits under time pressure in a CFA mock exam.

If you need a broader preparation system, use the CFA study strategies hub. Compare structured providers only after defining the support you need through CFA prep reviews.

Official Sources

• CFA Institute Calculator Policy

• Texas Instruments BA II Plus Guidebook

• Texas Instruments NPV and IRR Guidance

• Texas Instruments Error 5 Guidance

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. PrepBenchmark is not affiliated with or endorsed by CFA Institute. See our Editorial Policy for how we source and verify time-sensitive information