FRM Calculator Guide: Allowed Calculators, Usage Rules and Time-Saving Tips

The Financial Risk Manager (FRM) exam is very demanding in its preparation. What adds to the difficulty of this exam is its structure of questions and marking scheme. If you want to pass the exam and get the FRM qualification, having the right type of calculator and its best usage is something you should definitely know about. shouldn’t slow you down. Many students who lose marks in this exam, which is full of complex questions, do so not due to a lack of knowledge, but because of struggles with several calculations and the use of calculators.

What is an FRM Calculator?

An FRM calculator is a specific financial calculator permitted to be used in the exam by the Global Association of Risk Professionals (GARP), the conducting body. It is designed for candidates to perform complex financial calculations revolving around time value of money (TVM), bond pricing, cash flow analysis, etc., quickly and accurately during the exam, which a normal calculator cannot do. When you enroll in the best online FRM course in India, the following are some purposes of an FRM calculator you will learn about:

• Solve time value of money problems by calculating NPV, IRR, and discounting
• Perform statistical calculations such as mean, standard deviation, etc., easily
• Handle cash flow analysis and bond pricing
• Speed up calculations under time constraints

Which Calculator is Allowed in the FRM Exam?

Using a calculator during FRM is important for every candidate. However, you should also know that bringing any other calculator with you, except the one permitted by GARP, will lead to your disqualification. Additionally, there are several differences in the FRM vs CFA exam comparison, but the permitted calculators are not one of them, as the same calculator is used in both exams. Below are the calculators permitted by GARP to be used during Level I and Level II of the FRM exam.

1. Texas Instruments BA II Plus

The Texas Instruments BA II Plus Standard as well as Professional mode can be used in the FRM exam. Several students find it slow for advanced statistical calculations, while beginners prefer it because it offers:

• User-friendly interface with clearly labeled buttons
• Built-in worksheets for TVM and cash flow calculations
• Affordable price and easy availability

2. Hewlett-Packard 12C

The Hewlett-Packard 12C, popularly known as HP 12C, is another approved calculator preferred by candidates due to its speed and efficiency. Its approved models include HP 12C Platinum, 12C Platinum 25th Anniversary Edition, 12C 30th Anniversary Edition, and HP12C Prestige. It uses Reverse Polish Notation (RPN), which is difficult to use for beginners, but turns out to be a massive help during the exam when a candidate builds a practice of using it. It is chosen because of its:

• Faster calculations using RPN logic
• Durable and reliable
• Efficiency for repetitive financial computations

What Are the Rules of Using a Calculator in the FRM Exam?

While GARP has allowed the use of two specific calculators during the FRM exam, it has also enforced strict guidelines regarding the use of calculators to ensure fairness. Failing to adhere to these guidelines will result in penalties or disqualification. Here are the rules mentioned in those guidelines:

• No sharing of calculators during the exam
• Calculators must not have programmable or communication features
• The memory of the calculator should be cleared before entering the exam hall
• Spare calculators are allowed, but they must also be approved models

What Are Some Tips for Using an FRM Calculator?

In an exam like FRM, which is tough to clear, the right usage of calculators can significantly improve your exam performance. The following are some time-saving tips you can use, which are taught by experts in an FRM or CFA online course India.

1. Use Worksheets Properly

Calculators like HP 12C and BA II Plus come with built-in worksheets for specific calculations such as TVM and cash flows. These are used so that the user does not have to go for repetitive manual input. The benefits of using worksheets in this efficient way are:

• Low calculation time
• Minimum input errors
• Better consistency while attempting similar questions

2. Learn Common Shortcuts

Both BA II Plus and HP 12C have several shortcuts that can significantly speed up your calculations when used correctly. However, properly using these shortcuts involves proper practice. Some examples of the same are:

• Use direct formulas with the help of worksheets
• Memorize quick keystrokes for YTM, NPV, and depreciation
• Avoid unnecessary clearing of memory between questions to waste less time. 
• Use 2nd + CLR TVM for partial resets when needed.

3. Practice with Real Exam Questions

Build a proper habit of using the allowed calculators by handling them during mock tests or self-study sessions. This increases your speed and reduces the chances of errors while using the calculator. This measure helps to:

• Improve speed under pressure
• Helps identify frequently used functions during a paper

Conclusion

Choosing the right FRM calculator to be used in your exam and learning how to use it efficiently is a critical part of preparation that impacts your overall performance. By understanding the rules of the exam and practicing consistently according to those rules, you can easily reduce the number of errors you make during an exam to negligible and improve your speed, both of which are a part of clearing the exam.

Enroll for the best FRM coaching at Fintelligents, where experts teach you, with the best tips, and lead you on your journey to get the FRM qualification.

FAQs

Q. Which calculator is allowed for FRM exam?

The TI BA II Plus, TI BA II Plus Professional, and HP 12C calculator (including Platinum, Anniversary Edition, and Prestige) are allowed for the FRM exam.

Q. Can I take two calculators into an exam?

Yes, you can take two calculators into the FRM exam to avoid suffering from technical issues, but only when they are both GARP-approved models.

Q. Is the HP 12C still relevant today?

Yes, the HP 12C is still relevant today and is the best for FRM candidates to use in their exams with prior practice.