The BA II Plus CFA setup and practice guide

The TI BA II Plus is the most common calculator in the Chartered Financial Analyst (CFA) exam room. Out of the box, three of its defaults disagree with how CFA questions are written, and the device holds prior values between problems. The result is that a candidate who knows the formula can still answer the question wrong because the calculator is set up the wrong way.

This page is a calm, candid guide for CFA Level I and Level II candidates who own a BA II Plus. It covers a four-step setup checklist, the four keystroke workflows you will use most often on the exam, and the six device-specific mistakes most likely to cost marks. Each workflow has a worked example you can replay in the free Charterly calculator, and each mistake links to a live warning you can trigger to see what the warning looks like in practice.

If you have not chosen a device yet, the HP 12C version of this guide covers the same ground for the RPN side, and the device comparison lays the two calculators side by side.

Open the BA II Plus calculator

Contents

1. The four-step setup checklist
2. TVM in five keystrokes
3. NPV and IRR through the CF worksheet
4. Bond price and Yield to Maturity (YTM) through TVM
5. Amortization in three steps
6. The six mistakes you are most likely to make
7. How Charterly helps
8. Frequently asked questions

1. The four-step setup checklist

Do this once when you take the calculator out of the box, and re-confirm before every mock exam.

1. Decimal places. Press 2nd then FORMAT. Type 4. Press ENTER. Press 2nd then QUIT. Four decimal places is the safe floor for CFA work. Two truncates intermediate values during chained calculations.
2. Algebraic order of operations. Press 2nd then FORMAT. Scroll to the Chn or AOS field. Press 2nd then SET to flip between them. Pick AOS for CFA-style algebraic expressions. Press 2nd then QUIT.
3. Periods per Year (P/Y). Press 2nd then P/Y. Type 1. Press ENTER. Press 2nd then QUIT. The Compounding periods per Year (C/Y) will follow automatically. Reset to 12 only for explicit monthly problems and back to 1 afterwards.
4. Payment timing. Press 2nd then BGN. Press 2nd then SET until the screen shows END. Press 2nd then QUIT. Switch to BGN only for annuity due problems and switch back the moment you finish them.

After the checklist runs, do one clean compute on a known answer. The free Charterly calculator will hold this setup for you across sessions and warn you if any of the four drifts.

Run the setup checklist in Charterly

2. TVM in five keystrokes

Time Value of Money (TVM) is the largest workflow on Level I. The BA II Plus stores five linked registers: N (number of periods), I/Y (periodic interest rate as a percent), Present Value (PV), Payment (PMT), and Future Value (FV). You enter four values and ask the calculator to compute the fifth.

Worked example. A candidate deposits 1,000 today into an account paying 6 percent per year, compounded annually. How much is in the account after 5 years?

Keystrokes:

1. 5 then N
2. 6 then I/Y
3. 1000 then +/- then PV (money you give to the account is negative)
4. 0 then PMT
5. CPT then FV

Expected result: 1,338.2256.

Why the sign convention matters. PV is negative because the candidate parted with the money. FV is positive because the candidate gets it back. If both signs are positive, the BA II Plus returns Error 5, because no real rate connects two same-sign cash flows with no payment in between (see mistake M4 below).

Clear before the next problem. Press 2nd then CLR TVM before the next TVM compute, every time. The BA II Plus does not clear TVM automatically.

Replay this example in Charterly

3. NPV and IRR through the CF worksheet

For uneven cash flows, use the Cash Flow (CF) worksheet. Net Present Value (NPV) and Internal Rate of Return (IRR) both live in the worksheet that opens behind the CF key.

Worked example. A project requires a 10,000 outlay today and is expected to produce 4,000 in year 1, 5,000 in year 2, and 6,000 in year 3. At a 10 percent discount rate, compute NPV and IRR.

Keystrokes for NPV:

1. CF
2. 2nd then CLR WORK (always clear before entering a new project)
3. 10000 then +/- then ENTER (CF0)
4. Arrow down. 4000 then ENTER (CF1). Arrow down. 1 then ENTER (frequency stays at 1).
5. Arrow down. 5000 then ENTER (CF2). Arrow down. 1 then ENTER.
6. Arrow down. 6000 then ENTER (CF3). Arrow down. 1 then ENTER.
7. NPV then 10 then ENTER. Arrow down. CPT.

Expected NPV: 2,276.4838.

Keystrokes for IRR (continuing from the same CF list):

1. IRR then CPT

Expected IRR: 21.6478 percent.

Why `CLR WORK` matters. The CF worksheet stores up to 24 entries and CE/C from the home screen does not touch them. If you reused the CF list from a prior problem without clearing it, NPV and IRR will both be wrong (see mistake M5 below).

Replay this example in Charterly

4. Bond price and YTM through TVM

For Level I, bond price and Yield to Maturity (YTM) route through TVM. The five-register approach is faster than the BA II Plus bond worksheet for exam-style questions where the settlement date is on a coupon date.

Worked example. A 10-year, 5 percent annual-coupon bond with a 1,000 face value trades to yield 6 percent. Compute the price.

Mapping bond terms to TVM:

Keystrokes:

1. 10 then N
2. 6 then I/Y
3. 50 then PMT
4. 1000 then FV
5. CPT then PV

Expected price: -926.3991. The negative sign is the sign convention. The price the buyer pays is 926.40 rounded.

To solve for YTM instead, set the four known registers and press CPT then I/Y. For semiannual coupon bonds, set N to twice the years and use the semiannual coupon as PMT, then double the result for the annual YTM.

Replay this example in Charterly

5. Amortization in three steps

The AMORT worksheet shows the principal, interest, and remaining balance for any range of payment periods on a fully solved TVM loan.

Worked example. A 200,000 mortgage at 6 percent annual rate, 30-year term, monthly payments. Compute the principal paid in year 1.

Setup TVM (using a 12-month P/Y for this problem only):

1. 2nd then P/Y. Type 12. Press ENTER. Press 2nd then QUIT.
2. 360 then N (30 years × 12 months)
3. 6 then I/Y
4. 200000 then PV
5. 0 then FV
6. CPT then PMT. Expected payment: -1,199.1011.

Run AMORT for payments 1 through 12:

1. 2nd then AMORT
2. 1 then ENTER at P1
3. Arrow down. 12 then ENTER at P2
4. Arrow down to read BAL (remaining balance after payment 12), PRN (principal paid in this range), and INT (interest paid in this range).

Expected principal paid in year 1: -2,456.0241 (about 2,456 of principal across the first twelve payments).

Reset P/Y after. Press 2nd then P/Y. Type 1. Press ENTER. Press 2nd then QUIT. Or you will trip mistake M2 on the next annual problem.

Replay this example in Charterly

6. The six mistakes you are most likely to make

This list is the BA II Plus side of the twelve CFA calculator mistakes page. Short version here, full explanation on the linked page.

• M1. BGN mode is on. Your annuity answer is one period of interest too high. Fix: 2nd then BGN, set to END, 2nd then QUIT.
• M2. P/Y is not 1. Your annual problem answers like a monthly one. Fix: 2nd then P/Y, type 1, ENTER, 2nd then QUIT.
• M3. TVM registers loaded from the prior problem. A value you typed two problems ago is still affecting the current answer. Fix: 2nd then CLR TVM between every problem.
• M4. PV and FV share the same sign. Calculator returns Error 5. Fix: flip the sign on whichever leg is the candidate's money.
• M5. CF list has leftover entries. NPV and IRR are off by the cash flow from the previous problem. Fix: inside CF, press 2nd then CLR WORK before entering the new list.
• M6. Chn mode is on when AOS is expected. 2 + 3 × 4 returns 20 instead of 14. Fix: 2nd then FORMAT, scroll to Chn, 2nd then SET to flip to AOS, 2nd then QUIT.

Charterly's calculator catches all six in real time and shows a non-blocking warning while the result is still on screen.

See all twelve mistakes (BA II Plus and HP 12C)

7. How Charterly helps

Charterly is a free, independent CFA calculator companion. It is not affiliated with Texas Instruments, Hewlett-Packard, or the CFA Institute.

For BA II Plus candidates, three pieces matter:

1. Keypad mode mirrors the device's key layout and key behavior. Practicing here builds the same muscle memory you will use on exam day.
2. Form mode gives you labeled inputs when you want to solve faster, with the same engine underneath. Use it for sanity checks and for the worked examples on this page.
3. Mistake detection runs the six rules above on every compute and surfaces a calm warning, never blocking the result.

Practice questions are tagged by Learning Outcome Statement (LOS) and include the formula, the keystrokes, and the most common candidate error to watch for. The free tier covers nine core calculators, three saved scenarios, ten practice questions per day, and seven days of history. Charterly Pro lifts those caps and adds full mock exams, advanced calculators, and Pro-only exports.

If you use HP 12C as a back-pocket or primary device, the HP 12C CFA guide covers the same workflows in RPN, and the same calculator companion runs both. Nothing on this page assumes you have picked sides.

Open the BA II Plus calculator

Browse LOS tagged drills

8. Frequently asked questions

Is the BA II Plus allowed on the CFA exam? Yes. The CFA Institute permits the Texas Instruments BA II Plus and the Hewlett-Packard 12C, both standard and Professional variants. Confirm on the CFA Institute's calculator policy page before exam day, because policies can change.

Do I need the BA II Plus Professional? No, but it adds a handful of keys (breakeven, depreciation methods, conditional cash flows) that are useful for Level II. Standard BA II Plus is enough for most Level I curriculums.

How long does the setup take? Less than two minutes once. Then re-confirm before every mock or practice session.

Can I switch to HP 12C halfway through prep? You can, and Charterly supports both, so you do not lose your practice history or saved scenarios when you switch. The HP 12C uses RPN, so plan an extra week to retrain muscle memory.

Where do I see the formula and keystrokes for each question? On any practice question detail page. Charterly shows the formula, the candidate's most common error for that LOS, and the keystroke path for both the BA II Plus and the HP 12C.

Does Charterly auto fix mistakes for me? No. Charterly surfaces the warning and shows the keystroke fix. It never silently changes your inputs.