Self-study CPE · Method 2

The NASBA word-count formula, explained

Self-study CPE credit under the NASBA/AICPA Standards comes from one of two methods — a pilot test, or the prescribed word-count formula (Standard 7.02). This is the formula, term by term, with the exclusions and rounding rules that decide the final number.

The formula (Standard 7.02.6)

CPE credit = [ (word count ÷ 180) + audio/video minutes + (question count × 1.85) ] ÷ 50

Three terms, each with a defined meaning:

Word count ÷ 180 — 180 is the average adult reading speed in words per minute, so this term converts required reading into minutes.
Audio/video minutes — only non-narration segments count: A/V time enters the formula only when the segment adds learning beyond narrating the text (Standard 7.02.7).
Question count × 1.85 — 1.85 is the estimated minutes per question. The count includes review questions (even beyond the required minimums), exercises, and assessment questions (Standard 7.02.6).

Dividing the total minutes by 50 converts to credits, because one CPE credit is one 50-minute period of program length (Standard 7.01).

What goes into the word count — and what stays out (Standard 7.02.5)

The count covers only required-reading text that is critical to achieving the stated learning objectives. Excluded:

the course introduction and participant instructions,
author biographies,
the glossary and table of contents,
any pre-program assessment,
appendixes of supplementary reference material.

If the full text of a rule or regulation is worth giving participants, it belongs in an appendix outside the count, with only the pertinent excerpts in the counted course text. Review questions, exercises, and assessment questions are handled by the question term of the formula and stay out of the word count.

Rounding: down, never up (Standards 7.01, 7.02.6)

Results that don't land exactly on an allowed increment round down to the nearest fifth, half, or whole credit — whichever increment the sponsor has chosen, and it must be applied uniformly across all sessions of a program.

A worked example

A self-study course with 27,000 counted words, 10 minutes of instructional (non-narration) video, and 20 questions total:

(27,000 ÷ 180) + 10 + (20 × 1.85) = 150 + 10 + 37 = 197 minutes
197 ÷ 50 = 3.94 → rounds down to 3.8 (fifths) · 3.5 (halves) · 3.0 (whole)

Note what rounding direction does here: 3.94 never becomes 4.0. The increment the sponsor has committed to decides which lower number goes on the certificate.

All-video programs (Standard 7.02.7)

If the entire program is a video, the word-count term drops out entirely:

CPE credit = [ video minutes + (question count × 1.85) ] ÷ 50

Adaptive programs: average across every path (Standard 7.02.6)

Adaptive self-study runs the formula on every potential completion path, documents all of them, and issues credit as the average — nine paths means nine calculations, summed and divided by nine.

Purchased courses (Standard 7.02.8)

Buying a course from a vendor doesn't outsource the math. If it comes with a word-count calculation, the sponsor must review it for appropriateness; if none was performed or provided, the sponsor must run the calculation itself or pilot test under Method 1.

Check your own numbers in ten seconds. The free ProveStead calculator runs this exact formula on the numbers you type in — word count, A/V minutes, question count — and shows the arithmetic. It's a gut-check on partial inputs, not a determination: the whole course is the audit.

Common questions

What is the NASBA word-count formula?

It is Method 2 for determining self-study CPE credit under Standard 7.02.6 of the NASBA/AICPA Statement on Standards for CPE Programs: credit = [(word count ÷ 180) + audio/video minutes + (question count × 1.85)] ÷ 50, rounded down to the nearest fifth, half, or whole credit.

Why 180 and 1.85?

Per Standard 7.02.6, 180 is the average adult reading speed in words per minute, and 1.85 is the estimated number of minutes a participant spends per question.

Do introductions, glossaries, and appendixes count toward the word count?

No. Standard 7.02.5 limits the count to required-reading text critical to the stated learning objectives, and specifically excludes the course introduction, participant instructions, author bios, glossary, table of contents, pre-program assessments, and appendixes of supplementary reference material.

Can I round the result up?

No. Standards 7.01 and 7.02.6 permit rounding down only — to the nearest fifth, half, or whole credit, applied uniformly.

Recompute your credit — free, 10 seconds How ProveStead maps the NASBA Standards

No approval implied. ProveStead maps course materials against published standards by locator. This guide paraphrases the Standards for orientation — it is not the Standards' text, not legal advice, and implies no NASBA or AICPA review, endorsement, or approval. Boards of accountancy and applicable licensing bodies hold final authority over credit acceptance.

This guide reflects the August 2026 edition of the NASBA/AICPA Statement on Standards for CPE Programs. The edition applies on a staged schedule: 2026-08-01 for applications for a new or added delivery method, 2027-03-01 for programs still in development or making first publication, and 2028-11-01 for programs existing as of 2026-07-31 — state licensing bodies may set different dates. Locators cite the Statement on Standards for CPE Programs; ProveStead publishes its own paraphrases only — never the standard's text.