EVM Earned Value Management formulas
EVM Earned Value Management formulas

COST. Earned Value Management

Earned Value Management
Earned Value Management

Key words : Cost, Earned Value Management, Actual Cost, AC, Planned Value, PV, Earned Value, EV, Budget At Completion, BAC, Cost Variance, CV, Schedule Variance, SV, Cost Performance Index, CPI, Schedule Performance Index, SPI, Estimate At Completion, EAC, Estimate To Complete, ETC, To Complete Performance Index, TCPI, Variance At Completion, VAC

Key parameters :

Actual Cost (AC) :

This is how much we have spent so far.

Planned Value (PV) :

This is what we planned for the project.

Earned Value (EV) :

This is how much of the project work has been accomplished.

Budget At Completion (BAC) :

This is the total budget of the project.

Key Performance Variance :

Cost Variance

(CV = EV – AC) : 

That means : Am I over budget or under budget ?


Cost Performance Index

(CPI = EV / AC) : 

That means : 

CV < 1 CV = 1  CV > 1
Over budget On budget Under budget


Schedule Variance

(SV = EV – PV) : 

That means : Am I ahead schedule or behind Schedule ?


Schedule Performance Index

(SPI = EV / PV) : 

That means : 

CV < 1 CV = 1  CV > 1
Behind schedule On Schedule Ahead schedule


Estimate At Completion

(EAC = AC – ETC) : 

That means : What will be spent on whole project ?


Performance Variance :

Estimate To Complete

(ETC = BAC – EV) : 

That means : What will be spent on remaining project ?


To Complete Performance Index

That means : This index gives you the future cost performance index that you must follow for the remaining work if you want to complete it within the given budget.

(TCPI = (BAC – EV)/(BAC – AC))

(Use this formula if you are under budget)

(TCPI = (BAC – EV)/(EAC – AC))

(Use this formula if you are OVER budget)



Variance At Completion

(VAC = BAC – EAC) : 

That means : Variance at total project cost from budget


Philippe MARTINS

Philippe MARTINS is a certified Project Management Professional (PMI-PMP)® and also a certified Professional Scrum Master (PSM)®. Its target is "GETTING THE THINGS DONE !"
The next challenge for Philippe is to achieve the Risk Management Professional certification (PMI-RMP) on 2019.

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