What Are the Earned Value Formulas?
Here’s a list of all Earned Value formulas:
- CV = EV – AC (where CV is Cost Variance, EV is Earned Value, and AC is the Actual Cost).
- SV = EV – PV (where SV is Schedule Variane, EV is Earned Value, and PV is Planned Value).
- CPI = EV / AC (where EV is Earned Value, AC is the Actual Cost, and CPI is Cost Performance Index). A CPI < 1 means that the project is over-budget. A CPI = 1 means that the project is on budget, and a CPI > 1 means that the project is spending less than budgeted for.
- SPI = EV / PV (where EV is Earned Value, PV is Planned Value, and SPI is Schedule Performance Index). An SPI < 1 means that the project is behind schedule. An SPI = 1 means that the project is on schedule, and an SPI > 1 means that the project is ahead of schedule.
- EAC = BAC / CPI (where BAC is Budget At Completion, CPI is Cost Performance Index, and EAC is Estimate At Completion). EAC is the estimate of the final cost of the project based on the current numbers.
- ETC = EAC – AC (where EAC is Estimate At Completion, AC is the Actual Cost, and ETC is Estimate To Complete). ETC is the estimate of how much more the project will cost until its finished.
- VAC = BAC – EAC (where BAC is Budget At Completion, EAC is Estimate At Completion, and VAC is Variance At Completion). VAC is the difference between the planned budget and current estimate of the final project cost. A VAC of -$50,0000 means that the project is $50,000 over-budget.
Note: This short article serves as a great set of notes for studying for the PMP Exam.
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