Earned Value Formulas

Question 1

Budgeted at Completion
BAC

Answer 1

How much will it cost?

Question 2

Planned Value
PV

Answer 2

What is our planned spending?

Question 3

Earned Value
EV

Answer 3

What has been earned to date?

Question 4

Actual Cost
AC

Answer 4

What has been spent up to date?

Question 5

Cost Variance
CV

Answer 5

What is the difference from the planned costs?

CV = EV - AC

If CV is negative, the task is over budget
If CV is zero, the project is on budget
If CV is positive, the project is under budget

Question 6

Schedule Variance
SV

Answer 6

What is the difference from the planned schedule?

SV = EV - PV

Question 7

Cost Performance Index
CPI

Answer 7

What is the value for money?

CPI = EV / AC
If CPI < 1, the task is over budget
If CPI = 1, the task is on budget
If CPI > 1, the task is under budget

Question 8

Schedule Performance Index
SPI

Answer 8

What is the current progress vs the planned schedule?

SPI = EV / PV
If SPI < 1, the task is behind schedule
If SPI = 1, the task is on schedule
If SPI > 1, the task is ahead of schedule

Question 9

Estimate at Completion
EAC

Answer 9

What will be the final costs according to the current schedule and costs?

The reason for the variance is likely to continue.
EAC = BAC / CPI

The reason for the variance is not likely to continue. The project performance is expected to return to planned levels.
EAC = AC + (BAC – EV)

When you feel the project’s future cost performance is likely to be impacted by the past schedule performance as well as cost, you can use a hybrid.

EAC = AC + [(BAC – EV) / (SPI x CPI)]

When you need to change the estimate because the initial assumptions were wrong.
EAC = AC + ETC

Question 10

Estimate to Completion
ETC

Answer 10

How much will it cost to complete from current point in time?

ETC = BAC / CPI

Question 11

Variance at Completion
VAC

Answer 11

What is the difference between the original budget and what will be spent to complete?

VAC = BAC - EAC
If VAC is negative, you need that much more money to complete the project.
If VAC is positive, you will finish the project with that much of a surplus

Question 12

CPI Cumulative
CPIC

Answer 12

What are the peformance efficiency factors at performance each review?

CPIC = Σ EV / Σ AC

Question 13

To Complete Performance Index
TCPIC or TCPIs

Answer 13

What is the performance needed to meet the cost/schedule goals?

For Original Budget:
TCPIC = (BAC - EV) / (BAC – AC)

For Current Forecast
TCPIC = (EAC - EV) / (EAC – AC)