PMP - EVM Formulas

Question 1

BAC - Budget at Completion

Answer 1

Definition:
Original Budget of the Project

Formula:
None, it’s just the original budget

Question 2

PV - Planned Value

Answer 2

Definition:
Amount of money worth of work that we should have done on the project

Formula:
PV = Planned % Complete x BAC

Question 3

EV - Earned Value

Answer 3

Definition:
Amount of money worth of work you actually did on the project

Formula:
EV = Actual % Complete x BAC

Question 4

AC - Actual Cost

Answer 4

Definition:
Amount of money you already spent on the project

Formula:
None, it’s simply the amount of money already spent on the project

Question 5

CV - Cost Variance

Answer 5

Definition:
The difference between the work done and the money spent. This value should be positive for under budget (negative values indicate over budget)

Formula:
CV = EV - AC

Question 6

CPI - Cost Performance Index

Answer 6

Definition:
The rate of how we are spending to actually earning on the project. This value should be 1 and over for project under budget

Formula:
CPI = EV / AC

Question 7

SV - Schedule Variance

Answer 7

Definition:
The difference between the amount of work we should have done vs. the amount of work actually done. Negative values indicate behind schedule

Formula:
SV = EV - PV

Question 8

SPI - Schedule Performance Index

Answer 8

Definition: The rate of how we are meeting the project schedule. This value should be 1 and over for a project ahead of schedule

Formula:
SPI = EV / PV

Question 9

EAC - Estimate at Completion

Answer 9

Definition:
Forecasting the total cost of the project at the end based on the current spending rate of the project

Formula:
EAC = BAC / CPI

Question 10

ETC - Estimate to Completion

Answer 10

Definition:
Forecasting the amount that will be needed to complete the current project based on the current performance

Formula:
ETC = EAC - AC

Question 11

VAC - Variance at Completion

Answer 11

Definition:
The difference between the original budget and the new forecasted budget. This value should be positive for projects that may end under budget

Formula:
VAC = BAC - EAC

Question 12

TCPI - To-Complete Performance Index

Answer 12

Definition:
The performance that needs to be met to finish the project within the budget

Formula:
TCPI = (BAC - EV) / (BAC - AC)