Earned Value Management (EVM) Formulas

All 16 cards in this deck

1. 1.What is Planned Value (PV)?Show answer

   The authorized budget assigned to the work scheduled to be completed by a given point in time.

2. 2.What is Earned Value (EV)?Show answer

   The budgeted value of the work actually completed by a given point in time.

3. 3.What is Actual Cost (AC)?Show answer

   The actual cost incurred for the work performed by a given point in time.

4. 4.What is Budget at Completion (BAC)?Show answer

   The total budget for all the work on the project — the sum of all planned values.

5. 5.Formula for Cost Variance (CV)Show answer

   CV = EV − AC. Negative means over budget; positive means under budget.

6. 6.Formula for Schedule Variance (SV)Show answer

   SV = EV − PV. Negative means behind schedule; positive means ahead of schedule.

7. 7.Formula for Cost Performance Index (CPI)Show answer

   CPI = EV ÷ AC. Below 1.0 means over budget (getting less than $1 of value per $1 spent); above 1.0 means under budget.

8. 8.Formula for Schedule Performance Index (SPI)Show answer

   SPI = EV ÷ PV. Below 1.0 means behind schedule; above 1.0 means ahead of schedule.

9. 9.EAC formula when current cost performance is expected to continue (typical variance)Show answer

   EAC = BAC ÷ CPI

10. 10.EAC formula when the past variance is a one-off and future work will go as planned (atypical variance)Show answer

    EAC = AC + (BAC − EV)

11. 11.EAC formula when both cost and schedule performance will affect the remaining workShow answer

    EAC = AC + [(BAC − EV) ÷ (CPI × SPI)]

12. 12.EAC formula when the original estimate is no longer validShow answer

    EAC = AC + bottom-up ETC (a fresh estimate of the remaining work).

13. 13.Formula for Estimate to Complete (ETC)Show answer

    ETC = EAC − AC. The expected cost to finish the remaining work.

14. 14.Formula for Variance at Completion (VAC)Show answer

    VAC = BAC − EAC. Negative means the project is forecast to finish over budget.

15. 15.Formula for To-Complete Performance Index (TCPI) to finish on the original budgetShow answer

    TCPI = (BAC − EV) ÷ (BAC − AC). Above 1.0 means the remaining work must be done more efficiently than planned.

16. 16.Formula for TCPI to finish on a revised estimate (EAC)Show answer

    TCPI = (BAC − EV) ÷ (EAC − AC)

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