Earned Value Calculator
Use this tool to calculate key Earned Value Management (EVM) metrics based on your project's Planned Value (PV), Earned Value (EV), and Actual Cost (AC) at a specific point in time.
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Understanding Earned Value Management (EVM)
What is EVM?
Earned Value Management (EVM) is a project management technique for measuring project performance and progress in an objective manner. It combines scope, schedule, and cost measures into a single integrated system.
Key EVM Terms and Formulas
EVM relies on three core values:
- Planned Value (PV): The authorized budget assigned to work scheduled to be completed by a specific date.
- Earned Value (EV): The value of the work actually completed as of a specific date, measured against the planned cost baseline.
- Actual Cost (AC): The total cost incurred (direct and indirect) in accomplishing the work that the EV measured.
From these, key performance indicators are calculated:
- Cost Variance (CV): Indicates if the project is under or over budget.
CV = EV - AC
Interpretation: CV > 0 (Under Budget), CV < 0 (Over Budget), CV = 0 (On Budget). - Schedule Variance (SV): Indicates if the project is ahead of or behind schedule.
SV = EV - PV
Interpretation: SV > 0 (Ahead of Schedule), SV < 0 (Behind Schedule), SV = 0 (On Schedule). - Cost Performance Index (CPI): Measures cost efficiency.
CPI = EV / AC
Interpretation: CPI > 1 (Cost Efficient - Under Budget), CPI < 1 (Cost Inefficient - Over Budget), CPI = 1 (On Budget). - Schedule Performance Index (SPI): Measures schedule efficiency.
SPI = EV / PV
Interpretation: SPI > 1 (Schedule Efficient - Ahead of Schedule), SPI < 1 (Schedule Inefficient - Behind Schedule), SPI = 1 (On Schedule).
A value of 1 or greater for an index (CPI or SPI) is generally favorable, while less than 1 is unfavorable.
Earned Value Management Examples
Click on an example to see typical inputs and calculated results:
Example 1: Project On Schedule & Under Budget
Scenario: At the end of month 1, your project planned to complete $10,000 of work (PV), you actually completed $10,000 worth of work (EV), and spent $9,000 (AC).
Inputs: PV = 10000, EV = 10000, AC = 9000
Results:
CV = 10000 - 9000 = 1000
SV = 10000 - 10000 = 0
CPI = 10000 / 9000 ≈ 1.11
SPI = 10000 / 10000 = 1.00
Interpretation: The project is on schedule (SV=0, SPI=1) and under budget (CV>0, CPI>1).
Example 2: Project Behind Schedule & Over Budget
Scenario: By the midpoint, planned work was $50,000 (PV), only $40,000 worth was completed (EV), and actual costs were $45,000 (AC).
Inputs: PV = 50000, EV = 40000, AC = 45000
Results:
CV = 40000 - 45000 = -5000
SV = 40000 - 50000 = -10000
CPI = 40000 / 45000 ≈ 0.89
SPI = 40000 / 50000 = 0.80
Interpretation: The project is significantly behind schedule (SV<0, SPI<1) and over budget (CV<0, CPI<1).
Example 3: Project Ahead of Schedule & Over Budget
Scenario: End of week 3: PV = $3000, EV = $4000 (more work completed than planned), AC = $3500.
Inputs: PV = 3000, EV = 4000, AC = 3500
Results:
CV = 4000 - 3500 = 500
SV = 4000 - 3000 = 1000
CPI = 4000 / 3500 ≈ 1.14
SPI = 4000 / 3000 ≈ 1.33
Interpretation: The project is ahead of schedule (SV>0, SPI>1) and under budget (CV>0, CPI>1). Note: CV is calculated as EV-AC, not PV-AC.
Example 4: Project On Schedule & Over Budget
Scenario: Mid-project: PV = $20,000, EV = $20,000, AC = $22,000.
Inputs: PV = 20000, EV = 20000, AC = 22000
Results:
CV = 20000 - 22000 = -2000
SV = 20000 - 20000 = 0
CPI = 20000 / 22000 ≈ 0.91
SPI = 20000 / 20000 = 1.00
Interpretation: The project is on schedule (SV=0, SPI=1) but over budget (CV<0, CPI<1).
Example 5: Project Behind Schedule & Under Budget
Scenario: Monthly review: PV = $15,000, EV = $12,000, AC = $11,000.
Inputs: PV = 15000, EV = 12000, AC = 11000
Results:
CV = 12000 - 11000 = 1000
SV = 12000 - 15000 = -3000
CPI = 12000 / 11000 ≈ 1.09
SPI = 12000 / 15000 = 0.80
Interpretation: The project is behind schedule (SV<0, SPI<1) but is cost-efficient on the work it *has* completed (CV>0, CPI>1).
Example 6: Early Stage - No Work Done Yet
Scenario: Project just started, reporting on day 1. PV = $0, EV = $0, AC = $0.
Inputs: PV = 0, EV = 0, AC = 0
Results:
CV = 0 - 0 = 0
SV = 0 - 0 = 0
CPI = 0 / 0 = Undefined
SPI = 0 / 0 = Undefined
Interpretation: At the very start with no progress, variances are zero, and indices are undefined as no value has been earned or spent yet for comparison.
Example 7: Work Started, No Cost Recorded Yet
Scenario: You've completed $500 worth of work (EV), planned was $1000 (PV), but no invoices have been processed yet (AC = $0).
Inputs: PV = 1000, EV = 500, AC = 0
Results:
CV = 500 - 0 = 500
SV = 500 - 1000 = -500
CPI = 500 / 0 = Infinite
SPI = 500 / 1000 = 0.50
Interpretation: The project is behind schedule (SV<0, SPI<1). The CPI is "Infinite" because work has been done (EV>0) but no cost recorded yet (AC=0), indicating extreme cost efficiency *on paper* at this specific reporting point. This usually points to a data recording lag.
Example 8: Over-spending Before Work Started (Data Anomaly)
Scenario: You spent $100 (AC) on initial setup, but no work is yet planned or completed for this period (PV=0, EV=0).
Inputs: PV = 0, EV = 0, AC = 100
Results:
CV = 0 - 100 = -100
SV = 0 - 0 = 0
CPI = 0 / 100 = 0.00
SPI = 0 / 0 = Undefined
Interpretation: The project is over budget (CV<0, CPI=0) relative to the earned value. It's on schedule (SV=0, SPI undefined as PV=0). This highlights costs incurred without corresponding planned or earned value, possibly administrative costs or costs for future work.
Example 9: Project Completed On Budget & Ahead of Schedule
Scenario: At the project's original scheduled end date, the total planned work was $100,000 (PV). All $100,000 worth of work is completed (EV), and total actual cost was $95,000 (AC).
Inputs: PV = 100000, EV = 100000, AC = 95000
Results:
CV = 100000 - 95000 = 5000
SV = 100000 - 100000 = 0
CPI = 100000 / 95000 ≈ 1.05
SPI = 100000 / 100000 = 1.00
Interpretation: By the original planned completion date, the project finished all planned scope (SV=0, SPI=1, relative to the PV at this date) and was under budget (CV>0, CPI>1).
Example 10: Monitoring a Task Within a Project
Scenario: Focusing on one task: Planned cost for the task by today is $2000 (PV). $1500 worth of the task is complete (EV), and you've spent $1600 on it so far (AC).
Inputs: PV = 2000, EV = 1500, AC = 1600
Results:
CV = 1500 - 1600 = -100
SV = 1500 - 2000 = -500
CPI = 1500 / 1600 ≈ 0.94
SPI = 1500 / 2000 = 0.75
Interpretation: This specific task is behind schedule (SV<0, SPI<1) and slightly over budget (CV<0, CPI<1) compared to planned.
Frequently Asked Questions about Earned Value Management
1. What are PV, EV, and AC?
PV (Planned Value): The budgeted cost of work scheduled. EV (Earned Value): The budgeted cost of work performed. AC (Actual Cost): The real cost incurred for work performed.
2. How do I interpret Cost Variance (CV) and Schedule Variance (SV)?
If the variance is positive (> 0), it's favorable (under budget for CV, ahead of schedule for SV). If negative (< 0), it's unfavorable (over budget for CV, behind schedule for SV). Zero (= 0) means on target.
3. How do I interpret Cost Performance Index (CPI) and Schedule Performance Index (SPI)?
If the index is greater than 1 (> 1), performance is favorable (cost efficient for CPI, schedule efficient for SPI). If less than 1 (< 1), it's unfavorable (cost inefficient for CPI, schedule inefficient for SPI). Exactly 1 means on target.
4. Can I use different currencies or units?
Yes, but you must use the same consistent unit (e.g., USD, EUR, points, hours) for all three inputs (PV, EV, AC). The results (CV, SV) will be in that same unit, and the indices (CPI, SPI) are unitless ratios.
5. What if AC or PV is zero?
If AC is zero, CPI will be infinite if EV > 0 (meaning work was performed with no cost recorded yet) or undefined if EV is also zero. If PV is zero, SPI will be infinite if EV > 0 (meaning work was done where none was planned yet) or undefined if EV is also zero. The calculator handles these specific cases.
6. How often should I calculate EVM metrics?
Regularity is key. Most projects track EVM weekly, bi-weekly, or monthly, depending on the project's size, duration, and required level of control. Consistency in reporting periods is important.
7. What's a good CPI or SPI?
A CPI or SPI of 1.0 indicates performance is exactly on plan. Values slightly above 1.0 are generally considered good. Significant deviations below 1.0 (< 0.95) are red flags indicating potential problems.
8. Does this calculator predict the final project outcome?
No, this basic calculator only provides performance *at a specific point in time*. More advanced EVM analysis uses these metrics to forecast the Estimate at Completion (EAC) and Estimate to Complete (ETC), giving a prediction of the final cost and schedule.
9. Why is EVM important?
EVM provides an early warning system for project performance issues. It allows project managers to see if the project is on track, identify potential problems before they become critical, and make data-driven decisions.
10. Where do I get the PV, EV, and AC values?
These come from your project's baseline plan (for PV), progress tracking (to determine EV based on completed work vs. the plan), and accounting/financial systems (for AC).
