Doug Stieb / Applied Project Solutions LLC – Maumee, OH, U.S.A. January 2013

EARNED VALUE - Calculations and Definitions

Calculations Definitions

BCWR = BAC – EV AC – Actual cost

CPI = EV / AC (originally BCWP / ACWP) originally ACWP – Actual cost of work performed

CV = EV – AC (originally BCWP – ACWP) BAC – Budget at completion (original project baseline)

CV % = CV / BCWP BCWR – Budgeted cost of work remaining

EAC = BAC / CPI EV – Earned value

EAC = BAC – EV + AC originally BCWP – Budgeted cost/work performed

EAC (low) = AC + (BCWR / CPI) CPI – Cost performance index

or EAC = AC + ((BAC – EV) / CPI) CV – Cost variance

EAC (high) = AC + (BCWR / (CPI x SPI)) EAC – Estimated at completion

or EAC = AC + ((BAC – EV) / (CPI x SPI)) PV – Planned value (original project baseline)

SPI = EV / PV (originally BCWP / BCWS) originally BCWS - Budgeted cost of work scheduled

SV = EV - PV (originally BCWP – BCWS) SPI – Schedule performance index

SV % = SV / PV SV – Schedule variance Performance Indices CPI > 1 indicates over budget. The cost efficiency ratio of earned value to actual costs. SPI > 1 indicates late. The schedule efficiency ratio of earned value accomplished against the planned

value.

EAC – Options for Estimated at Completion Original project budget (BAC) modified by a cost performance factor. EAC = BAC / CPI, used when current

variances are seen as typical and expectations are that similar variances will occur over the entire project. Actuals to date plus the remaining project budget (BAC – EV). EAC = BAC – EV + AC, used when current

variances are seen as atypical and expectations are that similar variances will not occur in the future. Actuals to date plus the remaining project budget (BAC – EV) modified by a cost performance factor. The

‘low end’, EAC = AC + (BCWR / CPI), uses the cumulative CPI estimate at completion for cost considerations.

Actuals to date plus the remaining project budget (BAC – EV) modified by a cost performance and schedule performance factor. The ‘high end’, EAC = AC + (BCWR / (CPI x SPI)), uses the cumulative CPI x SPI estimate at completion for cost and schedule considerations.