Earned Value Management Calculator
Compute Estimate at Completion (EAC) from Budget at Completion, Actual Cost, and Earned Value to forecast final project cost. Ideal for project status reviews and cost performance reporting.
About this calculator
Earned Value Management (EVM) is a project control technique that integrates scope, schedule, and cost data into unified performance metrics. The primary output of this calculator is the Estimate at Completion (EAC), calculated as: EAC = BAC / (EV / AC), which is equivalent to EAC = BAC / CPI. Here, CPI (Cost Performance Index) = EV / AC, where EV (Earned Value) is the budgeted cost of work actually performed and AC (Actual Cost) is what was actually spent to date. A CPI above 1.0 means the project is delivering more value per dollar than planned; below 1.0 means overspending. EAC predicts the total cost at project completion if current spending efficiency continues. Planned Value (PV) is used to derive the Schedule Performance Index: SPI = EV / PV, indicating whether the project is ahead or behind schedule.
How to use
A project has a Budget at Completion (BAC) of $100,000. After several months, the Actual Cost (AC) is $40,000 and the Earned Value (EV) is $35,000. The Planned Value (PV) is $38,000. Step 1: CPI = EV / AC = 35,000 / 40,000 = 0.875. Step 2: EAC = BAC / CPI = 100,000 / 0.875 = $114,286. Step 3: SPI = EV / PV = 35,000 / 38,000 ≈ 0.92. The project is over budget (CPI < 1) and slightly behind schedule (SPI < 1), and is forecast to cost $114,286 at completion — $14,286 over budget.
Frequently asked questions
What is the difference between EAC and ETC in earned value management?
EAC (Estimate at Completion) is the forecasted total cost of the entire project from start to finish based on current performance. ETC (Estimate to Complete) is the remaining cost expected from the current point to project end, calculated as ETC = EAC − AC. EAC answers 'how much will the whole project cost?' while ETC answers 'how much more money do we need?' Both figures are essential for budget re-authorization decisions and communicating financial status to sponsors.
How does a CPI below 1.0 affect the project budget forecast?
A CPI below 1.0 means the project is spending more money than the value of work being delivered — for every dollar spent, less than one dollar of planned value is produced. This inefficiency is compounded over the remaining work, causing EAC to exceed BAC. For example, a CPI of 0.80 implies the project will ultimately cost 25% more than originally budgeted. Project managers should investigate root causes such as scope creep, underestimated tasks, or resource inefficiency, and implement corrective actions before the gap widens.
When should I use earned value management versus simple budget tracking?
Simple budget tracking compares planned spend to actual spend at a point in time, but it cannot tell you whether the money spent produced the expected amount of work. EVM adds the Earned Value dimension, which isolates whether a budget variance is caused by overspending, slow progress, or both. EVM is most valuable on projects lasting more than three months with well-defined work breakdown structures. For small or highly exploratory projects, the overhead of setting up EVM baselines may outweigh the benefit.