Earned Value Calculator
Computes Cost Variance (CV) by comparing the budgeted value of completed work to what was actually spent. Use it during project execution to measure cost efficiency and forecast budget health.
About this calculator
Earned Value Management (EVM) tracks both cost and schedule performance in a single framework. The core metric here is Cost Variance (CV): CV = EV − AC, where Earned Value (EV) = (budgetAtCompletion × percentComplete) / 100 and Actual Cost (AC) = actualCost. So the full formula is: CV = (budgetAtCompletion × percentComplete / 100) − actualCost. A positive CV means you are delivering work for less than planned (under budget); a negative CV signals overspending. You can also derive the Cost Performance Index: CPI = EV / AC, where CPI > 1 indicates cost efficiency. EVM is widely used in PMI/PMBOK frameworks and government contracts to give an objective, data-driven project health check.
How to use
Imagine a project with a total Budget at Completion (BAC) of $100,000. After one month, the project is 40% complete and has spent $45,000 in Actual Costs. Step 1 — Calculate Earned Value: EV = (100,000 × 40) / 100 = $40,000. Step 2 — Calculate Cost Variance: CV = EV − AC = $40,000 − $45,000 = −$5,000. The negative CV of −$5,000 means the project is $5,000 over budget for the work completed so far. CPI = 40,000 / 45,000 ≈ 0.89, meaning you are getting only $0.89 of value for every $1.00 spent.
Frequently asked questions
What is earned value and why is it more useful than simply tracking spending?
Earned Value represents the budgeted cost of the work actually completed — it answers 'what should we have spent given how much we've done?' Tracking spending alone only tells you how much money has gone out; it says nothing about whether equivalent work has been delivered. EV links financial data to physical progress, allowing much earlier detection of cost and schedule problems. This is why EVM is mandated on many government and large-scale contracts.
How do I interpret a negative cost variance on my project?
A negative cost variance (CV < 0) means your actual costs exceed the budgeted cost of work performed — you are over budget for the progress achieved. The magnitude matters: −$500 on a $500,000 project is negligible, while −$500 on a $5,000 project is critical. Persistent negative CV trends often signal scope creep, underestimated task effort, or resource inefficiency. When CV is consistently negative, project managers should re-baseline the budget or implement corrective actions such as reducing scope.
What is the difference between cost variance and schedule variance in earned value management?
Cost Variance (CV) measures whether you are spending more or less than planned for the work done: CV = EV − AC. Schedule Variance (SV) measures whether you are ahead or behind schedule in value terms: SV = EV − PV, where PV is the Planned Value (budgeted cost of work scheduled by now). Both use EV as the common baseline, making them directly comparable. A project can be on budget (CV ≈ 0) but behind schedule (SV < 0), or vice versa — tracking both gives a complete performance picture.