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(EV) Budgeted cost of work performed: The planned (budgeted) cost of tasks that are
complete. This is the actual earned value of the project, because it is the value of the
work that has been completed.
(AC) Actual Cost of work performed: The actual costs of tasks that have been completed.
(PV) Budgeted cost of work scheduled: The planned (budgeted) cost of all tasks
(completed and not yet completed) that are scheduled for the time period being reported
on.
(CV) Cost Variance: The cost variance is the difference between planned and actual
costs for completed work CV = EV- AC.
(CPI) Cost Performance Index: CPI = EV / AC. Cost Performance Index indicates
whether you are over (<1.0), under (>1.0), or on budget (=1.0).
(SV) Schedule Variance: The schedule variance is the difference between the budgeted
cost of work performed and the budgeted cost of work scheduled. SV = EV – PV.
(SPI) Schedule Performance Index. SPI = EV / PV. Schedule Performance Index
indicates whether you are behind (<1.0), ahead (>1.0), or on schedule (=1.0).
(BAC) Budget At Completion: The total project budget.
(EAC) Estimate At Completion: This is a reestimate of the total project budget. The
original budget is multiplied by the actual cost and divided by the earned value (budgeted
cost of work performed). EAC = original estimate * (AC / EV) = BAC / CPI = AC +
BAC - EV = AC + ETC. It’s a way of saying that if the current cost performance trends
continue, the final cost can be predicted.
(ETC) Estimate to Completion: ETC indicates how much more must be spent to
complete the project on time from today. ETC = EAC – AC.
Example: (x = task complete, - = task scheduled)
Task
A
B
C
D
E
F
G
H
Budget
100
100
100
100
100
100
100
100
EV
100
100
100
100
AC
80
100
90
110
PV
100
100
100
100
100
100
March
x
x
x
x
April
May
June
July
-
-
x
x
-
As of April 30: AC = 380, EV = 400, PV = 600.
CV = EV – AC = 400 – 380 = 20 which means the project is under budget.
CPI = EV / AC = 400 / 380 = 1.05 which means the project is 5% under budget, so for every dollar put into this
project, thus far we are getting a little more than a $1 in return.
SV = EV – PV = 400 – 600 = (-200) which means the project is behind schedule.
SPI = EV / PV = 400 / 600 = 0.66 which means project is 33% behind schedule and is only progressing at 66%
instead of 100%.
EAC = 800 * (380 / 400) = 760 which means that the project could possibly cost only $760 which is less than the
$800 budgeted.
ETC = EAC – AC = 760 – 380 = 400 which means $400 more must be spent from April 30 to complete the project
on time by the end of July.