How to Calculate Earned Value

Planned value - Budgeted cost of work planned called planned value.

Actual cost - Actual cost is the total cost incurred for the actual work completed.

Earned value - Budgeted cost of work performed call earned value.

1. EV = PV to date x RP

    RP = Rate of performance

    

2. Cost variance = EV – AC

    AC = Actual cost

3. Schedule variance = EV – PV

    

4. CPI – Cost performance index

    CPI = EV/AC

    This gives the efficiency of work.

5. SPI = Schedule performance index

    SPI = EV/PV

6. EAC – Estimated actual cost

    EAC = BAC/CPI

    BAC – Budgeted actual cost

7. Actual finishing date of the project = Original period of project / SPI