### Example earned value formulas

Following are some examples of earned value definitions and formula columns that can be added to the earned value sheet. For the examples below, we will start the following values:

 • BAC = \$1,000
 • BCWS = \$600
 • BCWP = \$400
 • ACWP = \$750
 • EAC = \$1800

#### Cost Variance

Cost Variance (CV) is the difference between a task’s estimated or budgeted cost and its actual cost. A negative variance indicates the project or shell is over budget.

CV = BCWP – ACWP

Example: \$400 – \$750 = –\$350

#### Scheduled Variance

Scheduled Variance (SV) is the difference between the current progress and the scheduled progress of a task, in terms of cost. It is a comparison of the amount of work performed during a given period to what was scheduled to be performed. A negative variance means the project or shell is behind schedule.

SV = BCWP – BCWS

Example: \$400 – \$600 = –\$200

#### Cost Performance Index

Cost Performance Index (CPI) is the ratio of budgeted costs of work performed to actual costs of work performed. A value of less than 1 (less than 100%) indicates that the project or shell is over budget, and you are getting less work per dollar than planned.

CPI = BCWP/ACWP

Example: 400/750 = 0.53 or 53%

#### Scheduled Performance Index (SPI)

Schedule Performance Index (SPI) is the ratio of budgeted costs of work performed to budgeted costs of work scheduled. A value of less than 1 (less than 100%) indicates that the project or shell is behind schedule.

SPI = BCWP/BCWS

Example: 400/600 = 0.67 or 67%.

#### Cost Schedule Index (CSI)

The Cost Schedule Index (CSI) reflects the relationship between CPI and SPI. The CSI value should be close to 1.0. The farther the value from 1.0, project or shell recovery becomes more difficult to achieve.

CSI = CPI x SPI

Example: 0.53 x 0.67 = 0.3551

#### To Complete Performance Index (TCPI)

The To Complete Performance Index (TCPI) is the ratio of the work remaining to be done to funds remaining to be spent as of the status date. A TCPI value greater than 1 indicates a need for increased performance; less than 1 indicates performance can decrease. This helps determine how much of an increase in performance is necessary on the remaining project or shell tasks to remain within budget.

TCPI = (BAC - BCWP) / (BAC - ACWP)

Example: (\$1,000 – \$400) / (\$1,000 – \$750) = 2.4

#### Variance at Completion (VAC)

VAC is the difference between the BAC) and the EAC.

VAC = BAC – EAC

Example: \$1,000 – \$1,800 = –\$800

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