How to Calculate Earned Value
What is Earned Value?
Measures project progress by comparing work completed to budget spent. Identifies if projects are ahead, on-track, or behind schedule/budget.
Formula
SPI = EV ÷ PV (schedule performance)
- SPI
- EV ÷ PV (schedule performance) — EV ÷ PV (schedule performance)
- EV
- EV value — Variable used in the calculation
- PV
- PV value — Variable used in the calculation
Step-by-Step Guide
- 1Planned Value (PV): budgeted cost for work scheduled
- 2Earned Value (EV): budgeted cost of completed work
- 3Actual Cost (AC): real cost spent
- 4SPI = EV ÷ PV (schedule performance)
- 5CPI = EV ÷ AC (cost performance)
Worked Examples
Input
80% done, $1M
Result
$800k EV
Common Mistakes to Avoid
- ✕Not updating progress regularly (weekly minimum)
- ✕Misaligning earned value with actual completion percentage
Frequently Asked Questions
What do SPI and CPI indicate?
SPI >1 ahead schedule, <1 behind; CPI >1 under budget, <1 over budget.
How do I forecast final cost?
Estimate at Completion (EAC) = BAC ÷ CPI; shows final cost if current performance continues.
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