EARNED VALUE FORMULAES

S.No

Name (Abbreviation)

Formula

No.ofCommunicationChannels

n (n-1)/2

SchedulePerformanceIndex(SPI)

SPI = EV/PV

<1behindschedule,=1onschedule,>
1aheadofschedule

CostPerformanceIndex(CPI)

CPI = EV/AC

<1Overbudget,=1Onbudget,>1
Underbudget

ScheduleVariance(SV)

SV = EV PV

<0Behindschedule,=0Onschedule,>
0Aheadofschedule

CostVariance(CV)

CV = EV AC

<0Overbudget,=0Onbudget,>0
Withinbudget

EstimateatCompletion(EAC)if
originalisflawed

EAC = AC + New
ETC

iftheoriginalestimateisbasedonwrong
data/assumptionsorcircumstanceshave
changed

EstimateatCompletion(EAC)if
BACremainsthesame

EAC=AC + BAC
EV

thevarianceiscausedbyaonetimeevent
andisnotlikelytohappenagain

AC=ActualCost,BAC=Budgetatcompletion,EV=EarnedValue

EstimateatCompletion(EAC)if
CPIremainsthesame

EAC= BAC/CPI

iftheCPIwouldremainthesametillendof
project,i.e.theoriginalestimationisnot
accurate

BAC=Budgetatcompletion,CPI=Costperformanceindex

EstimateatCompletion(EAC)if
substandardperformance
continues

EAC=AC + [(BAC EV)/(CPI*SPI)]

usewhenthequestiongivesallthevalues
(AC,BAC,EV,CPIandSPI),otherwise,this
formulaisnotlikelytobeused

AC=ActualCost,BAC=Budgetatcompletion,EV=EarnedValue,CPI
=CostPerformanceIndex,SPI=SchedulePerformanceIndex

Earned Value

Interpretation

Remarks

nshouldincludetheprojectmanager,n= e.g.iftheno.ofteammembersincreasefrom4to5,theincreasein
numberofmembersintheteam
communicationchannels:5(51)/24(41)/2=4

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EV=EarnedValue,PV=PlannedValue
EV=EarnedValue,AC=ActualCost.sometimestheterm
cumulativeCPIwouldbeshown,whichactuallyistheCPIuptothat
moment
EV=EarnedValue,PV=PlannedValue

EV=EarnedValue,AC=ActualCost

AC=ActualCost,NewETC=NewEstimatetoCompletion

EARNED VALUE FORMULAES

S.No

Name (Abbreviation)

Formula

TCPI= (BAC EV)/

(BAC AC)
10

ToCompletePerformanceIndex
(TCPI)

<1Underbudget,=1Onbudget,>1
Overbudget

Remarks
BAC=Budgetatcompletion,EV=Earnedvalue,AC=ActualCost

TCPI=Remaining
Work/Remaining
Funds

BAC=Budgetatcompletion,EV=Earnedvalue,CPI=Cost
performanceindex

EAC=EstimateatCompletion,AC=ActualCost

11

EstimatetoCompletion

ETC= EAC -AC

12

VarianceatCompletion

VAC= BAC EAC

13

PERTEstimation

14

StandardDeviation

<0Underbudget,=0Onbudget,>0
Overbudget

(P O)/6

BAC=Budgetatcompletion,EAC=EstimateatCompletion
O=Optimisticestimate,M=MostLikelyestimate,P=Pessimistic
estimate.

(O + 4M + P)/6

LS ES
15

Interpretation

thisisaroughestimateforthestandard
deviation
<0Behindschedule,=0Oncriticalpath

O=Optimisticestimate,P=Pessimisticestimate

LS=Latestart,ES=Earlystart

Float/Slack

LF EF
16

http://edwarddesigner.com/web/pmpcalculationformulae/

17

http://edwarddesigner.com/web/pmpearnedvaluequestionsexplanined/

Earned Value

LF=Latefinish,EF=Earlyfinish

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