Concept Formula

Planned Value (PV) : It's normally measured at a particular

point of time.Value of work planned to be completed at that NA
point in time.
Actual cost (AC) : What the project has spent so far. NA
Budget at Completion (BAC) : Total budget allocated for the
NA
work to be performed on the project.
Earned value (EV) : It is the physical work completed to date
and the authorized budget for that work.It is the percentage
EV = % Work Complete * BAC
of the BAC that represents the actual work completed in the
project

Cost variance (CV) : Provides cost performance of the project.

CV = EV - AC
Helps determine if Project is proceeding as planned.
Schedule variance (SV) : Provides schedule performance of
the project. Helps determine if Project is proceeding as SV = EV - PV
planned.

Cost Performance Index (CPI) : Measure of cost effeciency of

the project. CPI = EV/AC

Schedule Performance Index (SPI) : Measure of schedule

effeciency of the project. Used to determine if project is
behind, on or ahead schedule. Can be used to help predict SPI = EV/PV
when a project will be completed.

ETC = EAC - AC
When Original Estimates are flawed.

Estimate to complete (ETC) : From this point on, how much Reestimate
more do we expect it to cost to finish the project (a forecast)?
Three variations of this formula are based on conditions the
project may be experiencing ETC = (BAC - EV)/CPI
When Estimates are typical

ETC = BAC - EV
When Estimates are atypical

EAC = AC + Bottom Up ETC

 EAC = BAC/CPI

Estimate at completion (EAC) : These are forecasting formulas

to predict the likely completed costs of the project based on
current scenarios within the project. EAC = AC+ (BAC - EV)

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

To-complete performance index (TCPI): It answers the

question "To stay within budget, what rate do we need to TCPI = (BAC- EV)/(BAC-AC)
meet for the remaining work?"

Variance at Completion (VAC) : Projection of being over or

under budget based on current performance. VAC= BAC - EAC
 Result Interpretation

Positive – under budget

Negative – over budget

Positive – Ahead of Schedule (Good)

Negative – Behind Schedule (Bad)

1 = Good. We are getting 1$ for every 1$ spent.

Funds are used as planned.
>1 = Good. We are getting >1$ for every 1$ spent.
Funds are used better than planned.
<1 = Bad. We are getting <1$ for every 1$ spent.
Funds are not used as planned.

1 = Good. We are progressing at the original planned

rate.
>1 = Good. We are progressing at a faster rate than
originally planned.
<1 = Bad. We are progressing at a slower rate than
originally planned.

This formula calculates the total project cost as of

today minus what has been spent to date.

Reestimate the remaining work from the bottom up.

This formula calculates the total project cost as of

today minus what value of work that has been
achieve. The cost performance of the project is
factored

This formula calculates actual costs to date plus a

revised estimate for all the remaining work. It is
used when the original estimate was fundamentally
flawed.
This formula is used if no variances from the BAC
have occurred or if you will continue at the same
rate of spending (as calculated in your cumulative
CPI or based on the trends that have led to the
current CPl).

This formula calculates actual costs to date plus

remaining budget. It is used when current variance
are thought to be atypical of the future. It is
essentially AC plus the remaining value of work to
perform.

This formula calculates actual to date plus the

remaining budget modified by performance. It is
used when current variances are thought to be
typical of the future and when project schedule
constraints will influence the completion of the
remaining effort. So for example, it might be used
when the cumulative CPI is less than one and a firm
completion date must be met.

This formula divides the value of the work

remaining to be done by the money remaining to
do it.
Greater than 1 – harder to complete and meet BAC.
Less than 1 – easier to complete and meet BAC

Positive – under budget

Negative – over budget
Hover over the red dots for notes.
Answer these questions first and the formulas will be calculated for you.

What is the project budget? $ 755,000.00

How complete is the project? 40%
How complete should the project be? 40%
How much has the project spent? $221,000
Spend Forecast? $ 534,000.00

Budget at completion 755,000

Actual costs 221,000
Earned value 302,000
Planned value 302,000
Cost variance 81,000
Schedule variance 0
Cost performance index 1.37
Schedule performance index 1.00
Estimate at completion 552,500
To-complete performance index (BAC) 0.85
To-complete performance index (EAC) 1.37
Variance at completion 202,500
 Indexes

1.60
1.40
1.20
1.00
0.80
Cost performance
0.60 Schedule perform
0.40 index

0.20
0.00

Variances

90,000

80,000

70,000

60,000

50,000
Cost varia
40,000
Schedule
30,000

20,000

10,000

0
exes

Cost performance index

Schedule performance
index

ances

Cost variance
Schedule variance
Sr No. Program/Project Tower Region IBS Owner/PM

SPI 1 = Good. We are progressing at the original planned rate.

SPI >1 = Good. We are progressing at a faster rate than originally planned.
SPI <1 = Bad. We are progressing at a slower rate than originally planned.

CPI 1 = Good. We are getting 1$ for every 1$ spent. Funds are used as planned.
CPI >1 = Good. We are getting >1$ for every 1$ spent. Funds are used better than planned.
CPI <1 = Bad. We are getting <1$ for every 1$ spent. Funds are not used as planned.
 Project completion TGM Adoption

Schedule Performance Index (SPI) Cost Performance Index (CPI) As per

Schedule/P Actual % Y/N
lan %

er than planned.
 TGM Completeness

TG Stage TGM Timeliness RAG

% of current TG completion
Comments