Cost Management - Earned Value Formulas

Term Acronym Description Formula

How much was originally planned for this
project to cost. No one formula exists. BAC is
Budgeted At Completion BAC derived by looking at the total
How much did we BUDGET for the total budgeted cost for the project.
project effort
How much work should have been
completed at a point in time based on the
Planned Value plan? Derived by measuring where you
had planned to be in terms of work
PV Planned % Complete X BAC
(Budgeted Cost of Work completed at a point in the schedule).
Scheduled-BCWS)
What is the estimated value of the work to
be done?
How much work was actually completed at
a point in time? Derived by measuring
Earned Value where you actually are in terms of work
(Budgeted Cost of Work EV completed at a point in the schedule. Actual % Complete X BAC
Performed - BCWP)
What is the estimated value of the work
actually completed?
The money spent at a point in time?
Actual Cost
Sum of all costs for the given
(Actual Cost of Work AC
What is the actual cost for the work period of time.
Performed - ACWP)
accomplished?

The difference between what we expected

Cost Variance CV to spend and what was actually spent at a EV – AC
point in time.

The difference between where we planned

Schedule Variance SV to be in the schedule and where we are in EV – PV
the schedule.

The rate at which the project performance

Cost Performance Index CPI
is meeting cost expectations.

Schedule The rate at which the project performance

SPI
Performance Index is meeting schedule expectations.

Projecting the total cost at completion based

Estimate At Completion EAC
on project performance at a point in time.

From now on, how much MORE do we

expect it to cost to finish the project?
Estimate To Complete ETC EAC – AC
Projecting how much will be spent on the
project, based on past performance.
How much over or under budget do we
expect to be at the end of the project?
Variance At Completion VAC BAC - EAC
The difference between what was
budgeted and what will actually be spent.