How to Calculate Earned Value

Earned value answers whether you are over budget and behind schedule — right now. Here is how to compute it.

For the full concept, see Earned Value Management.

Steps

Establish your baseline: scope, schedule and a time-phased budget (this gives PV).
Measure Earned Value (EV) — the budgeted cost of work actually completed.
Record Actual Cost (AC) for that completed work.
Compute variances: CV = EV − AC and SV = EV − PV.
Compute indices: CPI = EV ÷ AC and SPI = EV ÷ PV.
Forecast: EAC = BAC ÷ CPI, then act on the trend.