EVM Formulas Reference Guide

Professionals as well as pmp aspirants frequently need to refer to evm formulas. In fact many believe that the earned value management (evm) formulas are difficult to remember. However, with little practice and understanding anyone can recollect these formulas. Following table consists of essential list of evm formulas.

Commonly Used EVM Formulas

Abbreviation

Name

Equation

Interpretation of Result

SV
Schedule Variance
SV = EV – PV
Positive (>0) = Ahead of schedule
Equal To Zero = On schedule
Negative (<0) = Behind Schedule
SPI
Schedule Performance Index
SPI = EV/PV
Greater than 1.0 = Ahead of schedule
Exactly 1.0 = On schedule
Less than 1.0 = Behind schedule.
CV
Cost variance
CV = EV – AC
Positive (>0) = Under planned cost
Equal To Zero = On planned
Negative (<0) = Over planned cost
CPI
Cost Performance Index
CPI = EV/AC
Greater than 1 = Under planned cost
Exactly 1 = On planned cost
Less than 1 = Over Planned cost
VAC
Variance at Completion
VAC = BAC – EAC
Positive (>0) = Under planned cost
Equal To Zero = On planned cost
Negative (<0) = Over planned cost
EAC
Estimate at Completion
EAC = BAC/CPI
EAC = AC + BAC – EV
EAC = AC + Bottom-up ETC
EAC = AC + [(BAC-EV)/ (CPI x SPI)]
If the CPI is expected to be the same
If future work will be accomplished at the planned rate
If the initial plan is no longer valid, use:
If both the CPI and SPI influence the remaining work
ETC
Estimate to Complete
ETC = EAC – AC
ETC = Reestimate
ETC = (BAC-EV)/CPI
TCPI
To Complete Performance Index
TCPI = (BAC – EV) / (BAC-AC)
TCPI = (BAC-EV) / (EAC-AC)
Work Remaining = BAC – EV
Funds Remaining = BAC – AC
Funds Remaining = EAC – AC
Greater than 1.0 = Harder to complete
Exactly 1.0 = Same to complete
Less than 1.0 = Easier to complete

Earned Value Management S-Curve

EVM S curve is a definitive tool to track project progress. It is also an effective tool to predict project health. EVM indices such as schedule performance index and cost performance index assist in reporting project status. Further EVM can also forecast project completion dates as well as budget required for completing the balance work. The evm graph also helps to recollect important evm formulas.

EVM_S_CURVE_Formulas
Earned Value Management Formulas & S Curve

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