The Terminology The Formulas

Acr Term Description Acr Term Formula Description

PV Planned Value PV is the authorized budget assigned to the CV
scheduled work to be accomplished for a scheduled
activity or work breakdown structure component.
EV Earned Value EV is the value of completed work expressed in
terms of the approved budget assigned to that work SV
for a scheduled activity or work breakdown structure
component. The cumulative EV is the sum of the
approved budgets for activities completed during a
given period.
Cost CV = EV - AC CV provides the cost performance of the
Variance project to help determine whether the project
is proceeding as planned. Subtracting AC
from EV calculates the cost variance.
Schedule SV = EV - PV SV indicates the project's schedule
Variance performance. This value can indicate whether
the project work is proceeding as planned.
Calculate the SV by subtracting the PV from
the EV.

AC Actual Cost AC is the total costs incurred and recorded in CPI Cost CPI = EV / AC For the CPI of individual budgets, divide EV
accomplishing work performed during a given time Performance by AC. For a cumulative CPI, divide the sum
period for a scheduled activity or work breakdown Index of all EV budgets by the sum of all ACs. A
structure component. Actual cost can sometimes be CPI of less than one indicates that the project
direct labor hours alone; direct costs alone; or all is over budget, and a CPI of over one
costs, including indirect costs indicates that the project is coming in under
the estimated budget.
BAC Budget at BAC is the total amount of funds to be spent at the
Completion completion of the task. SPI Schedule SPI = EV / PV Project managers can use the SPI to help
Performance predict when their projects will be completed.
EAC Estimate at EAC is used by project managers to give their best Index To calculate the SPI, divide EV by PV. An
Completion estimate of the total costs of projects based on SPI of one indicates the project is on
actual costs to date. The most frequently used schedule; greater than one indicates it is
formula for EAC is AC plus ETC; this formula is ahead of schedule; and less than one
typically used when previous assumptions regarding indicates it is behind schedule.
costs are wrong.
EAC Estimate at EAC = BAC / CPI EAC is used by project managers to give their
ETC Estimate to ETC is the expected cost needed to complete all the Completion best estimate of the total costs of projects
Complete remaining work for a scheduled activity, a group of based on actual costs to date. The most
activities, or the project. ETC helps project managers EAC = AC + ETC
frequently used formula for EAC is AC plus
predict what the final cost of the project will be upon ETC; this formula is typically used when
completion. EAC = AC + (BAC - previous assumptions regarding costs are
EV) wrong.
VAC Variance at VAC forecasts the difference between the Budget-at-
Completion Completion and the expected total costs to be ETC Estimate to ETC = EAC - AC ETC is the expected cost needed to complete
accrued over the life of the project based on current Complete all the remaining work for a scheduled
trends. activity, a group of activities, or the project.
ETC helps project managers predict what the
final cost of the project will be upon
completion.

VAC Variance at VAC = BAC - EAC VAC forecasts the difference between the
Completion Budget-at-Completion and the expected total
costs to be accrued over the life of the project
based on current trends.

CPIc Cumulative CPIc = Σ EV / Σ AC Cumulative CPI Method forecasts the total

Cost amount to be spent by adding costs incurred
Performance to date to the remaining work to be earned,
Index which has been weighted against the current
CPI performance value. Starts from the 20
percent completion point.