Earned Value Management Calculations

Earned Value Management (EVM) Calculator

Use this calculator to quickly determine key Earned Value Management metrics for your project. Input your Planned Value (PV), Earned Value (EV), Actual Cost (AC), and Budget at Completion (BAC) to get insights into your project's cost and schedule performance.

function calculateEVM() { var pv = parseFloat(document.getElementById('plannedValue').value); var ev = parseFloat(document.getElementById('earnedValue').value); var ac = parseFloat(document.getElementById('actualCost').value); var bac = parseFloat(document.getElementById('budgetAtCompletion').value); if (isNaN(pv) || isNaN(ev) || isNaN(ac) || isNaN(bac)) { alert("Please enter valid numbers for all fields."); return; } // Cost Variance (CV) var cv = ev – ac; document.getElementById('cvResult').innerText = cv.toFixed(2); // Schedule Variance (SV) var sv = ev – pv; document.getElementById('svResult').innerText = sv.toFixed(2); // Cost Performance Index (CPI) var cpi = (ac === 0) ? "Undefined (AC is 0)" : (ev / ac).toFixed(2); document.getElementById('cpiResult').innerText = cpi; // Schedule Performance Index (SPI) var spi = (pv === 0) ? "Undefined (PV is 0)" : (ev / pv).toFixed(2); document.getElementById('spiResult').innerText = spi; // Estimate at Completion (EAC) – using BAC / CPI (assuming future performance is similar to past) var eac; if (typeof cpi === 'string' || parseFloat(cpi) === 0) { eac = "Cannot calculate (CPI is 0 or undefined)"; } else { eac = (bac / parseFloat(cpi)).toFixed(2); } document.getElementById('eacResult').innerText = eac; // Estimate to Complete (ETC) var etc; if (typeof eac === 'string') { etc = "Cannot calculate (EAC is undefined)"; } else { etc = (parseFloat(eac) – ac).toFixed(2); } document.getElementById('etcResult').innerText = etc; // Variance at Completion (VAC) var vac; if (typeof eac === 'string') { vac = "Cannot calculate (EAC is undefined)"; } else { vac = (bac – parseFloat(eac)).toFixed(2); } document.getElementById('vacResult').innerText = vac; // To Complete Performance Index (TCPI) – based on BAC var tcpi; var denominatorTCPI = bac – ac; if (denominatorTCPI === 0) { tcpi = "Undefined (BAC – AC is 0)"; } else { tcpi = ((bac – ev) / denominatorTCPI).toFixed(2); } document.getElementById('tcpiResult').innerText = tcpi; } // Run calculation on page load with default values window.onload = calculateEVM; .earned-value-management-calculator { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; background-color: #f9f9f9; padding: 25px; border-radius: 10px; box-shadow: 0 4px 8px rgba(0, 0, 0, 0.1); max-width: 700px; margin: 30px auto; color: #333; } .earned-value-management-calculator h2 { color: #2c3e50; text-align: center; margin-bottom: 20px; } .earned-value-management-calculator p { line-height: 1.6; margin-bottom: 15px; } .calculator-form label { display: block; margin-bottom: 8px; font-weight: bold; color: #34495e; } .calculator-form input[type="number"] { width: calc(100% – 22px); padding: 10px; margin-bottom: 15px; border: 1px solid #ccc; border-radius: 5px; box-sizing: border-box; } .calculator-form button { background-color: #3498db; color: white; padding: 12px 20px; border: none; border-radius: 5px; cursor: pointer; font-size: 16px; width: 100%; box-sizing: border-box; transition: background-color 0.3s ease; } .calculator-form button:hover { background-color: #2980b9; } .calculator-results { background-color: #ecf0f1; padding: 20px; border-radius: 8px; margin-top: 25px; border: 1px solid #dcdcdc; } .calculator-results h3 { color: #2c3e50; margin-top: 0; border-bottom: 2px solid #bdc3c7; padding-bottom: 10px; margin-bottom: 15px; } .calculator-results p { margin-bottom: 10px; font-size: 1.05em; } .calculator-results p strong { color: #2c3e50; display: inline-block; min-width: 180px; } .calculator-results span { font-weight: normal; color: #555; }

Understanding Earned Value Management (EVM)

Earned Value Management (EVM) is a project management methodology used to track project performance. It integrates project scope, cost, and schedule to provide an objective measure of project progress. By comparing the planned amount of work with what has actually been completed and the actual cost incurred, EVM helps project managers identify potential issues early and make informed decisions.

Key EVM Terms and Concepts:

• Planned Value (PV): The authorized budget assigned to the work to be accomplished up to a given point in time. It's the budget for the work scheduled to be completed.
• Earned Value (EV): The value of the work actually completed to date, expressed in terms of the budget authorized for that work. It answers the question: "How much work have we actually completed, in terms of its planned budget?"
• Actual Cost (AC): The total cost incurred in accomplishing the work that the EV measures. It's the actual money spent to achieve the earned value.
• Budget at Completion (BAC): The total planned budget for the entire project. It represents the total cost baseline.

EVM Performance Metrics:

These metrics are derived from PV, EV, and AC, providing insights into project health:

Variances (Absolute Measures):

• Cost Variance (CV): CV = EV - AC
  • Indicates if the project is under or over budget.
  • CV > 0: Under budget (favorable).
  • CV < 0: Over budget (unfavorable).
  • CV = 0: On budget.
• Schedule Variance (SV): SV = EV - PV
  • Indicates if the project is ahead or behind schedule.
  • SV > 0: Ahead of schedule (favorable).
  • SV < 0: Behind schedule (unfavorable).
  • SV = 0: On schedule.

Performance Indices (Efficiency Measures):

• Cost Performance Index (CPI): CPI = EV / AC
  • Measures the cost efficiency of the work performed.
  • CPI > 1: Performing efficiently (getting more value per dollar spent).
  • CPI < 1: Performing inefficiently (getting less value per dollar spent).
  • CPI = 1: On cost target.
• Schedule Performance Index (SPI): SPI = EV / PV
  • Measures the schedule efficiency of the work performed.
  • SPI > 1: Ahead of schedule (completing more work than planned).
  • SPI < 1: Behind schedule (completing less work than planned).
  • SPI = 1: On schedule target.

Forecasting Metrics:

These metrics help predict future project performance and final costs:

• Estimate at Completion (EAC): EAC = BAC / CPI (This is a common formula assuming future performance will be the same as past performance.)
  • The projected total cost of the project at its completion.
  • If EAC > BAC, the project is projected to be over budget.
  • If EAC < BAC, the project is projected to be under budget.
• Estimate to Complete (ETC): ETC = EAC - AC
  • The expected cost to finish all the remaining work of the project.
• Variance at Completion (VAC): VAC = BAC - EAC
  • The projected difference between the total planned budget and the projected actual cost at completion.
  • VAC > 0: Project is projected to finish under budget.
  • VAC < 0: Project is projected to finish over budget.
• To Complete Performance Index (TCPI): TCPI = (BAC - EV) / (BAC - AC)
  • The cost performance that must be achieved on the remaining work to meet the BAC.
  • TCPI > 1: Remaining work must be completed more efficiently than planned.
  • TCPI < 1: Remaining work can be completed less efficiently than planned.
  • TCPI = 1: Remaining work must be completed at the planned efficiency.

How to Use the Calculator:

1. Input Planned Value (PV): Enter the budgeted cost for the work scheduled to be completed by the current reporting date.
2. Input Earned Value (EV): Enter the budgeted cost of the work actually completed by the current reporting date.
3. Input Actual Cost (AC): Enter the actual cost incurred for the work completed by the current reporting date.
4. Input Budget at Completion (BAC): Enter the total budget for the entire project.
5. Click "Calculate EVM Metrics" to see the results.

Example Scenario:

Imagine a software development project with a total budget (BAC) of $200,000. At the 50% mark of the project timeline, the following data is available:

• Planned Value (PV): $100,000 (50% of the total budget should have been spent/earned by now)
• Earned Value (EV): $90,000 (Only $90,000 worth of work has actually been completed)
• Actual Cost (AC): $95,000 (We have actually spent $95,000 to achieve the $90,000 worth of work)
• Budget at Completion (BAC): $200,000

Using the calculator with these values:

• Cost Variance (CV): $90,000 – $95,000 = -$5,000 (Over budget)
• Schedule Variance (SV): $90,000 – $100,000 = -$10,000 (Behind schedule)
• Cost Performance Index (CPI): $90,000 / $95,000 = 0.95 (For every dollar spent, we only earned $0.95 worth of work)
• Schedule Performance Index (SPI): $90,000 / $100,000 = 0.90 (We are only completing 90% of the work planned for this period)
• Estimate at Completion (EAC): $200,000 / 0.95 = $210,526.32 (The project is now estimated to cost more than the original budget)
• Estimate to Complete (ETC): $210,526.32 – $95,000 = $115,526.32 (Remaining cost to finish the project)
• Variance at Completion (VAC): $200,000 – $210,526.32 = -$10,526.32 (Projected to finish $10,526.32 over budget)
• To Complete Performance Index (TCPI): ($200,000 – $90,000) / ($200,000 – $95,000) = $110,000 / $105,000 = 1.05 (To finish within the original BAC, the remaining work must be completed at an efficiency of 1.05, meaning we need to be 5% more efficient than planned for the rest of the project.)

This example clearly shows that the project is both over budget and behind schedule, and corrective actions are needed.