Earned Value Management (EVM) Calculator
Enter the current project values to calculate performance metrics.
Project Status Summary:
"; if (cv < 0) { status += "Cost Performance: Over budget (CV is negative)."; } else if (cv > 0) { status += "Cost Performance: Under budget (CV is positive)."; } else { status += "Cost Performance: On budget (CV is zero)."; } if (sv < 0) { status += "Schedule Performance: Behind schedule (SV is negative)."; } else if (sv > 0) { status += "Schedule Performance: Ahead of schedule (SV is positive)."; } else { status += "Schedule Performance: On schedule (SV is zero)."; } if (cpi < 1) { status += "Cost Efficiency: Inefficient (CPI 1) { status += "Cost Efficiency: Efficient (CPI > 1)."; } else { status += "Cost Efficiency: On target (CPI = 1)."; } if (spi < 1) { status += "Schedule Efficiency: Inefficient (SPI 1) { status += "Schedule Efficiency: Efficient (SPI > 1)."; } else { status += "Schedule Efficiency: On target (SPI = 1)."; } document.getElementById('statusResult').innerHTML = status; }Understanding Earned Value Management (EVM)
Earned Value Management (EVM) is a powerful project management methodology used to track project performance and progress in an objective manner. It integrates project scope, schedule, and cost to provide a comprehensive view of project health. 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, forecast future performance, and make informed decisions.
Why is EVM Important?
- Early Warning System: EVM provides early indications of project performance deviations, allowing for timely corrective actions.
- Objective Performance Measurement: It offers a quantitative and objective way to measure project progress, moving beyond subjective assessments.
- Improved Forecasting: EVM metrics enable more accurate forecasting of project completion dates and final costs.
- Enhanced Communication: It provides clear, concise data for communicating project status to stakeholders.
- Better Decision Making: With a clear understanding of project health, managers can make better decisions regarding resource allocation, scope changes, and risk mitigation.
Key EVM Metrics Explained
The EVM calculator above uses several core metrics to assess project performance:
1. Planned Value (PV)
Definition: The authorized budget assigned to scheduled work. It represents the budgeted cost of work scheduled to be completed by a given point in time.
Interpretation: This is your baseline – what you planned to spend and achieve by now.
2. Earned Value (EV)
Definition: The value of the work actually completed to date, expressed in terms of the budget authorized for that work. It's the budgeted cost of work performed.
Interpretation: This tells you the value of the work you've actually accomplished, regardless of how much you spent.
3. Actual Cost (AC)
Definition: The total cost incurred in accomplishing the work that the EVM system measured as completed. It's the actual cost of work performed.
Interpretation: This is the real money you've spent to achieve the earned value.
4. Budget at Completion (BAC)
Definition: The total planned budget for the entire project. It represents the sum of all planned values for the project.
Interpretation: This is the total budget allocated for the entire project from start to finish.
Performance Indicators
5. Cost Variance (CV)
Formula: CV = EV - AC
Interpretation:
CV > 0: Under budget (good).CV < 0: Over budget (bad).CV = 0: On budget.
6. Schedule Variance (SV)
Formula: SV = EV - PV
Interpretation:
SV > 0: Ahead of schedule (good).SV < 0: Behind schedule (bad).SV = 0: On schedule.
7. Cost Performance Index (CPI)
Formula: CPI = EV / AC
Interpretation:
CPI > 1: Cost efficient (getting more value per unit of cost).CPI < 1: Cost inefficient (getting less value per unit of cost).CPI = 1: On target for cost efficiency.
8. Schedule Performance Index (SPI)
Formula: SPI = EV / PV
Interpretation:
SPI > 1: Schedule efficient (completing more work than planned).SPI < 1: Schedule inefficient (completing less work than planned).SPI = 1: On target for schedule efficiency.
Forecasting Metrics
9. Estimate at Completion (EAC)
Formula: EAC = BAC / CPI (assuming current CPI will continue for the remainder of the project)
Interpretation: This is the revised estimate of the total cost of the project at completion, based on current performance.
10. Estimate to Complete (ETC)
Formula: ETC = EAC - AC
Interpretation: This is the estimated cost to complete the remaining work of the project.
11. Variance at Completion (VAC)
Formula: VAC = BAC - EAC
Interpretation:
VAC > 0: Project is expected to finish under budget.VAC < 0: Project is expected to finish over budget.VAC = 0: Project is expected to finish on budget.
How to Use the EVM Calculator
- Enter Planned Value (PV): Input the budgeted cost of work scheduled to be completed by the current reporting date.
- Enter Earned Value (EV): Input the budgeted cost of the work actually completed by the current reporting date.
- Enter Actual Cost (AC): Input the actual cost incurred for the work completed by the current reporting date.
- Enter Budget at Completion (BAC): Input the total approved budget for the entire project.
- Click "Calculate EVM Metrics": The calculator will instantly display all the key EVM performance and forecasting metrics.
Example Scenario
Imagine a software development project with a total budget (BAC) of 200,000 units. At the current reporting period, the project was scheduled to have completed work worth 100,000 units (PV). However, the team has only completed work valued at 90,000 units (EV), and the actual cost incurred for this work is 95,000 units (AC).
Let's plug these values into the calculator:
- Planned Value (PV): 100000
- Earned Value (EV): 90000
- Actual Cost (AC): 95000
- Budget at Completion (BAC): 200000
Upon calculation, you would get:
- Cost Variance (CV): 90000 – 95000 = -5000 (Over budget)
- Schedule Variance (SV): 90000 – 100000 = -10000 (Behind schedule)
- Cost Performance Index (CPI): 90000 / 95000 = 0.95 (Inefficient)
- Schedule Performance Index (SPI): 90000 / 100000 = 0.90 (Inefficient)
- Estimate at Completion (EAC): 200000 / 0.95 = 210526.32 (Project expected to cost more)
- Estimate to Complete (ETC): 210526.32 – 95000 = 115526.32
- Variance at Completion (VAC): 200000 – 210526.32 = -10526.32 (Project expected to finish over budget)
This example clearly shows that the project is both behind schedule and over budget, and is projected to exceed its total budget if current trends continue.