Earned Value Formulas

Symbol Description Formula Explanation

PV Planned Value How much work should be done
EV Earned Value How much work has actually been done
Negative EV means you are over budget
Positive EV means you are under budget
AC Actual Cost The actual cost incurred or the work that has been done
CP! Cost Perormance !nde" CP! # EV
AC
$e%re getting && dollar's( out o every dollar we s)ent
*P! *chedule Perormance !nde" *P! # EV
PV
$e%re )rogressing at && + o the rate originally )lanned
,AC ,udget At Com)letion The total budget- 'i-e- How much did we budget or the total
)ro.ect&(
EAC Estimate At Com)letion EAC # ,AC
CP!
As o now/ we e")ect the total cost o the )ro.ect 'when
com)leted( to be 0&&
Can also be calculated as1 ,AC2AC3EV
Can also be calculated as1 AC 4 ETC
VAC Variance At Com)letion VAC # ,AC 5
EAC
'Planned vs- Actual( 'i-e- How much over or under budget
do we e")ect to be when the )ro.ect is com)lete&(
ETC Estimate To Com)lete ETC # EAC 5 AC
or
ETC # ,AC 5 EV
CP!
i-e- 6rom this )oint on/ how much more will it cost to inish&
TCP! To7Com)lete Perormance
!nde"
,AC7EV3,AC7
AC
TCP! is the calculated )ro.ection o cost )erormance that
must be achieved on the remaining work-
CV Cost Variance
'Planned vs- Actual(
CV # EV 5 AC Negative CV means over budget 'bad(
Positive CV means under budget 'good(
*V *chedule Variance
'Planned vs- Actual(
*V # EV 5 PV Negative *V means you are behind schedule 'bad(
Positive *V means you are ahead o schedule 'good(
PV Present Value PV # 6V8
'9 4 r(
n
The value today o uture cash lows- 6V # 6uture Value/ r
# !nterest :ate during every time )eriod/ n # number o
time )eriods
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Earned Value Formulas
Symbol Description Formula Explanation
! !nterest Amount '*im)le
!nterest(
! # P 2 r 2 T !nterest Amount # Princi)al 2 !nterest :ate 2 Time Periods
6V 6uture Value 'Com)ound
!nterest(
6V # PV '9 4 r(
n
6uture Value # Present Value 2 '9 4 !nterest :ate(
Number o Time
Periods
:;! :eturn ;n !nvestment :;! # ;!
!A
:eturn ;n !nvestment # ;)erating !ncome
!nvested Assets
*< *tandard <eviation *< # 'P7;(
=
How distant are we rom the mean& 'How uncertain the
estimate is-(
Variance o a Task using
PE:T
Variance # '*<(
>
'Actual vs- )lanned(
PE:T Estimate P 4 ?2@ 4 ;
=
P # Pessimistic Estimate- ; # ;)timistic Estimate- @ #
@ost likely Estimate-
Number o Communication
Channels3Paths
N 'N 5 9(
>
N # Number o lines o communication on the )ro.ect
E")ected @onetary Value P 2 ! P # Probability o a risk event will ha))en
! # !m)act o the risk event i it ha))ens
Estimate Ty)es
;rder o @agnitude
<einitive
Accuracy :ange
7AB+ to 49BB+
7A+ to 49B+
Phases where they usually take )lace
!nitiation
Planning/ ater sco)e statement to obtain unds a))roval
Planning/ ater sco)e deinition '$,*(
*igma Cevels
47 9 sigma
47 > sigma
47 D sigma
47 = sigma
Correctness
=E->= +
FA-?= +
FF-GD +
FF-FF +
Hints:
EV comes irst in every ormula
! it is a variance/ the ormula is EV minus something
! it is an inde"/ the ormula is EV divided by something
! the ormula is related to cost/ use AC
! the ormula is related to schedule/ use PV
Negative is bad/ )ositive is good- Thus/ a cost variance o 5ABB means that you%re 0ABB over budget
,eneit Cost :atio ',C:( reers to )ayback- The higher the number/ the better
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