Likelihood × impact drives the response
Earned Value: Measuring Progress in Money
PV, EV, AC and the four formulas that tell you whether the project is genuinely on track.
On this page
Percent-complete reporting is self-assessed and therefore useless. Earned value replaces opinion with a single currency for scope, schedule and cost.
| Term | Meaning |
|---|---|
| PV — Planned Value | Budgeted cost of work scheduled to date |
| EV — Earned Value | Budgeted cost of work actually completed |
| AC — Actual Cost | What has really been spent |
| BAC — Budget at Completion | Total approved budget |
The four numbers that matter
- Schedule Variance = EV − PV. Negative means behind.
- Cost Variance = EV − AC. Negative means over budget.
- SPI = EV ÷ PV. Below 1.0 means behind.
- CPI = EV ÷ AC. Below 1.0 means every pound buys less than planned.
Related PMI standards & templates
External resources on pmi.org — links open in a new tab. Some require PMI membership.
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