CAPM/PMP Test Prep
Important Formulas
Earned Value Analysis - EVA compares the performance measurement baseline to the
actual schedule and cost performance.
Combines variables of cost and time
Compares tasks actually completed with original plan
Provides performance indexes to gauge progress
Performed at any point in time
Attributes frequently added to a graph to provide a graphical representation of
data
Budget at Completion – BAC is the sum of all budgets established for the work to
be performed
Planned Value – PV is the authorized budget assigned to scheduled work.
PV is how much work was planned for this point in time
PV is expressed in dollars
PV = Planned % Complete x BAC
Planned % Complete is the amount of time spent compared to estimated
time needed
Earned Value – EV is the measure of work performed expressed in terms of the
budget authorized for that work
Based on the assumption that as work is completed on the project you are
adding value.
EV is expressed in dollars
EV = Actual % Complete x BAC
Actual % Complete is the percentage of work completed relative to total
work to be completed.
Actual Cost – AC is the realized cost incurred for the work performed on an
activity during a specific time period.
AC is simply total amount that has actually been spent up to that point
Cost Variance – CV is the amount of budget surplus of deficit at a given point in
time, expressed as the difference between the earned value and actual cost.
CV is how much actual cost varies from planned cost.
CV = EV – AC
Positive is under budget
Negative is over budget
Schedule Variance – SV is a measure of schedule performance expressed as the
difference between the Earned Value and the Planned Value
SV is how much our schedule differs from plan.
SV = EV – PV
Positive is ahead of schedule
Negative is behind schedule
Cost Performance Index – CPI is a measure of the cost efficiency of budgeted
resources expressed as the ratio of earned value to actual cost.
CPI = EV/AC
Greater than 1, under budget
Less than 1, over budget
Schedule Performance Index – SPI is a measure of schedule efficiency expressed
as the ratio of earned value to planned value.
SPI indicates how fast the project is progressing compared to plan
SPI = EV/PV
Greater than 1, ahead of schedule
Less than 1, behind schedule
Estimate at Completion – EAC is the expected total cost of completing all work
expressed as the sum of the actual cost to date and the estimate to complete.
EAC is the amount we expect the project to cost relative to cost and schedule
EAC = BAC/CPI
Estimate to Complete – ETC is the expected cost to finish all of the remaining
project work from this point to the end of project
ETC = EAC – AC
Variance at Completion – VAC is a projection of the amount of budget deficit or
surplus expressed as the difference between the budget at completion and the estimate
at completion.
VAC us the difference of what we originally budgeted and what we expect to
spend
VAC = BAC – EAC
Positive is currently under budget
Negative is currently over budget
Cumulative CPI – CPIC is the CPI for all EVs and ACs across all periods
CPIC – Evs/ACs (all EVs and ACs across all periods)
Greater than 1, under budget
Less than 1, over budget
To-Complete Performance Index – TCPI is a measure of the cost performance
that is required to be achieved with the remaining resources in order to meet a
specified management goal, expressed as the ratio of the cost to finish the outstanding
work to the remaining budget.
TCPI = (BAC – EV)/(BAC – AC)