Earned Value Management (EVM) Calculator

Managing a project successfully requires constant monitoring of both time and money. SchoolMyKids presents the Earned Value Management (EVM) Calculator as part of our Business Planning Calculators. It is a powerful tool that helps you track your project's performance by comparing what you planned to achieve, what you actually achieved, and what you spent to get there. 

What is an Earned Value Management Calculator? 

An Earned Value Management Calculator is a digital tool that automatically computes key project performance metrics by analyzing three fundamental data points: what work was scheduled to be completed, what work was actually completed, and how much money was spent. 

EVM originated in the manufacturing industry in the 1960s and was later adopted by the U.S. Department of Defense for large-scale projects. Today, it's used worldwide across various industries, including construction, software development, healthcare, and education. 

Why is this important for students? Understanding EVM is crucial for anyone studying business, engineering, or project management. It's a fundamental skill that employers value highly, and it helps you think analytically about resource management and performance measurement. 

Understanding Key Terms 

Use our Earned Value Management (EVM) calculator to find Earned Value Management, a project management technique for measuring project performance and schedule progress. Learn about the various calculations, metrics and data points used in EVM.

Before using the calculator, you need to understand these essential concepts.

• Planned Value (PV): The budgeted amount for work scheduled to be completed by a specific date. If you planned to complete 60% of your project by today, and your total budget is $100,000, then PV = $60,000. Planned Value (PV) – Authorized budget assigned to scheduled work
• Earned Value (EV): The budgeted amount for work actually completed. If you've actually completed 45% of the work, then EV = $45,000 (45% of $100,000 budget). Earned Value (EV) – Measure of the work performed i.e. authorized budget for that work
• Cost Variance (CV) – Difference between earned value(EV) and actual cost (AC).
• Actual Cost (AC): The total amount of money actually spent on the work completed so far. This includes labor, materials, and all other project expenses. 
• Cost Performance Index (CPI): A ratio that shows cost efficiency. CPI = EV ÷ AC. Cost Performance Index (CPI) – Measure of the efficiency of expenses expended on a project. A CPI of 1.0 means you're on budget, above 1.0 means under budget, and below 1.0 means over budget. 
• Schedule Performance Index (SPI): A ratio that shows schedule efficiency. SPI = EV ÷ PV. An SPI of 1.0 means you're on schedule, above 1.0 means ahead of schedule, and below 1.0 means you're behind schedule. 
• Estimate at Completion (EAC): The forecasted total cost of the project based on current performance. It helps predict what the final project cost will be. 
• Estimate to Complete (ETC) –  Expected cost to accomplish all the remaining project work.
• Schedule Variance (SV) – Measure of schedule performance i.e. difference between the earned value and the planned value. SV = EV – PV

PV = Total Planned Cost * (% Completed Planned)

EV = Total Planned Cost * (% Completed Actual)

CV = EV – AC (Actual Cost)

CPI = EV/AC

SPI = EV/PV

ETC = EAC – AC

ETC = (Total Planned Cost  – EV)/CPI

EAC = AC + ((Total Planned Cost  – EV)/CPI)

How to Use the Earned Value Management Calculator? 

Using this calculator is straightforward, but accuracy in your inputs is crucial for meaningful results. Follow these steps: 

Select Your Currency: Choose the currency you're working with (Dollar, Rupee, Pounds, or Euro). 

Enter Scheduled Progress: Input the percentage of work that should have been completed by now according to your original plan. For example, if you're 6 months into a 12-month project, you might enter 50%. 

Enter Actual Progress: Input the percentage of work that has actually been completed. This should be based on measurable deliverables, not just time spent. 

Enter Total Project Budget: Input the total approved budget for the entire project. This is your baseline for all calculations. 

Enter Actual Costs Incurred: Input the total amount of money spent on the project so far. Include all costs: labor, materials, equipment, overhead, etc. 

Click Calculate: The calculator will instantly compute all EVM metrics and display them in four organized tables. 

Understanding Your Results 

• Planned Value (PV) tells you how much work should have been completed by now, in money terms. 

• Earned Value (EV) shows the value of the work actually finished based on the original budget. 

• Actual Cost (AC) is what you have really spent so far. 

• CPI and SPI help you quickly see if you are over or under budget (CPI) and ahead or behind schedule (SPI). 

• ETC and EAC give you forecasts for how much more money you’ll need and what the final project cost is likely to be. 
• A positive CV is indicative of an under budget
• A negative CV is indicative of an over budget.
• A positive SV is indicative of an ahead of schedule
• A negative SV is indicative of behind schedule.

How Do I Calculate EVM Metrics? 

Example 

• Total Budget: $50,000 

• Scheduled Progress: 70% (should be done by now) 

• Actual Progress: 60% (actually completed) 

• Actual Costs: $35,000 (money spent) 

Step 1: Calculate Planned Value (PV) 

PV = Total Budget × Scheduled Progress 

PV = $50,000 × 70% = $35,000 

Step 2: Calculate Earned Value (EV) 

EV = Total Budget × Actual Progress 

EV = $50,000 × 60% = $30,000 

Step 3: Calculate Cost Performance Index (CPI) 

CPI = EV ÷ AC 

CPI = $30,000 ÷ $35,000 = 0.86 

Interpretation: You're getting $0.86 worth of work for every $1.00 spent (over budget) 

Step 4: Calculate Schedule Performance Index (SPI) 

SPI = EV ÷ PV 

SPI = $30,000 ÷ $35,000 = 0.86 

Interpretation: You're completing work at 86% of the planned rate (behind schedule) 

Step 5: Calculate Cost Variance (CV) 

CV = EV - AC 

CV = $30,000 - $35,000 = -$5,000 

Interpretation: You're $5,000 over budget 

Step 6: Calculate Schedule Variance (SV) 

SV = EV - PV 

SV = $30,000 - $35,000 = -$5,000 

Interpretation: You're $5,000 worth of work behind schedule 

Step 7: Calculate Estimate at Completion (EAC) 

EAC = Total Budget ÷ CPI 

EAC = $50,000 ÷ 0.86 = $58,140 approx 

Interpretation: The project will likely cost $58,140 if current trends continue 

Step 8: Calculate Estimate to Complete (ETC) 

ETC = EAC - AC 

ETC = $58,140 - $35,000 = $23,140 approx 

Interpretation: You need $23,140 more to complete the project 

Common FAQs 

What do CPI and SPI mean?

CPI shows cost efficiency (CPI < 1 means over budget). SPI shows schedule efficiency (SPI < 1 means behind schedule). 

Why are EAC and ETC important?

EAC forecasts the total project cost at completion. ETC estimates the remaining cost needed to finish the project. 

Can I use EVM for any project?

Yes, EVM can be used for any project with a defined budget, schedule, and measurable progress. It is especially useful for large or complex projects. 

SMK's EVM Calculator is a valuable educational tool for learning how to measure, analyze, and predict project performance using industry-standard methods.