Finance – Earned value formula sheet

Earned value formula sheet

Earned value formula sheet

What do you need on the your earned value formula sheet?

Earned value management is an important component of managing any project, especially for projects in industries like construction and oil and gas, where projects stem for long periods of time and have hundreds of interdependent pieces, and internal and external forces.

Getting your earned value calculations right and tracking earned value accurately gives project managers and companies more insights into performance as the project progress, and more power to effect the project on a cost and schedule basis.

The reason for seeking out and using an earned value formula sheet is to understand and use all of the critical earned value formulas.

Calculating the different components of earned value requires a number of different formulas, which are used to paint a full and comprehensive picture of project health.

Almost all projects can benefit from most of the formulas on this earned value formula sheet, while others will just reference a few.

The earned value formula sheet

Planned value (PV):

PV = % of project completed (planned) x Budget at completion (BAC)

Earned value (EV):

EV = % of project completed (actual) x Budget at completion (BAC)

Actual cost (AC):

AC = The actual costs of the project to date

Schedule variance (SV):

SV = Earned value - Planned value

Cost variance (CV):

CV = Earned value - Actual cost

Schedule performance index (SPI):

SPI = Earned value / Planned value

Cost performance index (CPI):

CPI = Earned value / Actual cost

Budget at completion (BAC):

BAC = The total planned budget for the project (or phase of works)

Estimate at completion (EAC):

There are a few different ways to approach and calculate EAC, which you can read about here.

Variance at completion (VAC):

VAC = BAC - EAC

Estimate to complete (ETC):

ETC = EAC - AC or new estimate

To complete performance index (TCPI):

TCPI = (BAC – EV) / (BAC – AC) or (BAC – EV) / (EAC – AC)

If you would like more detail about these formulas, as well as some examples of how they are used to actually calculate EV, click here.

How and when to use an earned value formula sheet

How often you need to reference an earned value formula sheet will depend on how you calculate and use earned value.

For some companies, their earned value formulas are embedded into the excel sheets they use to calculate earned value, for other companies, their earned value calculations are automated and derived straight from dedicated software systems.

If you calculate earned value manually, then you will likely need to reference this or another earned value formula sheet on a regular basis.

People in 100+ countries use this software to better track and calculate earned value.

Sitemate users

Sitemate is flexible project managament software which enables companies in the industries to streamline their projects, teams and forms - their way.

About Lance Hodgson

Lance is the Head of Marketing & Growth at Sitemate. His aim is to bring awareness to a brighter future for the heavy industries where people and companies work smarter.

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