Earned Value Calculator
Answers the Question
Is the project progressing as planned?
Calculator for Earned Value
What Is the Earned Value?
Earned value management may have fallen out of favor, but it's a powerful tool for understanding how a project's actual progression compares to that which was predicted as the beginning of a project.
Why Is it Important?
- It's important to know when a project deviates from expectations, because deviations are often indicated a misunderstanding of either the project scope, the team's capabilities, or the necessary budget.
Formula(s) to Calculate Earned Value
- SCHEDULE PERFORMANCE INDEX = EARNED VALUE / PLANNED VALUE
- COST PERFORMANCE INDEX = EARNED VALUE / ACTUAL COST
- SCHEDULE VARIANCE = EARNED VALUE - PLANNED VALUE
- COST VARIANCE = EARNED VALUE - ACTUAL COST
Common Mistakes
- Assuming that original estimations were based on informed estimations. Many projects are given mere guesses as inputs.
- Many teams will be incentivized to take on the least risky portions of a project first, but such actions will cause calculations for the project to appear overly optimistic.