# IMPORTANT FORMULAE & DEFINITION’S #

Earn Value Formula:-

Planned Value(PV):-
PV:- Percent Complete (Schedule) X Task Budget

Earn Value(EV):-
EV:- Percent Complete (Planned) X Task Budget

Schedule Performance Index :-

SPI = EV / PV .
If SPI < 1 , the activity is behind schedule
If SPI = 1 , the activity is on schedule
If SPI > 1 , the activity is ahead of schedule

Cost Variance :-
CV = EV - AC
The project is over - budget if the CV is negative
If the CV is zero , the project will be on the budget
If the CV is positive , it means that the project is under budget

Cost Performance Index : CPI = EV/AC

• If CPI < 1 , the project is over budget
• If CPI = 1 , the project is on budget
• If CPI > 1 , the project is under budget

Budget At Completion : BAC = Project Budget

Estimate At Completion : EAC = BAC/CPI

# IMPORTANT FORMULAE & DEFINITION’S #