What is CV (cost variance)?

    Cost variance is the difference between the value of work completed and what it actually cost. A negative figure is an overrun.

    Also written as CV

    CV is the dollar version of the cost performance index. It is easier to explain in a report, while CPI is easier to compare between projects of different sizes.

    Formula

    CV = EV − AC

    Worked example

    A project has a $12 million budget (BAC). At the reporting date, $5.2 million of work was planned (PV), $4.8 million has been earned (EV) and $4.55 million has been spent (AC). CV = $4.8m − $4.55m = +$250,000, an underrun so far.

    Related terms

    Cost performance index

    CPI

    Shows how much value of work is earned for each dollar spent.

    Formula and example

    Schedule variance

    SV

    The difference between the value of work completed and the value planned.

    Formula and example

    Actual cost

    AC

    The cost actually incurred for the work performed up to a given date.

    PreviousSV (Schedule variance)NextEAC (Estimate at completion)

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