What is EV (earned value)?

    Earned value is the budgeted value of the work actually completed by a given date. It measures progress in dollars, so different kinds of work can be added together.

    Also written as EV

    EV is calculated by applying measured percent complete to each item's budget. It is only as good as the progress measurement behind it: estimated or optimistic percentages produce optimistic EV.

    Comparing EV with planned value shows schedule performance; comparing it with actual cost shows cost performance.

    Formula

    EV = percent complete × budget, summed across the work

    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). EV is $4.8 million.

    Related terms

    Planned value

    PV

    The budgeted value of the work that was scheduled to be done by a given date.

    Actual cost

    AC

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

    Cost performance index

    CPI

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

    Formula and example

    Schedule performance index

    SPI

    Compares the value of work completed with the value planned.

    Formula and example
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