# All PMP Cost Management Formulas (Earned Value Management – CPI, SPI, CV, SV, EAC, ETC, TCPI, VAC) ## Schedule Performance Index

SPI = EV/PV
EV = Earned Value
PV = Planned Value

< 1 behind schedule
= 1 on schedule
> 1 ahead of schedule

## Cost Performance Index

CPI = EV/AC
EV = Earned Value
AC = Actual Cost

< 1 Over budget
= 1 On budget
> 1 Under budget

## Schedule Variance

SV = EV-PV
EV = Earned Value
PV = Planned Value

< 0 Behind schedule
= 0 On schedule
> 0 Ahead of schedule

## Cost Variance

CV = EV-AC
EV = Earned Value
AC = Actual Cost

< 0 Over budget
= 0 On budget
> 0 Within budget

## Estimate At Completion, if original is flawed

EAC = AC+ETC
AC = Actual Cost
ETC = Estimate to Completion

if the original estimate is based on wrong data/assumptions or circumstances have changed ETC mentioned here is a ‘new ETC’

## Estimate At Completion, if BAC remains the same

EAC = AC+BAC-EV
AC = Actual Cost
BAC = Budget at completion
EV = Earned Value

the variance is caused by a onetime event and is not likely to happen again

## Estimate At Completion, if CPI remains the same

EAC = BAC/CPI
BAC = Budget at completion
CPI = Cost performance index

if the CPI would remain the same till end of project, i.e. the original estimation is not accurate

## Estimate At Completion, if substandard performance continues

EAC = AC+(BAC-EV)/(CPI*SPI)
AC = Actual Cost
BAC = Budget at completion
EV = Earned Value
CPI = Cost Performance Index
SPI = Schedule Performance Index

use when the question gives all the values (AC, BAC, EV, CPI and SPI), otherwise, this formula is not likely to be used

## To Complete Performance Index (TCPI)

TCPI = (BAC-EV)/ (BAC-AC)
BAC = Budget at completion
EV = Earned value
AC = Actual Cost

TCPI is basically – Remaining Work / Remaining Funds

< 1 Under budget
= 1 On budget
< 1 Over budget

If EAC is available use EAC-AC instead of BAC-AC

## Estimate To Complete (ETC)

ETC = EAC-AC
EAC = Estimate at Completion
AC = Actual Cost

## Variance At Completion (VAC)

VAC = BAC-EAC
BAC = Budget at completion
EAC = Estimate at Completion

## Inference

For variances like SV, CV and VAC – negative is bad, positive is good

For indices like CPI and SPI – less than 1 is bad, more than 1 is good. However, the opposite is true for TCPI

## Diagrammatic Representation

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