Earned Value (EV)
The budgeted value of the work actually completed to date, found by applying the authorized budget for that scope to the percent complete.
Key Points
- EV represents how much value has been earned in budget terms for the work finished by the status date.
- Basic formula: EV = Percent Complete × Budget for that scope (e.g., a work package budget or BAC for the whole project).
- Used with AC (Actual Cost) and PV (Planned Value) to compute CV, SV, CPI, and SPI.
- EV reflects progress against the baseline; it is not the money spent (AC) nor the amount planned by now (PV).
Example
A project has a BAC of USD 500,000. By the status date, the team has completed 40% of the total scope. EV = 0.40 × 500,000 = USD 200,000. If AC = USD 230,000 and PV = USD 250,000, then CV = EV − AC = −USD 30,000 (over budget) and SV = EV − PV = −USD 50,000 (behind schedule).
PMP Example Question
A work package has an authorized budget of USD 80,000 and is 35% complete at the status date. What is the Earned Value (EV)?
- USD 28,000
- USD 35,000
- USD 80,000
- USD 45,000
Correct Answer: A — EV is USD 28,000
Explanation: EV = Percent Complete × Budget = 0.35 × 80,000 = 28,000.
