How to calculate CV and CPI?

CV (Cost Variance) and CPI (Cost Performance Index) are key indicators in project management using the EVM (Earned Value Management) method.

• CV shows the difference between planned and actual costs for the work performed:

  CV = EV - AC
  

  where EV (Earned Value) is the cost of work performed according to the plan, AC (Actual Cost) is the actual expenditure.

• CPI indicates the efficiency of budget usage:

  CPI = EV / AC
  

If CV is positive, the project is spending less than planned. If CPI > 1, the project is cost-efficient; if < 1, there is overspending.

Example: If EV = 100,000 rubles, AC = 90,000 rubles,

CV = 100,000 - 90,000 = 10,000 (savings), CPI = 100,000 / 90,000 ≈ 1.11 (efficient).