Earned Value (EV)
The budgeted value of the work actually completed at a point in time.
Earned Value (EV) is the budgeted cost of work physically completed at a given point. Expressed in dollars, it is calculated as EV = BAC × % complete, making it the central variable in Earned Value Management. EV feeds Schedule Variance (SV = EV − PV), Cost Variance (CV = EV − AC), the Schedule Performance Index (SPI = EV / PV), and the Cost Performance Index (CPI = EV / AC). EV measures work done against budget, not against what was actually spent — confusing it with Actual Cost is the common mistake. A project can run EV above AC (under budget) yet EV below PV (behind schedule), so always evaluate both variances together.
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