# Cost Performance Index Calculator

Introduction: The Cost Performance Index (CPI) is a crucial metric in project management, indicating the efficiency of cost control within a project. It helps project managers assess whether they are staying within budget. This article provides a simple calculator to determine the CPI quickly.

Formula: The Cost Performance Index (CPI) is calculated using the following formula: CPI = Earned Value (EV) / Actual Cost (AC)

How to Use:

1. Input the Earned Value (EV) and Actual Cost (AC) in the respective fields.
2. Click the “Calculate” button to find the Cost Performance Index (CPI).
3. The result will be displayed in the “Cost Performance Index (CPI)” field.

Example: Let’s say your project has an Earned Value (EV) of \$5,000 and Actual Cost (AC) of \$6,000. CPI = 5000 / 6000 = 0.83

FAQs:

1. What is the Cost Performance Index (CPI)?
• The Cost Performance Index (CPI) is a measure of cost efficiency in project management. It assesses how well a project is performing in terms of cost control.
2. What does a CPI value of 1.0 indicate?
• A CPI value of 1.0 indicates that the project is on budget, and costs are exactly as planned.
3. What does a CPI value less than 1.0 mean?
• A CPI value less than 1.0 suggests that the project is over budget, and costs are higher than planned.
4. Is a CPI greater than 1.0 good?
• Yes, a CPI greater than 1.0 indicates that the project is under budget, and costs are lower than planned.
5. Can CPI be negative?
• No, CPI cannot be negative. It always has a positive value.

Conclusion: The Cost Performance Index (CPI) is a valuable metric for project managers to assess cost efficiency. This calculator simplifies CPI calculations, allowing project teams to make informed decisions about cost management. Ensure your project stays on track and within budget with this handy tool.