Earned Value (EV) is a project management metric that helps assess a project’s performance by comparing the planned value of the work to what has actually been earned. It provides valuable insights into cost and schedule performance, allowing project managers to make informed decisions.
Formula: The Earned Value (EV) is calculated by subtracting the Actual Cost (AC) from the Earned Value (EV): ��=��−��EV=PV−AC
How to Use:
- Enter the Planned Value (PV) – the planned cost of the work.
- Enter the Earned Value (EV) – the value of the work completed.
- Enter the Actual Cost (AC) – the actual cost incurred.
- Click the “Calculate” button to get the Earned Value (EV).
Example: Suppose a project has a Planned Value (PV) of $10,000, Earned Value (EV) of $8,000, and Actual Cost (AC) of $9,000. Using the formula: ��=10,000−9,000=1,000EV=10,000−9,000=1,000 The Earned Value (EV) is $1,000.
FAQs:
- Q: What is Earned Value (EV)? A: Earned Value is a project management metric that represents the value of the work completed.
- Q: Why is Earned Value important? A: Earned Value helps assess project performance and make informed decisions.
Conclusion: Calculating Earned Value is crucial for project managers to monitor project performance and make necessary adjustments. Our online calculator simplifies the process, providing instant results for effective project management.