Cost Variance (CV) Calculator
Cost Variance (CV) Calculator
| Cost Variance Breakdown | Amount |
|---|---|
| Earned Value (EV) | $95,000 |
| Actual Cost (AC) | $110,000 |
| Cost Variance (CV = EV − AC) | $-15,000 |
| Cost Variance % (CV ÷ EV) | -15.8% |
| Cost Performance Index (EV ÷ AC) | 0.86 |
| Schedule Variance (EV − PV) | $5,000 |
| Schedule Performance Index (EV ÷ PV) | 1.06 |
| Estimate at Completion (BAC ÷ CPI) | $347,368 |
| Estimate to Complete (EAC − AC) | $237,368 |
| Cost Variance | $-15,000 |
| Status | Over budget |
Summary
What Is a Cost Variance Calculator?
A cost variance calculator measures whether a project is on budget by comparing the value of the work actually completed against the cost actually incurred. Cost variance is one of the core metrics of earned value management, and it is computed as the earned value minus the actual cost: a positive variance means the project has delivered more value than it has spent, while a negative variance means it is over budget. Unlike comparing the budget against spending, which can be fooled by a project that is behind schedule and therefore spending less, cost variance ties the spending to the work actually performed, so it isolates cost efficiency from schedule progress. This calculator also derives the cost variance percentage, the cost performance index, the schedule variance and index, and the completion forecasts that tell you where the project is heading.
How It Works
The four core inputs are the earned value, the actual cost, the planned value, and the budget at completion. The cost variance subtracts the actual cost from the earned value: with the default inputs, $95,000 of earned value against $110,000 of actual cost produces a negative variance of $15,000. The cost variance percentage divides the variance by the earned value, expressing the overrun relative to the work performed, and the cost performance index divides the earned value by the actual cost, giving a ratio of 0.86 that shows the project is earning 86 cents for every dollar spent. The schedule variance subtracts the planned value from the earned value, and the schedule performance index divides the earned value by the planned value. The advanced options let you compute the earned value from the physical percentage complete instead, multiplying it by the budget at completion. The estimate at completion divides the budget by the cost performance index, and the estimate to complete subtracts the actual cost from it, forecasting the remaining spend at the current efficiency rate.
Understanding Your Results
The cost variance is the snapshot of today's cost health, and the variance percentage is the normalized version that can be compared across projects of different sizes, with anything worse than negative 10% typically warranting intervention. The cost performance index is the number to track over time, since a consistent downward trend predicts the final cost, and the estimate at completion converts that trend into the projected total, which is the figure to report instead of the original budget once the project is over halfway done. The schedule variance answers a different question, and a project can be simultaneously over budget on cost and behind on schedule, with the two problems compounding. Investigate negative variances promptly, separating the causes into rate increases, scope growth, and inefficiency, because each requires a different corrective action. Update the inputs monthly with actual cost reports to keep the forecast current.
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