Enter the total earned value and the actual cost incurred into the calculator to determine the cost performance index.

## Cost Performance Index Formula

The following equation is used to calculate the Cost Performance Index.

CPi = EV / AC

• Where CPi is the cost performance index
• EV is the earned value (\$)
• AC is the actual cost incurred (\$)

To calculate the cost performance index, divide the earned value by the actual cost incurred.

## What is a Cost Performance Index?

Definition:

A cost performance index is a ratio of the earned value to the actual cost of a companies business campaign, project, etc.

## How to Calculate Cost Performance Index?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Performance Index.

First, determine the total earned value. With the help of the calculator linked above, the earned value is found to be \$4000.00.

Next, determine the actual cost. The actual cost in this example problem is \$2,000.00.

Finally, calculate the cost performance index using the formula above:

CPi = EV / AC

CPi = \$4000 / \$2000

CPi = 2.00