Cost Variance Calculator - Calculator Academy

Reviewed By: Scott Hickam (MBA, Finance)

Enter the total earned value and the actual cost into the calculator to determine the cost variance.

Cost Management Calculators

Cost Variance (CV)

Cost Performance Index (CPI)

Estimate at Completion (EAC)

EVM Summary

Enter any 2 values to calculate the missing variable

Earned Value (EV) ($) Actual Cost ($) Cost Variance ($) Cost Variance as % of Earned Value (%) Cost Status

Enter any 2 values to calculate the missing variable

Earned Value (EV) ($) Actual Cost (AC) ($) Cost Performance Index (CPI) Cost Status

Choose a method and enter required values to calculate EAC

EAC Method Actual Cost (AC) ($) Budget At Completion (BAC) ($) Earned Value (EV) ($) Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate at Completion (EAC) ($) Variance at Completion (VAC) ($) Forecast Status

Enter BAC, PV, EV, and AC for a full earned value summary

Budget At Completion (BAC) ($) Planned Value (PV) ($) Earned Value (EV) ($) Actual Cost (AC) ($) Cost Variance (CV) ($) Schedule Variance (SV) ($) Cost Performance Index (CPI) Schedule Performance Index (SPI) Estimate at Completion (EAC) ($) Variance at Completion (VAC) ($) Project Status Summary

Cost Variance Formula

The following formula is used to calculate a cost variance.

CV = EV - AC

Where CV is the cost variance ($)
EV is the earned value ($)
AC is the actual cost ($)

To calculate the cost variance, subtract the actual cost from the earned value.

Cost Variance Definition

Cost variance (CV) is defined as the difference between earned value (EV)—the budgeted value of the work actually performed—and the actual cost (AC) incurred for that work as of a given date.

Cost Variance Example

How to calculate cost variance?

First, determine the earned value (EV).
Determine the budgeted value of the work actually completed as of the status date (for example, percent complete × BAC, or by summing the budgeted values of completed work packages).
Next, determine the actual cost (AC).
As of the same status date, calculate the total actual cost incurred for the work performed.
Finally, calculate the cost variance (CV).
Subtract the actual cost from the earned value (CV = EV − AC).

FAQ

What is a cost variance?

In Earned Value Management (EVM), cost variance (CV) is the difference between earned value and actual cost (CV = EV − AC). It can be calculated at any point in the project; a positive CV indicates under budget and a negative CV indicates over budget.

What is earned value?

Earned value (EV) is the budgeted cost/value of the work actually performed (often called BCWP). In practice it is commonly determined from percent complete applied to the budget baseline or from completed work packages.