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

## 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 ($)

## FAQ

**What is a cost variance?**

A cost variance is the difference between a budgeted cost of a job or work and the actual cost of that job after completion.

**What is earned value?**

Earned value is considered the amount of monetary value budgeted for a certain project.

## Cost Variance Example

How to calculate cost variance?

**First, determine the earned value.**Determine the total budget that is estimated for the project.

**Next, determine the actual cost.**After the project is completed, analyze and calculate the actual total cost.

**Finally, calculate the cost variance.**Subtract the actual cost from the earned value to determine the cost variance.