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

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## 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 ($)

## Cost Variance Definition

Cost variance is defined as the difference between an earned value and the actual cost of a good.

## 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.

## FAQ

**What is a cost variance?**

Cost variance is a 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.