Enter the total project budget and the percentage of the project that is complete into the calculator to determine the earned value.

## Earned Value Formula

The following formula is used to calculate the earned value of a project.

EV = B * C%

• Where EV is the earned value (\$)
• B is the total project budget (\$)
• C% is the percentage of the project that has been complete (%)

## Earned Value Definition

An earned value is defined as the portion of monetary value that a company or business has earned through working on a project that is not yet complete. In other words, the percentage of money earned relative to the same percentage of work that has already been performed.

## How to calculate earned value?

Example Problem #1:

For this first example, we will look at a website design company that was hired to create a website for a candy store.

First, the total project budget needs to be determined. In this case, the design firm quoted a total budget of \$45,000.00.

Next, determine the percentage of the project that has been completed to date. After analyzing the deliverables, it’s determined that 35% of the website has been designed.

Finally, using the formula the earned value can be calculated as:

EV = B*C%

= \$45,000 * .35

= \$15,750.00.

Example Problem #2

In this next example, the same candy store as from example 1 is building an extension for more space.

The total project budget quoted by the contractor is \$37,000.00.

After one month, 74% of the extension is deemed to be complete.

Using the formula, the earned value is calculated as:

EV= B*C%

= \$37,000 *.74

= \$27,380.00