Enter the total project budget and the percentage of the project that is complete into the calculator to determine the earned value.
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Earned Value Formula
The following formula is used to calculate the earned value of a project.
- Where EV is the earned value ($)
- B is the total project budget ($)
- C% is the budget-weighted percentage of work completed (%)
To calculate the earned value, multiply the project budget by the percentage of the project that has been completed.
Earned Value Definition
Earned value is the budgeted cost of work performed, not revenue, profit or cash received. Completion must reflect budget-weighted progress for the same scope and reporting date. See the Department of Energy EVM definitions and DOE EVMS Gold Card.
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 follows:
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 follows:
EV= B*C%
= $37,000 *.74
= $27,380.00
