EVM - CPI, SPI, Cost Variance
and Schedule Variance

5. Cost Performance Index (CPI) - Cost Performance Index shows you the utilization
of your resources in the project. It reflects the ratio of actual work done against the
actual cost paid for it. The CPI is calculated as -

CPI = Earned Value (EV) / Actual Cost (AC)

CPI < 1 - Over Budget.
CPI > 1 - Under Budget.

6. Cost Variance (CV) - Cost Variance tells you how much over or under budget your
project is running. It is the difference between the Earned Value (EV) and the Actual
Cost (AC) you spent for the work performed. The Cost Variance (CV) is calculated as -

CV = Earned Value (EV) - Actual Cost (AC)

CV < 0 (Negative Value) - Over Budget.
CV > 0 (Positive Value) - Under Budget.

7. Schedule Performance Index (SPI) - Schedule Performance Index shows you the
utilization of the time in the project. It also indicates you how much a project is
ahead or behind schedule. The SPI is calculated as -

8. Schedule Variance (SV) - Schedule Variance tells you how much ahead or behind
schedule your project is running. It is the difference between the Earned Value (EV)
and the Planned Value (PV). The Schedule Variance (SV) is calculated as -

Below chart gives you the upper, lower and average value limit for CPI, SPI, CV and
SV. Here it gives you both Organizational Baseline Controls Limits and the Project
Specifics Limits as an example: