Project Management

Formulas for Project Management

These are the formulas used in the Project Management Book of Knowledge (PMBOK).

Present Value (PV) = FV/(1+i)n


Future Value = amount x 1/PV


Variance = Plan – Actual


EV = Earned Value, or budgeted cost of work performed (BCWP), is a percentage of the total budget equal to the percentage of the work actually completed. What is done.

PV (BCWS) = budgeted cost of work scheduled is that portion of the approved cost estimate planned to be spent on the activity during a given period. What should be done.


AC (ACWP) = actual cost of work performed (ACWP), is the total of direct and indirect costs incurred in accomplishing work on the activity during a given period. Cost to achieve what is done.


Cost Variance  CV = EV – AC <0 means Trouble


Schedule Variance  SV = EV – PV <0 means Trouble


Variance At Completion à VAC = BAC – EAC


Cost Performance Index CPI = EV / AC <1 means Trouble


Schedule Performance Index SPI = EV / PV <1 means Trouble


Percent Complete = (EV/BAC) x 100


BAC = total amount of workhours we budget for the work


Estimate At Completion EAC = BAC/CPI = AC + ETC (Forecast of work to complete)

1.  AC + remaining project budget modified by a performance factor (BAC/CPI)

2.  AC + new estimate for all remaining work

3.  AC + remaining budget (BAC)


Estimate To Complete ETC = BAC – EV


Management Reserve (Contingency) MR


Cost Baseline = BAC + MR





September 18, 2008 Posted by | PMP | , , , | Leave a comment