EVM Glossary of Terms: Complete Reference Guide

This glossary defines every term used in Earned Value Management (EVM) as defined in the PMBOK® Guide 6th Edition. Use this as a reference when calculating EVM metrics or studying for the PMP® exam.

Inputs (Baseline Metrics)

BAC — Budget at Completion

The total authorized budget for the project. Established at the cost baseline during planning and represents the sum of all work package budgets. BAC is fixed and does not change unless a formal change request is approved. Formula: BAC = Σ(all work package budgets).

PV — Planned Value (formerly BCWS: Budgeted Cost of Work Scheduled)

The authorized budget assigned to scheduled work. PV represents how much work was planned to be done by a given point in time, measured in budget terms. PV at project completion equals BAC. Formula: PV = % planned complete × BAC.

EV — Earned Value (formerly BCWP: Budgeted Cost of Work Performed)

The measure of work performed expressed in terms of the budget authorized for that work. EV is the "heart" of EVM — it is what you have earned from your budget by completing actual work. Formula: EV = % actual complete × BAC. Note: EV can never exceed BAC.

AC — Actual Cost (formerly ACWP: Actual Cost of Work Performed)

The realized cost incurred for work performed on an activity during a specific time period. AC includes all costs (labor, materials, overhead) actually spent on the work corresponding to EV. AC can theoretically exceed BAC (indicating a severe cost overrun).

Variance Metrics

CV — Cost Variance

The amount of budget deficit or surplus at a given point in time, expressed as the difference between earned value and actual cost. Positive CV = under budget; negative CV = over budget. Formula: CV = EV − AC.

SV — Schedule Variance

The amount by which the project is ahead of or behind the planned delivery date, expressed in monetary terms. Positive SV = ahead of schedule; negative SV = behind schedule. Note: SV converges to zero at project end regardless of actual schedule delay. Formula: SV = EV − PV.

CV% — Cost Variance Percentage

The cost variance expressed as a percentage of earned value. Useful for comparing cost performance across projects of different sizes. Formula: CV% = (CV ÷ EV) × 100.

SV% — Schedule Variance Percentage

The schedule variance expressed as a percentage of planned value. Formula: SV% = (SV ÷ PV) × 100.

VAC — Variance at Completion

The projection of the amount of budget deficit or surplus, expressed as the difference between the BAC and the EAC. Positive VAC = projected to finish under budget; negative VAC = projected to overrun. Formula: VAC = BAC − EAC.

Performance Indices

CPI — Cost Performance Index

A measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. CPI > 1.0 = cost efficient; CPI < 1.0 = cost overrun. CPI is the primary input to EAC forecasting and is considered a strong predictor of final project cost. Formula: CPI = EV ÷ AC.

SPI — Schedule Performance Index

A measure of schedule efficiency expressed as a ratio of earned value to planned value. SPI > 1.0 = ahead of schedule; SPI < 1.0 = behind schedule. Note: SPI is a dollar-based (not time-based) metric and always equals 1.0 at project completion regardless of delays. Formula: SPI = EV ÷ PV.

TCPI — To-Complete Performance Index

A measure of the cost performance that must be achieved with the remaining resources to meet a specified management goal. There are two TCPI formulas: TCPI(BAC) targets the original budget; TCPI(EAC) targets a revised budget. TCPI > 1.1 is generally considered unrealistic without significant corrective action. Formulas: TCPI(BAC) = (BAC − EV) ÷ (BAC − AC); TCPI(EAC) = (BAC − EV) ÷ (EAC − AC).

Forecast Metrics

EAC — Estimate at Completion

The expected total cost of completing all the work, expressed as the sum of actual cost to date plus the estimate to complete. EAC is a dynamic forecast that changes as the project progresses. PMBOK defines four EAC formulas depending on assumptions about future performance.

ETC — Estimate to Complete

The expected cost needed to finish all the remaining project work. ETC is calculated as EAC minus AC, representing only the future spending required. A bottom-up ETC (re-estimating all remaining work) is more accurate than formula-based ETC. Formula: ETC = EAC − AC.

PCIB — Percent Complete (cost-based)

The percentage of work completed as measured by earned value relative to budget at completion. Distinct from physical percent complete. Formula: PCIB = (EV ÷ BAC) × 100.

Old ANSI/EIA 748 Terminology (Still Tested on PMP)

Supporting Concepts

PMB — Performance Measurement Baseline

The time-phased budget plan against which project execution is compared for management control. The PMB is the integrated cost and schedule baseline used to generate PV.

WBS — Work Breakdown Structure

A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. The WBS is the organizational backbone of an EVM system.

Control Account

A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement.