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Budget at Completion Calculator · April 2026 · 6 min read

CPI vs SPI Explained: Cost vs Schedule Performance in EVM

The Cost Performance Index (CPI) and Schedule Performance Index (SPI) are the two most-watched metrics in Earned Value Management. Both are efficiency ratios that use 1.0 as the baseline — but they measure completely different things, and a project manager who misreads them can draw badly wrong conclusions.

This article explains both indexes in depth: how they are calculated, what their values mean, how they interact, and what to do when they diverge.

The Formulas at a Glance

IndexFormulaMeasuresGood value
CPIEV ÷ ACCost efficiency> 1.0
SPIEV ÷ PVSchedule efficiency> 1.0

CPI: Cost Performance Index

CPI = EV ÷ AC

CPI measures how much budgeted work value is being delivered per dollar spent. A CPI of 0.85 means that for every $1.00 actually spent, only $0.85 worth of planned work has been completed — an 18% cost overrun rate.

CPI Interpretation Guide

CPI ValueStatusWhat it means
> 1.0Under budgetDelivering more value than each dollar costs
= 1.0On budgetDelivering exactly as planned per dollar
0.9 – 0.99Slight overrunMonitor closely; corrective action may be needed
< 0.9Over budgetSignificant cost problem; management action required

Key research finding: Studies show that once CPI drops below 0.9 after the 20% project completion point, it very rarely recovers. Early CPI values are strong predictors of final project cost performance.

SPI: Schedule Performance Index

SPI = EV ÷ PV

SPI measures how efficiently the project is progressing through its planned work. An SPI of 0.80 means the team is completing only 80% of the work that was scheduled to be done by this point — the project is running 20% behind its timeline.

SPI Interpretation Guide

SPI ValueStatusWhat it means
> 1.0Ahead of scheduleMore work done than was planned for this period
= 1.0On scheduleExactly on the planned timeline
0.9 – 0.99Slight delayMinor slippage; may self-correct
< 0.9Behind scheduleSignificant delay; may impact deadline or cost

Important SPI limitation: SPI is calculated in dollar terms (EV/PV), not in calendar days. At the end of a project, SPI always equals 1.0 (since total EV = total PV = BAC when complete) — regardless of how late the project finished. This makes SPI unreliable for measuring schedule delays near project completion. For time-based scheduling analysis, use Earned Schedule (ES) methods instead.

The 4 CPI/SPI Combination Scenarios

CPI > 1, SPI > 1

Under budget AND ahead of schedule. The ideal scenario. Investigate why — understand what's working so you can repeat it.

CPI > 1, SPI < 1

Under budget BUT behind schedule. Spending less than planned, but not completing work fast enough. May need to add resources to accelerate.

CPI < 1, SPI > 1

Over budget BUT ahead of schedule. Completing work faster, but at higher cost. Evaluate if the schedule gains justify the spending.

CPI < 1, SPI < 1

Over budget AND behind schedule. The worst case. Immediate management intervention required. Consider scope reduction or baseline revision.

Worked Example

A software development project has: BAC = $300,000, PV = $150,000, EV = $120,000, AC = $140,000

CPI = EV ÷ AC = 120,000 ÷ 140,000 = 0.857
SPI = EV ÷ PV = 120,000 ÷ 150,000 = 0.800

This project is both over budget (CPI 0.857 = 16.7% cost overrun) and behind schedule (SPI 0.800 = 20% schedule slippage). The EAC factoring in both indices would be:

EAC = AC + [(BAC − EV) ÷ (CPI × SPI)] = 140,000 + [180,000 ÷ (0.857 × 0.800)] = $402,697

CPI vs SPI: Which One Matters More?

Both matter — but in different contexts:

Common Misconceptions

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