Earned Value Calculator
What is an Earned Value Calculator?
What is Earned Value?
Earned Value (EV), formerly known as Budgeted Cost of Work Performed (BCWP), quantifies completed physical work in terms of the authorized baseline budget.
Formula
Earned Value (EV) = Budget at Completion (BAC) × Actual Physical Percent Complete (%)
Variables Explanation
- BAC: Total authorized baseline budget ($).
- Actual Physical % Complete: Verified physical work installed on site (0% to 100%).
How to Calculate
1. Input Total Budget at Completion (BAC).
2. Input verified site physical completion percentage.
3. Compute Earned Value (EV) dollar amount.
Worked Example
Project BAC: $1,800,000 bridge pier construction.
Site Quality Survey: Verified 35% physical concrete and rebar installed.
Earned Value (EV) = 1,800,000 × 0.35 = $630,000 (BCWP).
Practical Construction & Project Controls Use
Used to measure true work accomplishment independent of cash flow spending, supporting contractor progress payment certificates.
Understanding the Result
Comparing EV against PV shows schedule performance, while comparing EV against AC shows cost performance.
Limitations & Assumptions
Must be driven by verified physical site measurement rather than financial expenditure or subjective estimates.
Frequently Asked Questions
What is Earned Value in EVM?
EV represents the value of work actually completed expressed in terms of the budget assigned to that work.
What was Earned Value formerly called?
EV was formerly known as BCWP (Budgeted Cost of Work Performed).
Can EV exceed PV?
Yes, if the team completes more physical work than scheduled by the status date, EV will exceed PV.
Can EV exceed BAC?
No, EV cannot exceed BAC unless formal scope variations increase the authorized project budget.
Why is EV better than tracking actual spend alone?
Actual spend only shows money spent; EV proves what physical assets were actually built for that money.