PMP EVM Questions (20+ Practice Questions Included)

EVM Graph Questions

The EVM graph questions are one of the easiest questions to answer as you will only need to
understand the meaning of the relative positions of the AC, PV and EV:

AC vs PV: whether the project is under or over budget (AC > PV = over budget; AC <
PV = under budget)
EV vs PV: whether the project is ahead of or behind schedule (EV > PV = ahead of
schedule; EV < PV = behind schedule)

1. With reference to the diagram below, it can be inferred that the project is currently:

1. ahead of schedule and under budget

2. ahead of schedule and over budget
3. behind schedule and under budget
4. behind schedule and over budget
Solution: D
As of today, AC > PV = over budget and EV < PV = behind schedule, so the project is
both behind schedule and over budget.
2. With reference to the diagram below, it can be inferred that the project is currently:

1. ahead of schedule and under budget

2. ahead of schedule and over budget
3. behind schedule and under budget
4. behind schedule and over budget
Solution: C
As of today, AC < PV = under budget and EV < PV = behind schedule, so the project
is behind schedule and under budget.

3. With reference to the diagram below, it can be inferred that the project is currently:

1. ahead of schedule and under budget

2. ahead of schedule and over budget
3. behind schedule and under budget
4. behind schedule and over budget
Solution: B
As of today, AC > PV = over budget and EV > PV = ahead of schedule, so the project
is ahead of schedule and over budget.
Definition of EVM Metrics
These types of questions will test you on your understanding of the meaning of various EVM
metrics:

Planned Value (PV) how much work was scheduled to date

Earned Value (EV) how much work was completed to date

Actual Cost (AC) the amount of money spent so far

Budget at Completion (BAC) the total budget for the project

Estimate at Completion (EAC) the estimated total amount of money needed to be

put into the project based on the information available as today
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Estimate to Completion (ETC) how much more do we need to put into the project to
complete it

Variance at Completion (VAC) the difference between the estimated total cost and
the original budget

Cost Performance Index (CPI) ratio between EV and AC, to reflect whether the
project work is under / on / over budget in relative terms

Schedule Performance Index (SPI) ratio between EV and PV, to reflect whether the
project work is ahead of / on / behind schedule in relative terms

To Complete Performance Index (TCPI) the efficiency needed to finish the project
on budget, it is the ratio between budgeted cost of work remaining and money remaining

1. If a project has a Schedule Performance Index (SPI) of 0.90, this means that:
1. 90% of the work planned to date has been completed
2. 90% of the work of the whole project has been completed
3. 90% of the budget planned to date has been spent
4. 90% of the project budget has been spent
Solution: A
The Schedule Performance Index (SPI) represents the performance of the project in terms
of schedule up to the moment. If it is smaller than 1, less than 100% of the scheduled
work has been completed to date.
2. If a project has a Cost Performance Index (CPI) of 0.90, this means that:
1. 90% of the work planned to date has been completed
2. 90% of the budget planned to date has been spent
3. 111% of the budget planned to date has been spent
4. 111% of the project budget has been spent
Solution: C
The Cost Performance Index (CPI) represents the performance of the project in terms of
budget up to the moment. If it is smaller than 1, the project is currently over budget (i.e.
has spent more than what has been planned).
3. If a project has a To Complete Performance Index (TCPI) of 0.90, this means that:
1. 90% of the work planned up to today has been completed
2. 90% of the budget planned up to today has been spent
3. the project can spend money at a rate 11% higher than planned and still
meet the project budget
4. the project can spend money at a rate 10% lower than planned to meet the project
budget
Solution: C
The To Complete Performance Index (TCPI) is the efficiency needed to finish the project on
budget. If it is smaller than 1, that means that we have more money left on the budget
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than the remaining Planned Value (PV) to achieve. Therefore, in theory, we can spend
more money yet can still finish the project on budget. (However, in reality, it is generally
preferred to finish the project under budget. A TCPI smaller than 1 is a good sign that the
project is going healthy.)
4. A project with both Schedule Performance Index (SPI) and Cost Performance Index (CPI) of
0.80. The project is currently:
1. ahead of schedule and under budget
2. behind schedule and under budget
3. ahead of schedule and over budget
4. behind schedule and over budget
Solution: D
CPI < 1 = over budget and SPI < 1 = behind schedule, so the project is both behind
schedule and over budget.
5. According to EVM, which term below represents the outstanding amount of money
required to finish the project?
1. Planned Value (PV)
2. Earned Value (EV)
3. Estimate to Complete (ETC)
4. Estimate at Completion (EAC)
Solution: C
By definition, Estimate to Completion (ETC) is the amount of money we need to put into
the project from today in order to complete it.
6. According to EVM, which term below represents the budgeted cost of the work to be
completed to date?
1. Planned Value (PV)
2. Earned Value (EV)
3. Estimate to Complete (ETC)
4. Estimate at Completion (EAC)
Solution: A
By definition, Planned Value (PV) is how much value of work was scheduled to achieve to
date.
Simple EVM Calculation Questions
For these types of questions, you will simply need to recall the correct EVM calculation
formulas and correctly substitute the values into the formulas to arrive at the correct answer.
Please do make use of the on-screen calculator / physical calculator provided to do the
calculation even if you are a Maths wizard. It is a pity to lose marks for careless calculation even
if you have selected the correct formula.

Also, most of such simple EVM calculation questions will supply more than enough information
for you to use as a kind of distractor, it is a test of whether you can select the correct formulas as
well as the correct values to substitute into the formulas.

SV = EV PV
CV = EV AC

SPI = EV/PV

CPI = EV/AC

VAC = BAC EAC

1. A project with Earned Value (EV) = $1000, Actual Cost (AC) = $800 and Planned Value (PV)
= $800. What is the Schedule Variance (SV)?
1. $200
2. $0
3. -$100
4. -$200
Solution: A
SV = EV PV
SV = $1000 $800 = $200
Note that the Actual Cost (AC) is not used in the calculation.
2. A project with Earned Value (EV) = $1000, Actual Cost (AC) = $800 and Planned Value (PV)
= $800. What is the Cost Variance (CV)?
1. $200
2. $0
3. -$100
4. -$200
Solution: A
CV = EV AC
CV = $1000 $800 = $200
Note that the Planned Value (PV) is not used in the calculation.
3. A project with Earned Value (EV) = $250, Actual Cost (AC) = $200 and Planned Value (PV)
= $350. What is the Schedule Performance Index (SPI)?
1. 1.25
2. 0.80
3. 0.71
4. 1.40
Solution: C
The formula to be used to calculate SPI is:
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SPI = EV / PV
SPI = $250 / $350 = 0.71
4. A project with Earned Value (EV) = $250, Actual Cost (AC) = $200 and Planned Value (PV)
= $350. What is the Cost Performance Index (CPI)?
1. 1.25
2. 0.80
3. 0.71
4. 1.40
Solution: A
The formula to be used to calculate CPI is:
CPI = EV / AC
CPI = $250 / $200 = 1.25
EVM Estimate At Completion (EAC) Questions
Since there are multiple Estimate at Completion (EAC) formulas, PMP Aspirants should be able to
get clues from the questions on which EAC formula to use:

EAC = BAC/CPI
If we believe the project will continue to spend at the same rate up to now (e.g. the delay
is caused by reasons which is likely to continue)
EAC = AC + (BAC-EV)
If we believe that future expenditures will occur at the original forecasted amount (no
more delays of the same kind in future)

EAC = AC + [(BAC-EV)/(SPI*CPI)]
If we believe that both current cost and current schedule performance will impact future
cost performance

EAC = AC + New Estimate

If we believe the original conditions and assumptions are wrong

1. For the project with original project budget $1000 and both the Cost Performance Index
(CPI) and Schedule Performance Index (SPI) equal 1. Assuming the project will continue to
spend money at the same rate, what is the Estimate At Completion (EAC) of the project?
1. $833
2. $933
3. $1,000
4. $1,033
Solution: C
As the project will continue to spend at the same current rate, the formula to be used
would be:
EAC = BAC/CPI
EAC = $1000 / 1 = $1000
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2. For the project with Earned Value (EV) = $360, Actual Cost (AC) = $400 and both Cost
Performance Index (CPI) and Schedule Performance Index (SPI) equal 0.90. The
original project budget is $1,000. Assuming the remaining work will be impacted
by the current cost performance and current schedule performance, what is the Estimate
At Completion (EAC) of the project?
1. $1,090
2. $1,190
3. $1,290
4. $1,390
Solution: B
As the project will be impacted by the current cost performance and current schedule
performance, the formula would be:
EAC = AC + [(BAC-EV)/(SPI*CPI)]
EAC = $400 + [($1000 $360) / (0.9 * 0.9)] = $1190

3. For a project with Estimate at Completion (EAC) = $120,000 and Cost Performance Index
(CPI) is 0.90. What is the Budget at Completion (BAC)?
1. $108,000
2. $118,000
3. $158,000
4. $208,000
Solution: A
As no information is given on the future performance of the project, we could safely
assume that the project will spend at the same rate. So we will make use of the formula:
EAC = BAC / CPI
$120,000 = BAC / 0.90
BAC = $120,000 * 0.90 = $108,000

Wordy Calculation Questions

Usually these questions will describe you as the project manager of a project which is X months
into the schedule and X% of work has been completed so far along with lots of other information.
The questions will span several lines. Then it will ask you to calculate some EVM metrics based
on the information provided.
Also, the questions will usually not make use of EVM terms (like Planned Value, Actual Cost,
Earned Value, etc.) but you can easily infer those values from the descriptions provided. The key
to answering wordy questions correctly is to read the questions carefully and extract useful
information from the questions and write down PV, EV, AC, etc. while you are reading the
questions.
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1. You are the project manager of a housing project in which a total of 10 houses are to be
build over 10 months (1 house per month). The total budget for the housing project is
$1,000,000. The project is now at the end of the 6th month with 5 houses built and
$500,000 spent. The project is behind schedule owing to a work strike for a month. The
Cost Performance Index (CPI) for the project is:
1. 1.0
2. 0.9
3. 1.1
4. 1.2
Solution: A
The formula to be used to calculate CPI is:
CPI = EV / AC
CPI = $500,000 / $500,000 = 1.0

2. You are the project manager of a road paving project. A total of 10km of road is to be
paved over a 5-month period. The total budget for the project is $10,000. The project is
now at the end of the 3rd month with 8km of road paved and $8,000 spent. The
Schedule Performance Index (SPI) for the project is:
1. 0.78
2. 0.98
3. 1.20
4. 1.33
Solution: D
Since the road is assumed to be paved linearly, i.e. 2km of road per month. At the end of
3rd month, the PV should be $6,000 (for 6km of road). The formula to be used to calculate
SPI is:
SPI = EV / PV
CPI = $8,000 / $6,000 = 1.33

Complicated EVM Calculation Questions

These types of questions will required PMP Aspirants to make use of more than 1 PMP EVM
formulas. These questions are considered the most difficult of all PMP EVM questions. Most PMP
Aspirants not coming from a Science / Maths background would not even know which EVM
formulas to pick, let alone arriving at the correct answer. But the good news is that these
questions would seldom appear on the PMP Exam (for your reference: I got none in
my PMP Exam).
1. For a project with Earned Value (EV) = $300, Actual Cost (AC) = $350 and Planned Value
(PV) = $400. The overall project budget is $1,000. Assume that you will continue to spend
at the same rate as you are currently spending. What is the Variance At Completion (VAC)?
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1. -$150
2. $150
3. -$167
4. $167
Solution: C
As the project will continue to spend at the same current rate, the formula to be used
would be:
VAC = BAC EAC
EAC = BAC/CPI
CPI = EV/AC
VAC = BAC BAC/(EV/AC) =$1000 $1000/($300/$350) = -$167

2. For the project with Earned Value (EV) = $300, Actual Cost (AC) = $250 and Planned Value
(PV) = $300. The original project budget is $1000. Assuming the project will continue to
spend money at the same rate, what is the Estimate At Completion (EAC) of the project?
1. $833
2. $933
3. $1,000
4. $1,033
Solution: A
As the project will continue to spend at the same current rate, the formula to be used
would be:
EAC = BAC/CPI
CPI = EV/AC
EAC = BAC/(EV/AC) = $1000 / ($300/$250) = $833

3. For the project with Earned Value (EV) = $350, Actual Cost (AC) = $300 and Planned Value
(PV) = $400. The original project budget is $1,000. Assuming the remaining work will be
impacted by the current cost performance and current schedule performance, what is the
Estimate At Completion (EAC) of the project?
1. $837
2. $937
3. $987
4. $1,280
Solution: B
As the project will be impacted by the current cost performance and current schedule
performance, the formula would be:
EAC = AC + [(BAC-EV)/(SPI*CPI)]
SPI = EV / PV = $350 / $400 = 0.875
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CPI = EV / AC = $350 / $300 = 1.167

EAC = BAC/(EV/AC) = $300 + [($1000 $350) / (0.875 * 1.167)] = $937

Further Reading

PM Exam Formulas Study Guide created by Cornelius Fitchner (the same author of
the acclaimed online PMP Exam Prep course which I used to clear my PMP exam the PM
PrepCast).

Source: http://edward-designer.com/web/pmp-evm-sample-questions/
PMP Earned Value Management (EVM) Calculation Explained in Simple Terms
A simplified discussion of the EVM calculation just enough for the PMP Exam
by Edward Chung December 3, 2015

Summary: Among all the PMP Exam formulas calculation questions, the Earned Value
Management (EVM) questions are usually considered the most important ones as candidates will
need to solve quite a few of them in the real PMP Exam I got around 5+ EVM questions on my
PMP Exam paper and I am quite confident that I could get them all correct.
Introduction
The PMP Exam tests your understanding of project management as a whole.
To arrive at the correct answers for EVM questions, all you need to do in the PMP Exam is to:
1. Read the question carefully
2. Select the correct formula to apply
3. Calculate the answer (this is often the easiest part! You can get most answers without the
use of calculators)
PMP EVM Concepts Explained With Examples
Earned value management (EVM) is used to assess the schedule and cost performance of
a project with EVM, the project manager will know exactly whether the project is:

ahead of / on / behind schedule

under / on / over budget

Earned value management (EVM) bases on the concept that i) work completed will deliver value
and ii) the value delivered equals the budget put into the work. The value gained can be
assessed along the progression of the project. In reality, earned value management is very
complicated as value usually cannot simply be assessed based on the percentage of completion.
Good news here: PMI has simplified PMP EVM calculation to very ideal situations! You will just
need to know the following to get your PMP EVM questions correct.

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Basic EVM Formulas

To speak more clearly how the value is to be managed, a number of terms are defined in EVM
(explained with the example of building 10 houses each has a value of US$1000 expected to be
completed in 10 weeks in proportion):

Planned Value (PV) The budgeted value of the work completed so far at a
specific date
example: at end of week 4, altogether 4 houses should be completed, the PV is US$4000
Earned Value (EV) The actual value of the work completed so far at a specific date
(refer to the Notes on Earned Value Measurement section below)
example: by end of week 4, only 3 houses are completed, the EV is US$3000
Actual Cost (AC) The total expenditure for the work so far at a specific date
example: by end of week 4, US$4000 was spend, the AC is US$4000

EVM is based on monitoring these three aspects along the project in order to reveal the health of
the project with the following indices:

Schedule Variance (SV) difference between PV and EV, to tell whether the project
work is ahead of / on / behind schedule
o SV = EV PV
If the project is behind schedule the SV will be negative (i.e. achieved less than
what planned)
If the project is on schedule the SV = 0
If the project is ahead of schedule the SV will be positive (i.e. achieved more than
what planned)
o

example: by end of week 4, the SV = EV PV = US$3000 US$4000 = -US$1000

(behind schedule)

Schedule Performance Index (SPI) ratio between EV and PV, to reflect whether the
project work is ahead of / on / behind schedule in relative terms
o

SPI = EV/PV
If the project is behind schedule the SPI < 1 (i.e. achieved less than what planned)
If the project is on schedule the SPI = 1
If the project is ahead of schedule the SPI > 1 (i.e. achieved more than what
planned)

example: by end of week 4, the SPI = EV/PV = US$3000/US$4000 = 0.75 (behind

schedule)

Cost Variance (CV) difference between PV and AC, to tell whether the project work is
under / on / over budget
o

CV = EV AC
If the project is over budget the CV will be negative (i.e. achieved less than spent)
If the project is on budget the CV = 0
If the project is under budget the CV will be positive (i.e. achieved more than spent)

example: by end of week 4, the CV = EV AC = US$3000 US$4000 = -US$1000

(over budget)

Cost Performance Index (CPI) ratio between EV and AC, to reflect whether the
project work is under / on / over budget in relative terms
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CPI = EV/AC
If the project is over budget the CPI < 1 (i.e. achieved less than spent)
If the project is on budget the CPI = 1
If the project is under budget the CPI > 1 (i.e. achieved more than spent)

example: by end of week 4, the CPI = EV/AC = US$3000/US$4000 = 0.75 (over

budget)

Note both SV and SPI / CV and CPI give similar information on schedule / budget but the indices
will give more insights into the actual performance with a meaning comparison.
From my experience, the most difficult process of solving EVM problems for PMP Exams is to
identify the PV, EV and AC from the wordy calculation questions. Then you will just have to recall
the correct formula to substitute the values into to get the answer the question will usually ask
you directly about the actual indices to get.
Advanced EVM Formulas

Budget at Completion (BAC) also known as the project/work budget, that is the total
amount of money originally planned to spend on the project/work
o example: the BAC for the housing project = US$1000 x 10 = US$10000

Estimate at completion (EAC) as the project goes on, there may be variations into
the actual final cost from the planned final cost, EAC is a way to project/estimate the
planned cost at project finish based on the currently available data
o

The following formulas can be used to calculate EAC based on which information
and conditions given in the question:

EAC = BAC/CPI
If we believe the project will continue to spend at the same rate up to now

The delay is caused by reasons which is likely to continue (e.g. labour

with less skilled than expected)

example: the EAC for the housing project = US$10000 / 0.75 =

US$13333

EAC = AC + (BAC-EV)
If we believe that future expenditures will occur at the original forecasted
amount (no more delays of the same kind in future)

The delay might be caused by some unforeseen reasons (e.g. typhoon)

which is not likely to happen again

example: the EAC for the housing project = US$4000 + (US$10000

$3000) = US$11000

EAC = AC + [(BAC-EV)/(SPI*CPI)]
If we believe that both current cost and current schedule performance will
impact future cost performance

The performance of the project will continue with sub-prime standards

(over budget and behind schedule)

This formula is less likely to be used for the PMP Exam

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EAC = AC + New Estimate

If we believe the original conditions and assumptions are wrong

example: the EAC for the housing project = US$4000 + [(US$10000

$3000)/(0.75*0.75)] = US$16444

Will not be tested as there is nothing to calculate

Variance at Completion (VAC) the variance at completion, i.e. the difference

between the new estimate at completion and original planned value
o

VAC = BAC EAC

If we forecast the project will be over budget, VAC will be negative
If we forecast the project will be under budget, VAC will be positive

example: the VAC for the housing project = US$10000 US$13333 (just take the
1st EAC as an example only) = -US$3333

To Complete Performance Index (TCPI) the efficiency needed to finish the project
on budget, it is the ratio between budgeted cost of work remaining and money remaining
o

TCPI = (BAC-EV)/(BAC-AC)
Use this equation if the project is required to finish within BAC

example: the TCPI for the housing project at end of week 4 = (US$10000
US$3000) / (US$10000 US$4000) = 1.67

TCPI = (BAC-EV)/(EAC-AC)
Use this equation if the project is required to finish within new EAC

example: the TCPI for the housing project at end of week 4 with new EAC
US$13333 = (US$10000 US$3000) / (US$13333 US$4000) = 0.75

Notes on Earned Value Measurement

The following will discuss how earned value is measured for project and work, from simple
physical measurements, percentage complete to weighted milestones. Since the PMP EVM
questions cannot describe a lot of information, the part on earned value measurements will
normally be based on simplified situations like physical measurements or percentage complete.
It is likely that you will not be tested on the more difficult ways of measuring earned values.
These are included here for your reference only.

Physical Measurement directly transform the physical measurement of the amount of

work completed into EV
o example: building 10 houses each has a value of US$1000 expected to be
completed in 10 weeks in proportion, earned value of 3 house built is US$3000

Percentage Complete directly transform the percentage of the amount of work

completed into EV
o

example: building 10 houses each has a value of US$1000 expected to be

completed in 10 weeks in proportion, earned value of 30% complete is US$3000

Weighted Milestone a EV is assigned to the 100% completion of each milestone of

the work packages with prior agreement with stakeholders
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Fixed Formula a specific percentage of the overall PV is assigned to the start of a work
package and the remaining assigned upon completion; these must be agreed upon in the
project management plan
o

0/100 rule: 0% EV at the activity begins; 100% EV upon completion

20/80 rule: 20% EV at the activity begins; 80% EV upon completion.

50/50 rule: 50% EV at the activity begins; 50% EV upon completion

EVM Charts
In common practices, EVM will also involve plotting the values on a graph in order to help
stakeholders concerned to visualize the progress and the health of the project. More often than
not you will find the EV, AC and PV plotted on a graph and you will be asked on the interpretation
of the graph.
Insights to be gained from the chart:

If EV line is below PV, the project is behind schedule; if EV is above PV, the project is ahead
of schedule.
If AC line is below PV, the project is within budget; if AC is above PV, the project is over
budget.

Below is an example of the EVM charts you would be likely to encounter in your PMP Exam
solid lines represent actual figures while dotted lines represent forecasted figures:

Judging from the chart above, we can infer that the project is currently
over budget and behind schedule.
PMP Earned Value Management (EVM) Formulas in PMBOK Guide At a Glance

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12 PMP EVM Formulas

Name
(Abbreviation)

Schedule
Performance Index
(SPI)

Formula

Interpretation

< 1 behind
schedule
= 1 on schedule
EV = Earned Value > 1 ahead of
PV = Planned Value schedule

SPI = EV/PV

<1
=1
>1
Cost Performance
Index (CPI)

Schedule Variance
(SV)

CPI = EV/AC

sometimes the term

EV = Earned Value cumulative CPI
AC = Actual Cost would be shown,
which actually is the
CPI up to that
moment

< 0 Behind
schedule
= 0 On schedule
EV = Earned Value > 0 Ahead of
PV = Planned Value schedule

SV = EV PV

CV = EV AC
Cost Variance (CV)

Estimate at
Completion (EAC) if
original is flawed

Estimate at
Completion (EAC) if
BAC remains the

Over budget
On budget
Under budget

<0
=0
EV = Earned Value > 0
AC = Actual Cost

Over budget
On budget
Within budget

if the original
estimate is based on
EAC = AC + New ETC
wrong
AC = Actual Cost data/assumptions or
New ETC = New Estimate to Completion circumstances have
changed
the variance is caused
by a one-time event
AC = Actual Cost and is not likely to

EAC = AC + BAC EV

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12 PMP EVM Formulas

Name
(Abbreviation)
same

Estimate at
Completion (EAC) if
CPI remains the
same

Estimate at
Completion (EAC) if
substandard
performance
continues

Formula

Interpretation

BAC = Budget at completion happen again

EV = Earned Value
if the CPI would
remain the same till
end of project, i.e. the
BAC = Budget at completion original estimation is
CPI = Cost performance index not accurate

EAC = BAC/CPI

EAC = AC + [(BAC -EV)/(CPI*SPI)]

AC = Actual Cost
BAC = Budget at completion
EV = Earned Value
CPI = Cost Performance Index
SPI = Schedule Performance Index

use when the

question gives all the
values (AC, BAC, EV,
CPI and SPI),
otherwise, this
formula is not likely
to be used

TCPI = (BAC EV)/

(BAC AC)

To-Complete
Performance Index
(TCPI)

BAC = Budget at completion

EV = Earned value
AC = Actual Cost < 1
=1
TCPI = Remaining Work > 1

Under budget
On budget
Over budget

/Remaining Funds
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index
Estimate to
Completion

Variance at
Completion

ETC = EAC -AC

EAC = Estimate at Completion
AC = Actual Cost

VAC = BAC EAC

<0
=0
BAC = Budget at completion > 0
EAC = Estimate at Completion

Over budget
On budget
Under budget

Additional Resources
After understanding the above and memorizing the EVM formulas, PMP aspirants should be able
to answer PMP EVM calculation questions. Now it is time to test your understanding of EVM
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calculation by going through some practice questions at the article tips and skills on how to
answer all PMP EVM questions correctly 20+ practice questions on PMP EVM are also included
to help you hone your EVM skills and all questions are fully explained.

Source: http://edward-designer.com/web/pmp-earned-value-questions-explanined/

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