Cost Variance Calculator
Advanced cost variance analysis with CPI metrics and professional earned value management
EV - AC: Measure cost performance variance
Cost Performance Index for efficiency tracking
Estimate at Completion calculations
Comprehensive budget variance monitoring
Cost Performance Metrics
Budgeted cost of work scheduled
Budgeted cost of work performed
Actual cost of work performed
Total planned budget for the project
Understanding Cost Variance Analysis
Key Metrics Explained
Cost Variance (CV)
Measures the difference between earned value and actual cost. Positive CV indicates under budget, while negative CV indicates over budget. Essential for cost control and budget management.
Cost Performance Index (CPI)
Ratio of earned value to actual cost. CPI > 1 indicates under budget, CPI = 1 indicates on budget, and CPI < 1 indicates over budget. Critical for cost efficiency measurement.
Estimate at Completion (EAC)
Forecast of the total project cost based on current performance. Multiple EAC formulas exist for different forecasting scenarios and assumptions.
Performance Analysis
Variance Analysis
Cost variance analysis helps identify budget deviations, understand cost drivers, and implement corrective actions to bring the project back on track financially.
Budget Forecasting
Use CPI and cost variance data to forecast project completion costs, identify potential overruns, and make informed decisions about budget adjustments.
Cost Control
Regular cost variance monitoring enables proactive cost management, resource optimization, and ensures project financial objectives are met.
Cost Variance Best Practices
Regular Tracking
Monitor cost variance weekly to identify budget deviations early and implement corrective actions promptly.
Root Cause Analysis
Investigate cost variance sources to understand why costs deviate and prevent future overruns.
Accurate AC Data
Ensure actual costs are captured accurately and timely for reliable variance analysis.
Change Management
Update budget baselines when scope changes occur to maintain accurate variance calculations.
Stakeholder Reporting
Communicate cost variance results clearly with actionable insights and recovery strategies.
Integrated EVM
Combine cost variance with schedule variance for comprehensive project performance assessment.