Planifi supports 3 EV methods, 2 of them are automatically calculated or a user entered percent complete at the Project or Phase level.  When entered at the phase level the % completed is multiplied by the fee at each phase to total up a project level percent complete.  The 2 automatic calculated values for EV are:

(FEE-ETC)/FEE

or

((JTD/(ETC+JTD))*Fee)/Fee

Standard EV Metrics are available in the Summary Earned Value tab are available to tract project performance.

For a detailed overview of the EV Metrics Planifi utilized continue reading.

Project Management Book of Knowledge (PMBOK) Primer

The entire EVM framework is built upon a foundation of three primary data points. The accuracy and integrity of these inputs are paramount; the system's output is only as reliable as the data fed into it, a principle often summarized as "garbage in, garbage out".6 To ensure clarity and relevance for a business context, standard PMBOK terminology has been adapted: "Budget at Completion (BAC)" is referred to as the project

Fee, and "Actual Cost (AC)" is termed Job-to-date (JTD) costs.

Planned Value (PV) – The Baseline

Planned Value is the authorized budget assigned to the work scheduled to be accomplished as of a specific measurement date. It represents the time-phased baseline against which performance is measured, answering the question, "How much work should be done?".1 In a marathon analogy, PV is the time you are expected to have achieved at the 10-mile marker according to your race plan. It is the yardstick against which progress is judged.3

Earned Value (EV) – The Accomplishment

Earned Value is the value of the work actually completed to date, expressed in terms of the authorized budget for that work. It is arguably the most crucial element in the EVM system, as it is a component of nearly every performance calculation.1 Also known as the Budgeted Cost of Work Performed (BCWP), EV quantifies the real progress made, answering the question, "How much work

was done?".3 It is calculated as:

EV=% of Work Actually Completed×Total Project Fee

Continuing the marathon analogy, EV represents the actual distance you have covered, measured against the planned course.

Job-to-Date (JTD) – The Expenditure

Job-to-Date represents the total cost incurred and recorded for accomplishing the work performed up to the measurement date. This is the user-specified term for Actual Cost (AC) or Actual Cost of Work Performed (ACWP).3 JTD answers the question, "How much did the completed work cost?".4 In the marathon analogy, JTD is the total number of calories you have actually burned to reach your current position.

The strategic advantage of EVM emerges from the distinct comparison of these three variables, which traditional management often conflates. The gap between EV (what was accomplished) and JTD (what was paid for it) reveals the project's cost efficiency. Similarly, the gap between EV (what was accomplished) and PV (what was planned to be accomplished) reveals its schedule efficiency. Consider a project manager who reports that $50,000 (JTD) has been spent from a $100,000 Fee. This single data point is meaningless. Adding that the plan was to have spent $60,000 (PV) by this time is still insufficient; it only indicates that spending is lower than planned, which could be due to efficiency (good) or delays (bad). EVM provides the necessary context. If the value of the work actually completed is only $40,000 (EV), a complete and objective picture materializes. Comparing EV ($40,000) to JTD ($50,000) exposes a significant cost overrun. Comparing EV ($40,000) to PV ($60,000) exposes a major schedule delay. Without the concept of Earned Value, both of these critical problems would remain hidden within incomplete data.

Gauging Cost Efficiency: The Cost Performance Index (CPI)

The Cost Performance Index is the primary metric for evaluating the financial health and cost-effectiveness of a project. It provides a direct measure of the value being earned for every dollar spent, answering the essential question: "Are we getting what we paid for?".3

Formula and Calculation

The CPI is calculated as a ratio of the value of work completed to the actual cost of that work. Using the adapted terminology, the formula is:

CPI=Job-to-Date (JTD)Earned Value (EV)​5

Worked Example: A software development project has a total Fee of $200,000. At the time of analysis, project records show that 40% of the work is complete and the JTD costs are $90,000.

1. Calculate Earned Value (EV):
   EV=40%×$200,000=$80,000
2. Identify Job-to-Date (JTD):
   JTD=$90,000
3. Calculate CPI:
   CPI=$90,000$80,000​≈0.89

Interpretation (The Rule of One)

The resulting CPI value provides an immediate and unambiguous indication of cost performance:

• CPI < 1.0: The project is over budget. In the example above, a CPI of 0.89 means that for every dollar spent, the project has only generated 89 cents of value. This is an unfavorable condition indicating cost inefficiency.8
• CPI = 1.0: The project is on budget. The value of the work being completed is exactly equal to the cost incurred. Performance is precisely as planned.11
• CPI > 1.0: The project is under budget. A CPI of 1.15, for instance, would indicate that the project is generating $1.15 of value for every dollar spent. This is a favorable condition.11

While CPI is a backward-looking or "lagging" indicator, its trend over time is a powerful predictor of future outcomes. Empirical evidence from decades of project data shows that once a project is approximately 20% complete, its cumulative CPI tends to stabilize. A project with a poor CPI at this stage is highly unlikely to recover to 1.0 without significant management intervention.14 This reality transforms the CPI from a simple report card into a critical early warning signal. A project manager observing a CPI of 0.85 at the 30% completion mark must resist the temptation to hope for spontaneous improvement. Instead, this data should be treated as the project's "new normal" for performance, compelling active intervention such as re-forecasting the final cost or implementing aggressive corrective actions.

Furthermore, a CPI value is a symptom, not a diagnosis.11 It signals a problem but does not identify the root cause. An unfavorable CPI could be driven by a variety of factors, including higher-than-expected labor or material costs, excessive rework due to quality issues, inefficient processes, or unmanaged scope creep.4 The CPI acts as a smoke alarm; the project manager's responsibility is to investigate and find the source of the fire. This involves a detailed analysis of the project's Work Breakdown Structure (WBS) to pinpoint which specific activities or work packages are driving the negative variance, allowing for targeted and effective solutions.

Measuring Schedule Progress: The Schedule Performance Index (SPI)

The Schedule Performance Index measures the project's efficiency in converting time into completed work. It directly compares the amount of work actually accomplished against the amount of work that was planned to be accomplished, answering the question: "Are we progressing at the planned rate?".5

Formula and Calculation

SPI is calculated as the ratio of Earned Value to Planned Value:

SPI=Planned Value (PV)Earned Value (EV)​

5

Worked Example: A construction project has a total Fee of $200,000 and a planned duration of 10 months. The analysis is conducted at the 5-month mark, which is 50% through the schedule. At this point, progress reports confirm that 40% of the total work has been completed.

1. Calculate Earned Value (EV):
   EV=40%×$200,000=$80,000
2. Calculate Planned Value (PV):
   PV=50%×$200,000=$100,000
3. Calculate SPI:
   SPI=$100,000$80,000​=0.80

Interpretation (The Rule of One)

Similar to CPI, the SPI value is interpreted based on its relationship to 1.0:

• SPI < 1.0: The project is behind schedule. An SPI of 0.80 indicates the project is progressing at only 80% of the planned rate. Less work has been completed than was scheduled for the given time period.12
• SPI = 1.0: The project is on schedule. The amount of work completed is exactly what was planned.15
• SPI > 1.0: The project is ahead of schedule. An SPI of 1.20 would mean the project is progressing 20% faster than planned, having completed more work than was scheduled.15

The following table provides a quick-reference summary for both retrospective performance indices.

Despite its utility, SPI has a significant limitation: it operates with a critical path blind spot. The index measures the value of all work completed, irrespective of its sequence or criticality.17 A project team could achieve a favorable SPI (e.g., 1.1) by prioritizing numerous small, easy tasks while simultaneously delaying a single task on the critical path. While the SPI suggests the project is ahead of schedule, the delay on the critical path will inevitably push out the final completion date. Therefore, SPI must always be analyzed in conjunction with a critical path schedule analysis to provide a true picture of timeline health.

Another important characteristic of SPI is its tendency to converge to 1.0 as the project nears completion. At the very end of any project, all planned work will have been performed, meaning the cumulative Earned Value will equal the cumulative Planned Value (both will equal the total project Fee). At this point, the SPI will mathematically become 1.0, even if the project finished months late.17 This behavior underscores that SPI is a valuable in-flight metric for monitoring the rate of progress, not a definitive measure of on-time completion.

Charting the Course Forward: The To-Complete Performance Index (TCPI)

While CPI and SPI provide a clear view of past performance, the To-Complete Performance Index serves as the project's forward-looking navigation system. It bridges the gap between past results and future goals by calculating the specific cost efficiency that must be achieved on all remaining work to meet a financial target.19 TCPI answers the pragmatic and crucial question: "Given our performance to date, how efficient must we be from this point forward to finish on budget?".14

Conceptually, the TCPI is a ratio of the work remaining to the funds remaining.19 The precise formula depends on the financial reality of the project and the target being pursued.

The Two Scenarios for Project Completion

The selection of the correct TCPI formula is dictated by whether the original project budget is still considered a viable goal or if a new forecast has been established.

Scenario A: Finishing on the Original Budget (Fee)

This formula is applied when the project is performing at or better than planned (CPI is greater than or equal to 1.0), and the original Fee remains the official target.

• Formula: TCPI=Fee–JTDFee–EV​ 22
• Worked Example: A project has a Fee of $20,000. To date, the EV is $12,000 and the JTD is $11,000. The current CPI is $12,000 / 11,000=1.09, indicating the project is under budget and the original Fee is a realistic target.

• Work Remaining = $20,000−$12,000=$8,000
• Funds Remaining = $20,000−$11,000=$9,000
• TCPI=$9,000$8,000​≈0.89
• Interpretation: The team must perform with a cost efficiency of 0.89 for the rest of the project to finish exactly at the $20,000 Fee. Since their demonstrated performance (CPI) is 1.09, this target is highly achievable.

Scenario B: Finishing to a Revised Forecast (Estimate at Completion - EAC)

This formula is necessary when past performance (CPI is less than 1.0) has rendered the original Fee unattainable. In this case, management acknowledges the cost overrun and establishes a new, realistic forecast for the final project cost, known as the Estimate at Completion (EAC).

• Formula: TCPI=EAC–JTDFee–EV​ 22
• Worked Example: A project has a Fee of $200,000. To date, its EV is $80,000 and JTD is $110,000. The current CPI is $80,000 / 110,000=0.72, indicating a severe cost overrun. The original Fee is no longer achievable. A new EAC is calculated based on current performance: EAC=CPIFee​=0.72$200,000​≈$277,778.

• Work Remaining = $200,000−$80,000=$120,000
• Funds Remaining = $277,778−$110,000=$167,778
• TCPI=$167,778$120,000​≈0.72
• Interpretation: To meet the new forecast of $277,778, the team must continue to perform with a cost efficiency of 0.72, which is identical to their demonstrated historical performance.

The following table serves as a simple decision-making guide for selecting the appropriate TCPI formula.

The ultimate utility of the TCPI is revealed when it is compared directly against the project's historical CPI. This comparison serves as an objective "realism test" for the project's financial goals.20 The historical CPI represents the team's

demonstrated efficiency—what they have proven they can achieve. The TCPI represents the required efficiency—what they must achieve to meet the target. If the required efficiency (TCPI) is significantly higher than the demonstrated efficiency (CPI), the financial goal is at high risk of failure. For example, if a project's cumulative CPI is 0.80, but the TCPI to meet the original Fee is 1.05, the project team must suddenly improve its cost efficiency by over 30% for the remainder of the project. This is often an unrealistic expectation. This quantified gap between TCPI and CPI is one of the most powerful data points a project manager can present to stakeholders. It moves the conversation away from subjective opinions and toward a data-driven discussion about difficult but necessary choices: approve additional funding (increase the EAC), reduce project scope (reduce the "Work Remaining"), or formally accept the likely cost overrun.

Works cited

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