PMP EVM Formulas: The Complete Guide with Worked Examples

Quick answer: These are all the earned value formulas the 2026 PMP exam expects. Variances subtract and negative is bad; indices divide and below 1.0 is bad; when a forecasting question gives no other signal, use EAC = BAC ÷ CPI.

• EV (Earned Value) = actual % complete × BAC
• PV (Planned Value) = planned % complete × BAC
• AC (Actual Cost) = what the completed work actually cost
• CV (Cost Variance) = EV − AC
• SV (Schedule Variance) = EV − PV
• CPI (Cost Performance Index) = EV ÷ AC
• SPI (Schedule Performance Index) = EV ÷ PV
• EAC = BAC ÷ CPI — typical variance (the default)
• EAC = AC + (BAC − EV) — atypical, one-off variance
• EAC = AC + bottom-up ETC — original estimate no longer valid
• EAC = AC + (BAC − EV) ÷ (CPI × SPI) — cost and schedule pressure both persist
• ETC (Estimate to Complete) = EAC − AC
• VAC (Variance at Completion) = BAC − EAC
• TCPI = (BAC − EV) ÷ (BAC − AC) to hit BAC, or (BAC − EV) ÷ (EAC − AC) to hit an approved EAC

Earned value management did not disappear with the 2026 exam. Predictive content still carries roughly 40% of the 180 questions, and EVM sits squarely inside the Process domain's 41% weight — see the agile-predictive split for the bigger picture. What the exam wants is not heroic arithmetic; it wants you to compute a handful of values quickly and, more often, to interpret them correctly.

One scenario, every formula.

The scenario

CloudShift is a data-center migration: budget at completion (BAC) of $200,000 over 10 months. At the end of month 4, the plan said 40% of the work would be done. The team has actually completed 35% and spent $77,000.

The core three

• PV (Planned Value) — the value of work scheduled to date: 40% × $200,000 = $80,000
• EV (Earned Value) — the value of work actually performed: 35% × $200,000 = $70,000
• AC (Actual Cost) — what that work cost: $77,000

Memory anchor: EV is the star of the show. It appears first in every variance and every index that follows.

Variances: how far off are we?

• SV (Schedule Variance) = EV − PV = 70,000 − 80,000 = −$10,000 → behind schedule
• CV (Cost Variance) = EV − AC = 70,000 − 77,000 = −$7,000 → over budget

Negative is bad, positive is good, zero is on plan. Always.

Indices: how efficient are we?

• SPI (Schedule Performance Index) = EV ÷ PV = 70,000 ÷ 80,000 = 0.875 → progressing at 87.5% of the planned rate
• CPI (Cost Performance Index) = EV ÷ AC = 70,000 ÷ 77,000 = 0.909 → about 91 cents of value earned per dollar spent

Below 1.0 is bad, above 1.0 is good. Variances subtract; indices divide.

Forecasting: the four EAC variants

EAC (Estimate at Completion) is the forecast of what the whole project will cost, given what we now know. The exam gives you four variants, and the stem's wording tells you which one applies.

Default rule: if the stem gives no signal, use BAC ÷ CPI.

ETC and VAC

• ETC (Estimate to Complete) = EAC − AC. Using the first EAC: 220,000 − 77,000 = $143,000 still to spend.
• VAC (Variance at Completion) = BAC − EAC = 200,000 − 220,000 = −$20,000 → expect to finish about $20,000 over budget.

EAC is the total at the finish line; ETC is only the remaining leg.

TCPI: how efficient must we become?

TCPI (To-Complete Performance Index) measures the cost efficiency required on the remaining work to hit a target.

• To hit BAC: (BAC − EV) ÷ (BAC − AC) = 130,000 ÷ 123,000 ≈ 1.06 → every remaining dollar must earn $1.06 of value. Above 1.0 means the team must outperform its plan — the further above, the less realistic.
• To hit an approved EAC: (BAC − EV) ÷ (EAC − AC) = 130,000 ÷ 143,000 ≈ 0.91 → matching the current CPI, which is a handy sanity check whenever EAC = BAC ÷ CPI.

How EVM shows up on the 2026 exam

Expect three packaging styles: pull-down items ("a CPI of 0.92 means the project is [...] budget"), exhibit-based items that hand you a status table and ask for a computed value, and word-problem multiple choice — all illustrated in our question types guide. Interpretation questions outnumber pure calculation: knowing that CPI 0.91 means over budget, earning 91 cents per dollar wins more points than fast long division.

Practical notes: an on-screen calculator is available, and you should walk in with the formulas memorized rather than expecting a reference sheet. Keep an eye on units (dollars vs. percentages) and on which "percent complete" a stem gives you — planned or actual.

Drill, miss, retest

Retesting your misses is what makes formulas stick. Formula knowledge decays fast under stress, and the fix is not another read-through; it is missing a TCPI question on Tuesday and being forced to face it again Thursday until you get it right twice running. ExamElephant does exactly that — every missed EVM question is requeued until you have mastered it. Start with 75 free questions and find out which formulas are pretending to be memorized. Then slot two formula drills a week into the 90-day plan.

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