# EVM - Examples

To illustrate the concept of EVM and all the formulas, assume a project that has exactly one task. The task was baselined at 8 hours, but 11 hours have been spent and the estimate to complete is 1 additional hour. The task would have been completed already.

Assume an Hourly Rate of $100 per hour.

Using this information -

**PV or BCWS = Hourly Rate × Total Hours Planned or Scheduled**

PV = $100 × 8 hours = $800

**AC or ACWP = Hourly Rate × Total Hours Spent**

AC = $100 × 11 hours = $1100

**EV or BCWP = Baselined Cost × % Complete Actual**

EV = baseline of $800 × 91.7% complete = $734

(NOTE % Complete Actual (below) to get the 91.7%)

**BAC = Baselined Effort − hours × Hourly Rate**

BAC = 8 hours × $100 = $800

**EAC = AC + ETC**

EAC = 1100 + 100 = $1200

**VAC = BAC − EAC**

VAC = $800 − $1200 = −$400

**% Completed Planned = PV ⁄ BAC**

% Complete Planned = $800 PV ⁄ $800 BAC = 100%

**% Completed Actual = AC ⁄ EAC**

% Complete Actual = $1100 AC ⁄ $1200 EAC = 91.7%

**SV = Earned Value (EV) − Planned Value (PV)**

SV = $734 EV − $800 PV = −$66

**SPI = Earned Value (EV) ⁄ Planned Value (PV)**

SPI = $734 EV ⁄ $800 PV = 0.91

**CV = Earned Value (EV) − Actual Cost (AC)**

CV = ($734 EV − $1100 AC) = −$366^{*}

* indicates a cost overrun

**CPI = Earned Value (EV) ⁄ Actual Cost (AC)**

CPI = $734 EV ⁄ $1100 AC = 0.66^{*}

* indicates over-budget