Difference between Cost Variance and Schedule Variance

In project management, budget management and time management are two of the most critical factors. Cost Variance (CV) and Schedule Variance (SV) are Earned Value Management (EVM) metrics that measure the difference between what was planned and what actually happened in terms of cost and time respectively.

Cost Variance (CV)

Cost Variance represents the difference between the earned value of work completed and the actual cost spent. It tells you whether the project is under or over budget.

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

Schedule Variance (SV)

Schedule Variance represents the difference between the earned value of work completed and the planned value of work that should have been completed by now. It tells you whether the project is ahead of or behind schedule.

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

Interpreting the Variance Values

Example

A project has the following values −

Planned Value (PV)  = $100,000
Earned Value (EV)   = $80,000
Actual Cost (AC)    = $90,000

Cost Variance:
    CV = EV - AC = $80,000 - $90,000 = -$10,000
    ? Negative: project is $10,000 OVER budget

Schedule Variance:
    SV = EV - PV = $80,000 - $100,000 = -$20,000
    ? Negative: project is $20,000 worth of work BEHIND schedule

Both variances are negative, indicating the project is over budget and behind schedule.

Key Differences

Conclusion

Cost Variance measures the budget deviation (EV − AC), while Schedule Variance measures the timeline deviation (EV − PV). A positive variance is favorable in both cases, and together they give project managers a clear picture of whether a project is on track in terms of both cost and time.