The Core EVM Principle

For every variance and index formula on the PMP exam, Earned Value (EV) always comes first. Variances are Subtraction (EV - ...). Indexes are Division (EV / ...).

VISUAL FRAMEWORK: THE 3-STEP EVM DECODER 1. The 3 Inputs ($) PV = Planned Value EV = Earned Value AC = Actual Cost 2. Variances (Subtraction) SV = EV - PV Positive = Ahead of Schedule CV = EV - AC Positive = Under Budget 3. Indexes (Division) SPI = EV / PV > 1.0 = Ahead of Schedule CPI = EV / AC > 1.0 = Under Budget

How to Solve Any EVM Scenario on the PMP Exam #

When you encounter an EVM situational question on the PMP exam, follow this 3-step decision flow:

  • Step 1: Identify EV. What is the monetary value of the work physically completed?
  • Step 2: Check Schedule (PV). Is EV greater than PV? If yes, you are ahead of schedule.
  • Step 3: Check Cost (AC). Is EV greater than AC? If yes, you are under budget.
Direct Summary: In PMP Earned Value Management (EVM), Earned Value (EV) always comes first: variances subtract (EV - PV, EV - AC) where positive values indicate ahead of schedule or under budget, while index ratios divide (EV / PV, EV / AC) where values greater than 1.0 indicate favorable performance.
EVM Metric Calculation Formula Favorable Result (> 0 or > 1.0) Unfavorable Result (< 0 or < 1.0)
Cost Variance (CV) EV - AC CV > 0: Under Budget CV < 0: Over Budget
Schedule Variance (SV) EV - PV SV > 0: Ahead of Schedule SV < 0: Behind Schedule
Cost Performance Index (CPI) EV / AC CPI > 1.0: Cost Efficient (Under Budget) CPI < 1.0: Cost Inefficient (Over Budget)
Schedule Performance Index (SPI) EV / PV SPI > 1.0: Schedule Efficient (Ahead) SPI < 1.0: Schedule Inefficient (Behind)
🏆 Authoritative Knowledge Hub Blueprint

Deep Dive: Earned Value Management (EVM) Formulas & EAC/TCPI Forecasting

Review the complete reference cheat sheet for PV, EV, AC, CV, SV, CPI, SPI, EAC, VAC, and TCPI in our PMP Knowledge Hub.