Planned Value (PV) and Earned Value (EV)

 Budget at Completion (BAC) is the total estimated cost of a project after it's completed, including all allocated budgets and any remaining budget. It's a key factor in client project planning, helping to understand the total expected expenses. BAC is established early in the contract at the control account level and can be rolled up and reported at any level of the Work Breakdown Structure (WBS).

Planned Value = (Planned % Complete) X BAC (Budget at Completion)

Example:

Project cost (BAC): 100,000 USD

Project duration: 12 months

Time elapsed: 6 months

Percent complete: 50% (as per the schedule)

= 50% of BAC

= 50% of 100,000

= (50/100) X 100,000

= 50,000 USD

Therefore, the project’s Planned Value (PV) is 50,000 USD.

Earned Value = % of completed work X BAC (Budget at Completion)

Example:

Project cost (BAC): 100,000 USD

Project duration: 12 months

Time elapsed: 6 months

Percent complete: 40% (as per current status)

= 40% of BAC

= 40% of 100,000

= (40/100) X 100,000

= 40,000 USD

Therefore, the project’s Earned Value (EV) is 40,000 USD.

If the project going in same trend it will take 3 months additional timeline to complete the project.

 

There is no special formula to calculate the Actual Cost. It is an amount that has been spent, and you can find it easily in the question.

Example of Actual Cost (AC)

You have a project to be completed in 12 months. The budget of the project is 100,000 USD. 

Six months have passed, and 60,000 USD has been spent, but on closer review, you find that only 40% of the work has been completed so far.

The Actual Cost is the amount of money that you have spent so far. You have spent 60,000 USD on the project so far.

Hence,

The project’s Actual Cost is 60,000 USD.