CPI Calculator
Compute Cost Performance Index (CPI) to determine cost efficiency of work performed versus money spent on your project.
Calculator
CPI = EV / ACEnter values to compute.
Interpretation Guide
- CPI > 1.0Project is under budget.
- CPI = 1.0Project is exactly on budget.
- 0.9 ≤ CPI < 1.0Minor cost overrun — monitor closely.
- CPI < 0.9Significant cost overrun — corrective action needed.
Example
Spent $95,000 (AC) to deliver $80,000 of earned work (EV) → CPI = 0.84. You are spending $1.19 for every $1.00 of value delivered.
Real-world use cases
- Monthly cost performance reviews
- Forecasting Estimate At Completion (EAC)
- Portfolio capital allocation decisions
- Identifying cost-overrun trends early
Common mistakes
- Forgetting to include committed costs in AC.
- Comparing CPI without normalizing for scope changes.
- Ignoring cost variance trends in favor of single-period snapshots.
Professional tips
- Use CPI to forecast EAC: EAC = BAC / CPI.
- Track CPI trend monthly to spot deteriorating performance.
- Combine with SPI for a complete performance picture.
FAQ
Frequently asked questions
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