Earned Value

CPI Calculator

Compute Cost Performance Index (CPI) to determine cost efficiency of work performed versus money spent on your project.

Calculator
CPI = EV / AC
Enter 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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