Cost Variance (CV) Calculator

Q: How do you calculate Cost Variance (CV)?

Cost Variance is calculated using CV = EV − AC, where EV is Earned Value and AC is Actual Cost. A positive result means the project is under budget, a negative result means it is over budget, and zero means it is on budget.

Q: Why is Cost Variance important?

Cost Variance helps project managers track cost performance and identify whether actual spending is aligned with the value of work completed. Monitoring CV can help teams identify budget problems earlier and investigate the causes of cost overruns.

Use this Cost Variance (CV) Calculator to measure your project’s cost performance — showing whether you are under or over budget using Earned Value (EV) and Actual Cost (AC).

CV Calculator

Earned Value (EV) $ Actual Cost (AC) $

Formula used

The Cost Variance (CV) formula is: CV = EV − AC

CV > 0 → Under budget
CV < 0 → Over budget
CV = 0 → On budget

When is Cost Variance useful?

Cost Variance shows how efficiently a project is using its budget. It helps project managers monitor cost performance and identify potential overruns early using earned value management (EVM).

Cost Variance FAQs

How do you calculate Cost Variance (CV)?

Cost Variance is calculated using CV = EV − AC, where EV is Earned Value and AC is Actual Cost. A positive result means the project is under budget, a negative result means it is over budget, and zero means it is on budget.

Why is Cost Variance important?

Cost Variance helps project managers track cost performance and identify whether actual spending is aligned with the value of work completed. Monitoring CV can help teams identify budget problems earlier and investigate the causes of cost overruns.