1. What Is Cost Variance Percentage?

Cost Variance Percentage (CV%) is a key performance indicator in project management that measures the percentage deviation between the actual cost and the earned value of a project. It helps assess whether a project is under or over budget.

2. How Does The Calculator Work?

The calculator uses the Cost Variance Percentage formula:

Where:

• \( CV \) — Cost Variance (Actual Cost - Earned Value)
• \( EV \) — Earned Value (Budgeted Cost of Work Performed)

Explanation: A positive CV% indicates the project is under budget, while a negative CV% indicates the project is over budget.

3. Importance Of Cost Variance Calculation

Details: Monitoring cost variance percentage is essential for effective project cost control, budget management, and making informed decisions about project financial health.

4. Using The Calculator

Tips: Enter both Cost Variance (CV) and Earned Value (EV) in USD. Earned Value must be greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What does a positive CV% indicate?
A: A positive CV% indicates that the project is under budget, meaning actual costs are less than the earned value.

Q2: What does a negative CV% indicate?
A: A negative CV% indicates that the project is over budget, meaning actual costs exceed the earned value.

Q3: How often should cost variance be calculated?
A: Cost variance should be calculated regularly throughout the project lifecycle, typically during weekly or monthly project reviews.

Q4: What are acceptable CV% ranges?
A: Acceptable ranges vary by project and organization, but generally, a CV% within ±5% is considered acceptable for most projects.

Q5: Can CV% be used with other performance metrics?
A: Yes, CV% is often used alongside Schedule Variance (SV) and Cost Performance Index (CPI) for comprehensive project performance analysis.