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Cost Variance Calculator

Formula

To calculate the cost variance:

$\text{CV} = \text{EV} - \text{AC}$

Where:

$\text{CV}$ is the Cost Variance ($)
$\text{EV}$ is the Earned Value ($)
$\text{AC}$ is the Actual Cost ($)

What is Cost Variance?

Cost variance is defined as the difference between the earned value and the actual cost of a good. It helps in determining whether the project is under or over budget.

Example Calculation 1

Let's assume the following values:

Earned Value ( $\text{EV}$ ) = $5000
Actual Cost ( $\text{AC}$ ) = $4500

Using the formula:

$\text{CV} = 5000 - 4500 = 500$

The Cost Variance is $500.00.

Example Calculation 2

Let's assume the following values:

Earned Value ( $\text{EV}$ ) = $7000
Actual Cost ( $\text{AC}$ ) = $7500

Using the formula:

$\text{CV} = 7000 - 7500 = -500$

The Cost Variance is -$500.00.