Expected Monetary Value Calculator

Calculate Expected Monetary Value (EMV)



Formula

The formula to calculate the Expected Monetary Value (EMV) is:

\[ \text{EMV} = C \times \left( \frac{P}{100} \right) \]

Where:

What is Expected Monetary Value?

Expected Monetary Value (EMV) is a financial concept that quantifies the expected value of an event in monetary terms. It is calculated by multiplying the total monetary impact of the event by the probability of the event occurring. EMV is commonly used in risk management, project management, and decision analysis to evaluate the potential financial outcomes of different scenarios.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Expected Monetary Value:

\[ \text{EMV} = 50,000 \times \left( \frac{20}{100} \right) = 50,000 \times 0.2 = 10,000 \text{ dollars} \]

The Expected Monetary Value is $10,000.