PMP Earned Value Questions Test Diagnosis, Not Just Math
The PMP exam usually gives you a project scenario, a few earned value numbers, and asks what the project manager should conclude about cost, schedule, or forecasted completion.
That means memorizing formulas is only step one. The real PMP skill is knowing what each number tells you.
Current PMP exam context: as of May 2026, PMI lists the current PMP exam as 180 questions and 230 minutes. PMI also states that a new PMP exam launches on July 9, 2026, with 180 questions and 240 minutes. Candidates taking the current version need to sit for the exam before July 8, 2026.
Earned value is still worth learning because it gives you a compact way to answer three PMP-style questions: are we over or under budget, are we ahead or behind schedule, and what will the project likely cost if performance continues?
PMP Earned Value Formula Cheat Sheet
The formulas below are the core earned value metrics that show up most often in PMP preparation. The exam may not ask for every formula directly, but it can test whether you understand what each number means.
| Metric | Formula | What It Tells You | PMP Interpretation |
|---|---|---|---|
| PV | Planned Value | Budgeted value of work planned | What you expected to complete by now |
| EV | Earned Value | Budgeted value of work actually completed | What the completed work is worth |
| AC | Actual Cost | Actual money spent | What you actually paid |
| CV | EV − AC | Cost variance | Positive = under budget; negative = over budget |
| SV | EV − PV | Schedule variance | Positive = ahead; negative = behind |
| CPI | EV ÷ AC | Cost performance index | Above 1.0 = efficient; below 1.0 = inefficient |
| SPI | EV ÷ PV | Schedule performance index | Above 1.0 = ahead; below 1.0 = behind |
| EAC | BAC ÷ CPI | Forecasted total cost | Used when current cost performance continues |
| ETC | EAC − AC | Remaining cost estimate | How much more money the project needs |
| VAC | BAC − EAC | Final budget variance | Expected budget surplus or deficit |
PV vs EV vs AC: The Three Numbers Behind Every Earned Value Question
Planned Value is the value of the work you planned to finish by the status date.
Earned Value is the value of the work actually finished by the status date.
Actual Cost is what you actually spent to finish that work.
Assume a project has a total budget of $500,000. By the end of month three, the baseline plan said the team should have completed $300,000 worth of work. The team actually completed $250,000 worth of work and spent $275,000.
| Metric | Value | Meaning |
|---|---|---|
| BAC | $500,000 | Total approved project budget |
| PV | $300,000 | Value of work planned by now |
| EV | $250,000 | Value of work actually completed |
| AC | $275,000 | Actual cost incurred so far |
Earned Value Snapshot
PV vs EV vs ACCV and SV: How to Read Cost and Schedule Variance
A negative cost variance means the project spent more than the value of the completed work. On the PMP exam, negative CV means cost performance is unfavorable.
Schedule variance does not mean the project is exactly $50,000 late in calendar time. It means the value of completed work is $50,000 less than the value of work that should have been completed by the status date.
CPI and SPI: The 1.0 Rule
CPI and SPI convert variance into a ratio. For PMP questions, 1.0 is the dividing line.
Cost Performance
CPI 0.91
Earning $0.91 of value per $1.00 spent.
Schedule Performance
SPI 0.83
$0.83 of work completed for every $1.00 planned.
Exam Shortcut
1.0
Above 1.0 is favorable. Below 1.0 is unfavorable.
EAC, ETC and VAC: Forecasting the Final Project Cost
Use EAC = BAC ÷ CPI when current cost performance is expected to continue.
Forecasted Cost vs Original Budget
BAC compared with EACFull Worked Example: PMP Earned Value Scenario
A project has a total approved budget of $500,000. At the end of month three, the project baseline shows that $300,000 worth of work should have been completed. The team has actually completed $250,000 worth of work and spent $275,000.
Calculate CV, SV, CPI, SPI, EAC, ETC, and VAC.
Identify the base values
BAC = $500,000, PV = $300,000, EV = $250,000, and AC = $275,000.
Calculate CV and SV
CV = $250,000 − $275,000 = −$25,000. SV = $250,000 − $300,000 = −$50,000.
Calculate CPI and SPI
CPI = $250,000 ÷ $275,000 = 0.91. SPI = $250,000 ÷ $300,000 = 0.83.
Forecast completion cost
EAC = $500,000 ÷ 0.91 ≈ $549,451. ETC = $549,451 − $275,000 = $274,451. VAC = $500,000 − $549,451 = −$49,451.
Cost Variance
−$25K
Over budget for work completed.
Schedule Variance
−$50K
Behind the approved plan.
Forecast
$549K
Projected over original BAC.
Common PMP Earned Value Mistakes
Mistake 1: Comparing AC to PV
If AC is lower than PV, the project may look under budget. That conclusion can be wrong. Cost performance compares EV to AC, not AC to PV.
In the example, AC is $275,000 and PV is $300,000. The project spent less than planned by the status date, but it also completed less work than planned. Since EV is only $250,000, the project spent $275,000 to produce $250,000 of value.
Mistake 2: Treating CPI and SPI as percentages
A CPI of 0.91 is not "91% over budget." It means the project earns $0.91 of value per $1.00 spent.
A SPI of 0.83 does not mean the project is exactly 17 days late or 17% late in calendar terms. It means the project has earned 83% of the planned value expected by the status date.
Mistake 3: Using the Wrong EAC Formula
| Scenario | Formula |
|---|---|
| Current cost performance is expected to continue | EAC = BAC ÷ CPI |
| Original estimate is no longer valid | EAC = AC + Bottom-up ETC |
| Future work will be completed at the planned rate | EAC = AC + BAC − EV |
| Cost and schedule performance both affect future work | EAC = AC + [(BAC − EV) ÷ (CPI × SPI)] |
PMP Practice Question: CPI Interpretation
A project has a BAC of $800,000. At the current status date, PV is $420,000, EV is $360,000, and AC is $400,000.
What is the project's CPI, and what does it mean?
A. 0.86; the project is behind schedule
B. 0.90; the project is over budget
C. 1.11; the project is under budget
D. 0.90; the project is ahead of schedule
Correct answer: B. 0.90; the project is over budget.
CPI = EV ÷ AC = $360,000 ÷ $400,000 = 0.90. A CPI below 1.0 means the project is cost inefficient. Option A uses the wrong interpretation because behind schedule is measured with SPI, not CPI.
PMP Exam-Day Shortcut
Use this sequence when a PMP question gives you earned value numbers:
| Question Type | Use |
|---|---|
| Cost variance | CV = EV − AC |
| Schedule variance | SV = EV − PV |
| Cost efficiency | CPI = EV ÷ AC |
| Schedule efficiency | SPI = EV ÷ PV |
| Forecasted final cost | EAC |
| Remaining cost | ETC |
| Final budget variance | VAC |
The fastest diagnostic is this: for cost questions, compare EV to AC. For schedule questions, compare EV to PV. For index questions, remember that 1.0 is the dividing line.
Exam details verified against PMI.org on May 23, 2026. Confirm current PMP exam requirements directly with PMI before scheduling your exam.
Practice PMP Earned Value Questions With SimpuTech
If you want help working through earned value questions step by step, use the SimpuTech PMP AI Tutor. It can explain CPI, SPI, CV, SV, EAC, ETC, and VAC using your own practice scenario, then generate new PMP-style questions until the formulas feel automatic.
Try the SimpuTech PMP AI Tutor →