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.