Expected Monetary Value (EMV) Calculator





Expected Monetary Value Formula

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

\[ \text{EMV} = \text{Probability of Occurrence} \times \text{Impact of Occurrence} \]

Description

The Expected Monetary Value (EMV) is a crucial metric in project management and decision-making. It helps estimate the potential financial impact of risk events by multiplying the probability of the event occurring by its financial impact.

Example Calculation

Let's consider a scenario:

To calculate the EMV:

\[ \text{EMV} = 0.2 \times 50,000 = 10,000 \]

Therefore, the Expected Monetary Value (EMV) is $10,000.