PMP Formula: Budgeted Cost of Work Performed

PMP Formula Budgeted Cost of Work Performed

Budgeted Cost of Work Performed (BCWP) also known as Earned Value (EV). Earned value (EV) is a measure of work performed expressed in terms of the budget authorized for that work. It is the budget associated with the authorized work that has been completed. The EV being measured needs to be related to the PMB, and the EV measured cannot be greater than the authorized PV budget for a component. The EV is often used to calculate the percent complete of a project. Progress measurement criteria should be established for each WBS component to measure work in progress. Project managers monitor EV, both incrementally to determine current status and cumulatively to determine the long-term performance trends.

Formula Definition
  • Budgeted Cost of Work Performed (also known as)

  • Earned Value(EV)
  • = % complete * BAC

  • = % complete * PV
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