PMP Earned Value Management: 12 Worked Examples

When I prepped for my PMP, EVM was the section I drilled hardest, and I still tell candidates I coach that it is the densest math on the exam. Five to ten questions typically test it. The good news, in my experience, is that every EVM question is solvable with the same eight formulas applied to different scenarios. The candidates who memorise the formulas and practise the patterns reliably score these questions; the ones who do not consistently lose 5-10 exam points on EVM alone, and I have watched it happen more times than I would like.

In this guide I walk through 12 worked examples that, between them, cover every variation I have seen on exam day. I also share the conceptual understanding that lets you apply the formulas correctly in unfamiliar scenarios, the common traps the exam sets, and the pacing strategy I recommend for EVM questions during the exam.

VAC = BAC - EAC (Variance at Completion).

Memorise the formulas and what positive vs negative values mean: positive variance = good, negative = bad; CPI/SPI > 1 = good, < 1 = bad.

The eight formulas form a connected system. CV, SV, CPI, SPI describe current performance. EAC, ETC, VAC describe predicted final outcomes. TCPI describes what efficiency must be achieved to meet the original budget.

For exam preparation, the discipline of writing all eight formulas from memory daily for 1-2 weeks builds reliable recall. Adding 5-10 practice problems daily during this period builds the application skill.

Example 1. A 10-month project has a budget of $100,000. After 5 months, you should have completed 50% of the work and spent $50,000 of the budget. PV = $50,000.

PV (Planned Value) is the budgeted cost of work scheduled to be completed by a given date. It represents what should have been done according to the plan.

Example 2. Same project. After 5 months you have actually completed 40% of the work. EV = 0.40 × $100,000 = $40,000.

EV (Earned Value) is the budgeted cost of work actually completed. It represents the value created, measured at planned costs (not actual costs). The distinction matters - EV is not actual money spent.

Example 3. Same project. You have actually spent $55,000 to date. AC = $55,000.

AC (Actual Cost) is the actual cost incurred for work completed. It represents real money spent.

These three values (PV $50k, EV $40k, AC $55k) are the inputs for everything that follows. The relationship between PV, EV, and AC tells the story:

• EV < PV means you are behind schedule (less work done than planned).
• AC > EV means you are over budget (paid more than the work was worth).

For exam questions, PV, EV, and AC are typically given. The candidate’s job is to compute the derived metrics correctly.

Example 4. Cost Variance. CV = EV - AC = $40,000 - $55,000 = -$15,000. Negative. Project is over budget by $15k for the work completed.

CV measures whether you got value for your money. Negative CV means you paid more than the work was worth at planned costs.

Example 5. Schedule Variance. SV = EV - PV = $40,000 - $50,000 = -$10,000. Negative. Project is behind schedule by $10k worth of work.

SV measures whether you completed the planned work. Negative SV means you completed less work than planned. Note that SV is denominated in dollars, not days.

Example 6. CPI and SPI. CPI = EV / AC = 40,000 / 55,000 = 0.73. SPI = EV / PV = 40,000 / 50,000 = 0.80. Both below 1. The project is performing poorly on both cost and schedule.

CPI tells you how much value you are getting per dollar spent. CPI = 0.73 means you are getting 73 cents of value for every dollar spent. CPI = 1.0 means you are exactly on budget.

SPI tells you how much work you are completing per planned amount. SPI = 0.80 means you are completing 80% of the planned work rate. SPI = 1.0 means you are exactly on schedule.

These are your most common exam questions. Practise calculating them in 30 seconds. The formulas should be automatic on exam day.

EAC has three formulas depending on assumptions. Read the question carefully.

Example 7. Performance continues. “Assume current cost performance continues.” EAC = BAC / CPI = $100,000 / 0.73 = $137,000.

This formula assumes the project continues at the current CPI. It is the most pessimistic of the EAC formulas when CPI is below 1.

Example 8. Remaining work goes per plan. “Assume remaining work will be performed at the planned rate.” EAC = AC + (BAC - EV) = $55,000 + ($100,000 - $40,000) = $115,000.

This formula assumes the team can correct course and complete the remaining work at planned cost. It is more optimistic than the previous formula and requires the assumption that the cost overrun is behind the team.

Example 9. Both cost and schedule performance considered. EAC = AC + [(BAC - EV) / (CPI × SPI)] = $55,000 + [($60,000) / (0.73 × 0.80)] = $55,000 + [$60,000 / 0.584] = $55,000 + $102,740 = $157,740.

This formula combines current cost and schedule inefficiency into the prediction. It is the most pessimistic and applies when both factors are expected to continue.

The exam usually specifies which assumption applies. Pick the formula that matches. The wording is usually clear: “current performance continues” -> formula 1; “remaining work at planned rate” -> formula 2; “both cost and schedule efficiency continue” -> formula 3.

Example 10. ETC. ETC = EAC - AC. Using EAC of $137,000: ETC = $137,000 - $55,000 = $82,000. That is the budget required to finish.

ETC represents the money still needed to complete the project given the current EAC. It is what the PM must request from the sponsor to finish.

Example 11. VAC. VAC = BAC - EAC = $100,000 - $137,000 = -$37,000. Negative. The project will overrun the budget by $37k.

VAC tells the sponsor how much over or under the original budget the project will land. Sponsors care about VAC because it is what they will report to their leadership.

Example 12. TCPI. TCPI based on BAC: (BAC - EV) / (BAC - AC) = ($60,000) / ($45,000) = 1.33. The team must perform at 1.33 efficiency from now on to finish within the original budget. That is a steep ask.

TCPI is the cost efficiency required for remaining work to land within the target (either BAC or EAC). TCPI > 1 means the remaining work must be done more efficiently than planned. TCPI > 1.10 typically signals that the original budget is unrealistic.

The TCPI calculation has two versions: - TCPI based on BAC: (BAC - EV) / (BAC - AC) - TCPI based on EAC: (BAC - EV) / (EAC - AC)

Read the question carefully to know which is being asked.

When you see EVM numbers in an exam question, do not panic. Apply the workflow:

• Identify what is given (PV, EV, AC, BAC).
• Identify what is asked (CV, SV, CPI, SPI, EAC, ETC, VAC, TCPI).
• Apply the formula.
• Sanity-check the sign and direction.

Most exam EVM questions are computational. A small fraction ask “what would you do” given the variances. The right answer is usually corrective action plus a change request, not “do nothing”.

The PMI mindset on EVM: - Negative variance triggers analysis, not panic. - Significant variance triggers a change request. - EVM numbers should be communicated honestly to sponsors. - EAC and VAC should be revisited monthly at minimum.

For exam questions about what to do given EVM data, the right answer typically follows this pattern: analyse the cause, plan corrective action, submit a change request if scope/schedule/cost will be affected, communicate with stakeholders.

The exam sets predictable traps. Recognise them:

• Confusing CV with VAC. CV is to date. VAC is at the end. Different questions, different formulas.
• Wrong EAC formula. Reading the question carefully reveals which formula applies. Wrong formula = wrong answer.
• Sign errors. CV = EV - AC, not AC - EV. Negative variance = unfavourable.
• TCPI direction. TCPI > 1 means the remaining work must be more efficient than planned. Many candidates confuse this.
• SV in dollars vs days. SV is denominated in dollars, not days. Some candidates compute it in days and miss the unit.
• Percent complete vs EV. Percent complete × BAC = EV. Some candidates confuse the two.

The discipline that catches these traps: writing the formula explicitly before plugging in numbers. The 5-second writeout prevents the most common errors.

For candidates who consistently make calculation errors, doing 50+ EVM problems with full work shown builds reliable accuracy. The volume builds pattern recognition that prevents the traps.

EVM is most directly applied to predictive projects with clear baselines. In agile and hybrid contexts, EVM applies but with adaptations:

Pure agile: classic EVM is rare. Teams use velocity, throughput, and burn-up charts instead. The exam tests recognition of when EVM applies vs when agile metrics apply.

Hybrid projects: EVM applies to the predictive parts (the overall project, the milestone-based budget). Sprint-level work uses agile metrics. The PM aggregates both views.

Scaled agile (SAFe): programme-level planning often uses EVM-like metrics for portfolio visibility. Train-level work uses agile metrics.

For exam questions about EVM in non-traditional contexts, the right answer typically involves applying EVM to the predictive layer while using agile metrics for the agile layer. The PM’s job is to coordinate both views.

The PMBOK 7 Measurement domain explicitly accommodates both EVM and agile metrics. Strong candidates know both vocabularies and can switch based on the question context.

EVM questions are calculation-heavy. The pacing discipline:

• Write the formula explicitly.
• Plug in the numbers from the question.
• Compute carefully.
• Sanity-check the sign and direction.
• Move on.
   

Target time: 90 seconds per EVM question. Some take longer if multiple formulas chain together.

For the on-screen calculator, practise during mock exams. The interface differs from a physical calculator; familiarity helps.

If an EVM question takes longer than 2 minutes, mark it and return later. Better to attempt 5 simpler questions than to lose 5 minutes on one calculation question.

For candidates who feel slow on EVM, the practice of doing 10 EVM problems daily for two weeks before the exam builds the speed needed. The math becomes automatic with sufficient practice.

EVM fluency is acquirable. The plan:

• Week 1: memorise the 8 formulas. Write them daily from memory.
• Week 2: do 5 problems daily. Build accuracy.
• Week 3-4: do 10 problems daily. Build speed.
• Week 5-6: integrate EVM into mock exams. Time pressure.

Total practice problems before the exam: 100-200. This volume produces reliable accuracy and speed.

For candidates with strong math backgrounds, the plan compresses to 2-3 weeks. For candidates with weak math backgrounds, the plan extends to 6-8 weeks with more emphasis on conceptual understanding before formula memorisation.

The discipline that distinguishes strong EVM candidates from weak: showing work. Even on simple problems, write down PV, EV, AC, then the formula, then the calculation. The discipline catches errors before they propagate.

EVM is not just an exam topic. Real PM work uses EVM to:

• Track project performance against baseline.
• Predict final cost based on current performance.
• Identify projects in trouble early.
• Report to sponsors and leadership.
• Compare across projects in a portfolio.

The PMs who internalise EVM have a quantitative language for project performance that supplements qualitative status reports. Sponsors who understand EVM make better project investment decisions.

For PMs in companies where EVM is not formally used, individual EVM tracking still produces value. The PM has an objective measure of project health that prevents self-deception.

For PMs in companies with formal EVM (often defence, aerospace, government contracts), EVM proficiency is a hiring requirement. The exam preparation produces durable career capability.