Cost Variance (CV)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Cost Variance (CV) is the difference between earned value (BCWP) and actual cost (ACWP), and is a measure of cost efficiency. CV can be calculated both for the current period and cumulative to date.
CV is calculated as CV = BCWP - ACWP and can be measured for a single period or cumulative to date. A negative CV means actual cost exceeds the value earned (an overrun); a positive CV means the opposite (an underrun).
Why it matters
CV translates cost performance into an actual dollar (or hour) figure rather than a ratio, making it easy to see the real size of a cost problem. Tracking CV from period to period helps show whether an issue is growing, shrinking, or holding steady.
Also known as
N/A
Used in
Cost Performance Index (CPI = BCWP / ACWP); Variance Analysis Report
See also
FAQ
Is a negative Cost Variance always a serious problem?
Not necessarily on its own — a small negative CV early in a project may be minor, but a large or worsening negative CV over several periods is a strong warning sign.
How is CV different from CPI?
CV shows the size of the Cost Variance in dollars or hours, while CPI shows the same relationship as an efficiency ratio — both come from the same two numbers but are representing the value on a different scale.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
