Planned Value Calculator: Formula & Examples

This calculator computes Planned Value (PV) for earned value management: you enter the project’s total budget at completion (BAC) and the planned percentage of work that should be complete by a given date, and it returns the PV in dollars (or any currency). PV answers the question, “How much work should be done by now, in terms of budgeted cost?”

Formula

The Planned Value formula is:

PV = BAC × Planned % Complete

• PV – Planned Value (currency, e.g., USD, EUR)
• BAC – Budget at Completion, the total approved budget for the project (currency)
• Planned % Complete – the percentage of the project that was scheduled to be finished by the measurement date, expressed as a decimal (e.g., 40% = 0.40)

In earned value management (EVM), Planned Value is also called BCWS (Budgeted Cost of Work Scheduled). It is a baseline: it tells you the budgeted cost of the work that should have been accomplished by a specific point in time, according to the project plan.

Worked Example

Using the default values from the calculator:

• BAC = $100,000
• Planned % complete = 40% (0.40)

PV = $100,000 × 0.40 = $40,000

So, if the project is supposed to be 40% complete by now, the planned value is $40,000. That means you should have spent (or at least earned) $40,000 worth of work by this date, according to the baseline schedule.

Why Planned Value Matters

Planned Value is one of the three core metrics in earned value management, alongside:

• Earned Value (EV) – the budgeted cost of work actually performed (BAC × actual % complete)
• Actual Cost (AC) – the actual cost incurred for the work performed

Comparing PV to EV and AC gives you schedule and cost performance indicators:

• Schedule Variance (SV) = EV − PV (positive = ahead of schedule)
• Schedule Performance Index (SPI) = EV / PV (greater than 1 = ahead of schedule)
• Cost Variance (CV) = EV − AC (positive = under budget)
• Cost Performance Index (CPI) = EV / AC (greater than 1 = under budget)

For example, if your PV is $40,000 but your EV is only $30,000, you are behind schedule. If your AC is $35,000, you are also over budget relative to the value of work performed.

How to Estimate Planned % Complete

The hardest part is often determining the planned percentage. In practice, you can derive it from your project schedule:

• Weighted milestones – assign a weight to each deliverable or phase, then sum the weights of completed milestones.
• Duration-based – if work is spread evenly over time, planned % = elapsed time / total time. For example, a 12-month project at month 3 has 25% planned.
• Resource-based – planned % = planned person-hours to date / total planned person-hours.

For a simple linear project, the planned % is just the time fraction. But for projects with uneven effort (e.g., heavy design phase early), use a weighted schedule.

Common Mistakes and Misconceptions

Here are the most frequent errors when calculating or interpreting Planned Value:

• Confusing PV with actual spending – PV is not how much you have spent; it is how much you planned to spend by this date.
• Using actual % complete instead of planned – For PV, you must use the planned percentage, not the actual one. Actual % complete goes into EV.
• Unit mix-ups – Ensure the percentage is in decimal form or divide by 100 correctly. A common mistake is entering 40 as 40% but then multiplying by 0.4 incorrectly.
• Ignoring the baseline – PV is only meaningful if the BAC and schedule are approved baselines. If the plan changes, you must rebaseline.

A common misconception is that PV is a measure of cost. Actually, it is a measure of schedule in monetary terms. It tells you the budgeted cost of the work that should be done, so you can compare it to what was actually done (EV).

Limitations of the Formula

The PV formula assumes a linear relationship between budget and work. In reality, projects often have non-linear spending curves (e.g., S-curves). The formula works best when the planned % is derived from a detailed schedule, not just time proportion.

Also, PV is a snapshot at a specific date. It does not reflect future performance or remaining work. For forecasting, you would use other EVM metrics like Estimate at Completion (EAC) or To-Complete Performance Index (TCPI).

For projects with multiple phases or work packages, you should sum the PV of each component. The calculator here gives a single PV for a single planned %; for a full project, you would calculate PV for each work package and sum them.

How to Use This Calculator Effectively

To get the most out of this tool:

• Enter the total approved budget (BAC) – this should be the same figure you use in your project charter or budget baseline.
• Determine the planned % complete from your schedule. For example, if you have 5 phases and each is 20% of the budget, and you planned to finish 2 phases by now, your planned % is 40%.
• Read the PV result. Use it in your EVM calculations: compare with EV and AC.

You can also use the calculator in reverse: if you know your PV and BAC, you can find the planned % complete (PV / BAC). But the direct calculation is the most common need.

Frequently Asked Questions

What is the difference between Planned Value and Earned Value?

Planned Value (PV) is the budgeted cost of work that should have been done by a specific date, based on the schedule. Earned Value (EV) is the budgeted cost of work actually performed. For example, if you planned to complete 40% of a $100,000 project (PV=$40,000) but actually completed 30% (EV=$30,000), you are behind schedule.

Can Planned Value be negative?

No. Planned Value is always zero or positive, because both BAC and planned % complete are non-negative. If you have not started the project, PV is zero. If you are at the end, PV equals BAC (100% planned).

How do I calculate Planned Value for a project with multiple tasks?

Sum the PV of each task. For each task, multiply its budget (part of BAC) by its planned % completion. For example, if Task A has a budget of $20,000 and is planned 50% complete, and Task B has $30,000 and planned 30%, then PV = $20,000×0.5 + $30,000×0.3 = $10,000 + $9,000 = $19,000.

What is a good Schedule Performance Index (SPI)?

An SPI greater than 1.0 means you are ahead of schedule (EV > PV). An SPI of exactly 1.0 means you are on schedule. An SPI less than 1.0 means you are behind schedule. For example, EV=$35,000 and PV=$40,000 gives SPI=0.875, indicating you are behind.

Does Planned Value include contingency reserves?

It depends on your project baseline. Typically, PV is based on the performance measurement baseline (PMB), which may include contingency reserves if they are part of the budget. Management reserves are usually excluded. Check your organization’s EVM policy.

Can I use this calculator for any currency?

Yes. The calculator treats the BAC as a unitless number, so you can enter dollars, euros, or any other currency. The PV result will be in the same currency.

Related

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• Consumer Surplus Calculator Using Demand Function
• CPC Calculation Formula: Cost Per Click Explained

in bac | Budget at Completion (BAC) | $ | 100000 | 0 | 1000000000
in pct | Planned % complete | % | 40 | 0 | 100
out pv | Planned Value (PV) | $ | bac * pct / 100 | 2