Earned Value (EV) is a key concept in project management, particularly in cost management and
performance measurement. It is defined as the budgeted amount for the work actually completed by
a specific point in time. This is calculated as the budget for the cost (work) account multiplied by the
percentage of completion for that account.
For example, if a work package has a total budget of $100,000 and is 50% complete, the earned value
for that work package would be $50,000. EV is essential in performance measurement because it
allows project managers to assess how much of the planned work has been completed at a certain
cost, providing a clear indicator of project progress and efficiency.
