Skip to main content

Cost Performance Index (CPI)

The cost performance index (CPI) measures how efficiently work is being performed regarding the budgeted cost of the work. CPI is expressed as the ratio of earned value (EV) to actual cost (AC).

CPI = EV / AC

  • A CPI value of 1 indicates that the project is on budget.
  • A CPI value greater than 1 indicates that the project is under budget.
  • A CPI value of less than 1 indicates that the project is over budget.
No Comments
Back to top