Definition
Earned value (EV) is a project management metric that measures the amount of work completed and its associated value against the planned budget. It integrates scope, schedule, and cost to provide a unified view of project performance. Earned value works by comparing the budgeted cost of work performed (BCWP) to the actual cost of work performed (ACWP) and the planned value of work scheduled (PVWP). This metric is crucial for understanding project status, forecasting future performance, and making informed decisions about resource allocation and risk management. For instance, if a project phase planned to cost $10,000 and is 50% complete, its earned value is $5,000, regardless of how much has actually been spent. A common point of confusion is mistaking earned value for simply the budget allocated to a task, rather than the value of the work actually accomplished within that budget. Earned value concepts are fundamental to project management and appear on PMP, CAPM, and PMI-ACP examinations.