Definition
Planned value (PV) represents the authorized budget assigned to the work to be completed by a specific point in time. It is the budgeted cost for the work scheduled. In practice, PV is calculated by multiplying the planned percentage of the work completed by the budget for that work. Understanding PV is crucial for monitoring project performance and forecasting future outcomes. For instance, if a project is planned to be 50% complete by week four and its total budget is $10,000, the planned value at week four is $5,000. This differs from earned value, which measures the value of the work actually performed. Planned value is a fundamental concept tested on the PMP, CAPM, and PMI-ACP certifications.