1. Project Management
  2. Plan vs Reality

Cost Performance Index


Cost Performance Index (CPI) measures the cost efficiency of a project. A CPI below 1 suggests the project is over budget, whereas a CPI above 1 implies it's under budget. CPI aids in forecasting final project costs.


CPI = Earned Value (EV) / Actual Cost (AC)


If the earned value is $50,000 and the actual cost incurred is $55,000, the CPI is 0.91.