Insert the information in the form and the calculator will determine the cost performance index.

What is the cost performance index?

The cost performance index (CPI) is a measurement of the financial efficiency and effectivness of a project. It shows the amount of work done for each unit of spent cost.

How to calculate cost performance index?

To calculate cost performance index you should use the following formula:
cost performance index = earned value / actual costs

example: A project has earned value worth of $310,000 and it also has $215,000 in actual costs, calculate the cost performance index of this project?

Using the cost performance index formula the asnwer will be:

cost performance index = earned value / actual costs
cost performance index = $310,000 / $215,000
cost performance index = 1.44

Why use cost performance index?

Project managers usually use the cost performance index in order to know if the project is running as planned or corrective actions should be implemented.