A Comprehensive Glossary of
Project Management Terms

Everything you need to know about project management in one list

What is the Cost Performance Index (CPI)?

The Cost Performance Index (CPI) is a method for calculating the cost efficiency and financial effectiveness of a specific project through the following formula:

CPI = earned value (EV) / actual cost (AC).

A CPI ratio with a value higher than 1 indicates that a project is performing well budget-wise. A CPI value of 1 indicates that a project is performing on budget. A CPI value that is less than 1 indicates that a project is over budget.

Further Reading:

A Complete Guide to Deliverables in Project Management
Dependencies in Project Management – A Complete Guide
How to Effectively Track Project Progress for Success?
How to Stay Organized at Work – 9 Simple Steps

What is the Cost Performance Index (CPI)?

The Cost Performance Index (CPI) is a method for calculating the cost efficiency and financial effectiveness of a specific project through the following formula:

CPI = earned value (EV) / actual cost (AC).

A CPI ratio with a value higher than 1 indicates that a project is performing well budget-wise. A CPI value of 1 indicates that a project is performing on budget. A CPI value that is less than 1 indicates that a project is over budget.

Further Reading:

A Complete Guide to Deliverables in Project Management
Dependencies in Project Management – A Complete Guide
How to Effectively Track Project Progress for Success?
How to Stay Organized at Work – 9 Simple Steps