Cost Performance Index (CPI)

The Cost Performance Index (CPI) is the ratio of Earned Value to Actual Cost and is used to estimate the projected cost of completing the project.

CPI = EV / AC

A CPI greater than 1 means that the cost of completing the work is less than planned (under budget).

A CPI less than 1 means that the cost of completing the work is higher than planned (bad).

A CPI equals to 1 means that the cost of completing the work is right on plan (good).