1. What is Earned Value Analysis?

Earned Value Analysis (EVA) is a project management technique that measures project performance and progress in an objective manner. For real estate projects, it helps track the value of work completed compared to the planned budget.

2. How Does the Calculator Work?

The calculator uses the basic Earned Value formula:

Where:

• \( EV \) — Earned Value (dollar value of work actually completed)
• \( \%\text{complete} \) — Percentage of project completed
• \( BAC \) — Budget at Completion (total planned budget)

Explanation: The formula calculates how much of the budget should have been spent given the actual amount of work completed.

3. Importance of Earned Value in Real Estate

Details: In real estate development, EVA helps track whether the project is on budget, identify cost overruns early, and make data-driven decisions about resource allocation.

4. Using the Calculator

Tips: Enter the percentage of project completed (0-100%) and the total project budget. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is percentage completion determined in real estate projects?
A: Typically based on physical completion (e.g., foundation poured, framing complete) or cost-based completion (percentage of budget spent).

Q2: What's a good EV compared to actual cost?
A: EV should be close to actual costs (AC). EV > AC means under budget; EV < AC means over budget.

Q3: Can this be used for renovation projects?
A: Yes, EVA works for any project with defined scope and budget, including renovations.

Q4: How often should EV be calculated?
A: For most real estate projects, monthly EV calculations provide good oversight without excessive effort.

Q5: What other metrics complement EV?
A: Schedule Variance (SV) and Cost Performance Index (CPI) provide additional insights when used with EV.