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Cost Variance (CV) = BCWP â ACWP. 1  The formula mentioned above gives the variance in terms of cost. 2  Positive CV indicates the project is under-budget. 3  Negative CV indicates the project is over-budget.
In our project example, the SPI is $19,575 / $23,570 or .83 and the cost performance index is. $19,575 / $23,170 or .84. Both calculations are less than 1 and indicate the project is behind schedule and over budget. The project manager needs to address these variances to improve the performance of the project.he resource costs need to be entered to calculate the projectâs planned value (PV) or budgeted cost of work scheduled (BCWS). In this example, Customer Cindy was assigned a $0.00 dollar amount since the client isnât being charged for their participation in the project.