The secret to predictable projects: Earned Value Management (EVM)

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Managing project costs in Jira can be a challenging task.  Project managers often ask:

• Are we on budget?
• Will we deliver on time?
• What will the final cost be?

Without clear data, projects risk budget overruns, missed deadlines, and frustrated stakeholders.

This is where Earned Value Management (EVM) comes in. It’s a proven project management methodology that integrates scope, schedule, and cost data to provide accurate insights into project performance. With the help of Jira apps like Time & Cost Tracker for Jira, EVM reporting becomes simple and actionable.

Common project management pain points EVM solves

"Are we going to be over budget?"
→ The Cost Performance Index (CPI) shows whether spending is aligned with expectations.

"Will we deliver on time?"
→ The Schedule Performance Index (SPI) highlights potential delays or early completions.

"What’s the final cost likely to be?"
→ The Estimate at Completion (EAC) offers a realistic forecast based on current performance.

How to generate EVM reports in Jira with Time & Cost Tracker

With Time & Cost Tracker, project managers can create cost reports and export them into an EVM Excel template for in-depth analysis.

Step 1  — Install the app. 

Step 2  — Log work hours and expenses for accurate data.

Step 3 — Generate a Cost Report

• Navigate to the Cost Reports tab.
• Click Generate EVM.

Step 3 — Open the downloaded file to analyze the EVM report.

Key EVM metrics and their significance:

Metric	Meaning
Start Date & End Date	Defines the reporting period (e.g., week, month, quarter).
Planned Value (PV)	Budgeted cost of work scheduled to be completed in a specific period.
Cumulative Planned Value (CPV)	Sum of all PV values from the start of the project to now.
Earned Value (EV)	Value of work actually completed during a period.
Cumulative Earned Value (CEV)	Sum of all EV values to date.
Actual Cost (AC)	Actual money spent in a reporting period.
Cumulative Actual Cost (CAC)	Total AC from project start to now.
Cost Variance (CV = EV – AC)	Positive CV = under budget; Negative CV = over budget.
Cost Performance Index (CPI = EV ÷ AC)	CPI = 1 on track, > 1 under budget, < 1 over budget.
Schedule Variance (SV = EV – PV)	Positive SV = ahead of schedule; Negative SV = behind.
Schedule Performance Index (SPI = EV ÷ PV)	SPI = 1 on track, > 1 ahead, < 1 behind schedule.
Estimate at Completion (EAC)	Forecast of total project cost.
Estimate to Complete (ETC)	Remaining budget required.
Variance at Completion (VAC = Budget – EAC)	Difference between budget and projected final cost.
To-Complete Performance Index (TCPI)	Efficiency rate needed to complete on budget.
Actual Completed & Cumulative Completed	Tracks work completed per period and cumulatively.

Benefits of using EVM in Jira

✅ Early Warning System – detect overruns or delays before they escalate.
✅ Data-Driven Decisions – adjust timelines or resources with confidence.
✅ Progress Tracking – compare actual vs. planned performance.
✅ Transparent Reporting – share clear insights with stakeholders.

⚡Example: EVM in Action

Imagine a software development team running a 6-month Jira project with a budget of $120,000. After 3 months, an EVM report in Jira shows the following metrics:

• Planned Value (PV): $60,000 → Half of the planned budget should be spent by now.

• Earned Value (EV): $50,000 → Based on completed work, the project has only delivered $50,000 worth of value.

• Actual Cost (AC): $65,000 → The team has already spent more than planned.

From these numbers:

• CPI = EV ÷ AC = 50,000 ÷ 65,000 = 0.77 → Over budget

• SPI = EV ÷ PV = 50,000 ÷ 60,000 = 0.83 → Behind schedule

📉 Interpretation

• The project is both over budget and delayed.

• Forecasting with EAC (Estimate at Completion) predicts final costs of about $156,000 instead of $120,000.

📈 Action Plan
With this insight, the project manager can:

• Re-prioritize scope: Move lower-priority features to a later phase.

• Re-allocate resources: Assign additional developers to critical tasks.

• Negotiate deadlines with stakeholders based on realistic progress.

• Monitor progress weekly with EVM dashboards in Jira to prevent further slippage.

✅ The result: Instead of waiting until the end to discover budget overruns, the team gets early warnings and can take corrective action in time.

Why use Time & Cost Tracker for EVM in Jira?

• Centralized time & cost tracking inside Jira.
• One-click EVM export to Excel.
• Structured financial insights without manual spreadsheets.
• Seamless Sheets integration for charts & visuals.

By combining accurate time logs, expense data, and reporting, Time & Cost Tracker makes Earned Value Management in Jira practical, fast, and actionable.

Final Thoughts

EVM transforms raw project data into actionable insights. When paired with Jira and Time & Cost Tracker, it gives project managers the tools to:

• Proactively manage costs & schedules.
• Forecast outcomes with confidence.
• Deliver transparent reports to stakeholders.

👉 If you want to stay on time and on budget, leveraging Earned Value Management in Jira with the right app could be the next step for your team.

🔍 Want to see how it works for your setup? Book a live demo

📅 Try Time & Cost Tracker for Jira Cloud on the Atlassian Marketplace