Cost variance (CV) is an earned value measure of cost performance: the difference between the value of work completed (earned value) and what it actually cost (actual cost), or CV = EV − AC. A positive CV means the work cost less than budgeted; a negative CV means it cost more.
Because it compares budgeted value to real cost, CV shows whether a project is over or under budget for the work done so far, independent of schedule. It is often tracked alongside the cost performance index (CPI).
Related: earned value, actual cost, cost performance index.
Last updated: 4 July 2026 · By Tom, PMP-certified since 2004