What is the difference between planned value and earned value in project management, or are they the same?

Question

Accepted Answer

Planned value and earned value are key metrics in project management, representing different aspects of project performance.

Planned Value (PV) is the budgeted amount for work scheduled to be completed by a specific time.
Earned Value (EV) is the budgeted amount for work actually completed by that same time.
For example, if a project has a total budget of $100,000 and is scheduled to complete 50% of the work by month 6, the PV at month 6 is $50,000.
If by month 6, the project has completed 40% of the work, the EV would be $40,000.
The difference between PV and EV helps assess project performance and forecast future performance.

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