The CPI Project Management Formula is a tool used to measure project performance and determine the success or failure of a project. This formula, also known as the Cost Performance Index (CPI), measures how efficiently money is being spent in relation to the desired outcome of the project.
The CPI Project Management Formula is calculated by dividing a project’s actual cost by its earned value. A CPI score of 1.00 indicates that the budget has been used efficiency and indicates success. If the value is higher than 1, it means the budget has not been managed effectively and the project will likely result in a loss. Conversely, if the value is lower than 1 then the project is successful and has kept within its budget.