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What is a Cost Performance Index?

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Cost performance index is a project metric calculated as the ratio of earned value to actual cost. This is calculated as:
cost performance index = earned value / actual cost
Earned value is defined as the authorized budget for work completed for a project. Actual cost represents the total project expenditures to date. The cost performance index is a measure of the cost efficiency of a project. In other words, it indicates if you're over budget.
Overview: Cost Performance Index
The ratio of earned value to actual cost for a project.
Also known as
A project has spent $1 million dollars and completed work associated with an authorized budget of $800,000. Resulting in a cost performance index of 800,000:1,000,000 or 0.8.
Any measure below 1 indicates a lag between spending and delivery of work. This can be interpreted as being currently over budget.
A measure above 1 indicates work is being delivered faster than money is being spent. This can be interpreted as being currently under budget.
A measure of the value delivered for project expenditures.
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