During a status meeting, the project manager apprised the team that the project has spent a total of $7,500 to date and that the earned value is $5,000. How is the project currently carrying out?

To calculate the project’s performance using the information provided, you can use the cost performance index (CPI) earned value calculation. The formula for calculating CPI is CPI = EV ÷ AC. Plug in the values to calculate the following:
$5,000 ÷ $7,500 = $0.67.
A CPI of less than 1 means that the project is performing over budget.