Earned revenue to total expenses

Definition

Used in Management of large projects where revenue arrives at a different rate than the expenses of the project. This measures whether the "earned revenue" (the work completed on a project) is sufficient to cover the company's expenses during the period. "Earned Revenue" is defined by multiplying the project % complete (expenses incurred during the period to the project budget) by the total revenue the project will earn.

Formula

Tags

project, expense, budget

Metadata

Category: Earned Value Management · Added: May 17, 2026