When to use it
Use it to challenge whether recovery to the budget is credible.
If the remaining budget is zero or negative, this ratio does not provide a meaningful recovery target.
- Define the scope, status date and units before collecting the inputs.
- Substitute the values into the formula and retain their units.
- Interpret the result against the assumptions and decide what evidence or action is needed next.
Formula & inputs
The numerator is the budgeted value of unfinished work; the denominator is the unspent work budget.
Worked example
A delivery project has budget at completion of €900,000. At the same status date, planned value is €450,000, earned value is €360,000 and actual cost is €400,000. All values use the same scope and price basis.
The remaining work must be more efficient than the original plan. Ask what will actually change to support that improvement.
Common pitfall
A target ratio is not a recovery plan. If using an approved revised target, name that denominator explicitly.
Source & related material
Standard quantitative technique; this explanation is by fannarmaximus. No single inventor is claimed. The arithmetic is computed from explicit inputs, not copied from an official sample question.