Many lists of project management KPIs give you dozens of definitions and then leave you to work out which ones to use and where the numbers come from, and that is before anyone asks what they mean together. A KPI on its own says little. A cost index of 0.91 only becomes useful when you can see why it moved and what the same project’s other numbers say.
This guide gives 20 project management KPIs with formulas and the data source for each, then calculates the main ones on a single sample project so you can see how they connect. You will also find advice on choosing a short list and spotting distorted KPIs, plus how to track them in actiTIME.
What is a KPI in project management?
A key performance indicator (KPI) is a measurable value that shows whether a project is meeting a goal that matters. Every KPI is a metric, but not every metric is a KPI. Hours logged last week is a metric. Actual hours against estimated hours is a KPI if staying within the estimate is what the project has to achieve.
Ask whether anyone would do something different if the number changed. If not, keep it as background data and leave it off the report.
Which project KPIs to choose
Start from what the project is accountable for, then pick five to seven KPIs that cover schedule, cost, and quality. A status report with 20 KPIs is hard to act on. Here is a reasonable first list for each of three common project types:
| Project type | Start with these KPIs | Why |
|---|---|---|
| Client project at a fixed price | CPI, estimate at completion, on time completion, change requests, customer satisfaction | Every extra hour comes out of your margin |
| Client project billed by the hour | Planned vs. actual hours, budget variance, utilization, rework rate, customer satisfaction | The client watches hours against the budget |
| Internal project | SPI, on time completion, overdue tasks, cost of management work, customer satisfaction | Dates and capacity matter more than revenue |
20 project management KPIs with formulas
These project management metrics are grouped by what they measure, and the last column shows where the data comes from. Most of these KPIs need only tasks, dates, tracked hours, and rates, so if your team logs time you already hold many of the inputs.
The earned value KPIs below use three inputs. Planned value (PV) is the budget for the work scheduled so far. Earned value (EV) is the budget for the work finished so far, calculated as percent complete times the budget. Actual cost (AC) is what that work really cost. The formulas follow PMI’s guidance on earned value.
Schedule KPIs
| KPI | Formula | Data source |
|---|---|---|
| 1. On time completion rate | Tasks or milestones finished on time ÷ total due × 100 | Task deadlines and completion dates |
| 2. Planned vs. actual hours | Actual hours ÷ estimated hours × 100 | Estimates and timesheets |
| 3. Schedule variance (SV) | EV − PV | Budget and percent complete |
| 4. Schedule performance index (SPI) | EV ÷ PV | Budget and percent complete |
| 5. Cycle time | Finish date − start date of a task | Task dates |
| 6. Lead time | Delivery date − request date | Request and delivery dates |
Cost KPIs
| KPI | Formula | Data source |
|---|---|---|
| 7. Budget variance | (Actual cost − budget) ÷ budget × 100 | Budget and cost of work |
| 8. Cost variance (CV) | EV − AC | Budget, percent complete, cost of work |
| 9. Cost performance index (CPI) | EV ÷ AC | Budget, percent complete, cost of work |
| 10. Estimate at completion (EAC) | Budget ÷ CPI | Budget and CPI |
| 11. Project margin | (Revenue − cost) ÷ revenue × 100 | Billing and cost of work |
| 12. Return on investment (ROI) | (Gain − cost) ÷ cost × 100 | Business case and project cost |
A CPI of 1.0 means work is costing what was budgeted, and PMI explains that a CPI of 0.83 means that for every dollar spent, only $0.83 of earned value was accomplished. The EAC above assumes that current cost performance continues, which PMI lists as one of several options. For margin and revenue measures in more depth, see our guide to project profitability metrics.
Team and workload KPIs
| KPI | Formula | Data source |
|---|---|---|
| 13. Utilization | Hours on the project ÷ available hours × 100 | Timesheets and work schedules |
| 14. Overdue tasks | Count of open tasks past their deadline | Task deadlines and statuses |
| 15. Change requests | Count of approved changes to scope | Change log |
| 16. Cost of management work | Cost of management hours ÷ total project cost × 100 | Timesheets by type of work |
Utilization has its own trade offs, covered in our guide to resource utilization metrics. A growing count of change requests can be an early sign of scope creep.
Quality KPIs
| KPI | Formula | Data source |
|---|---|---|
| 17. Rework rate | Hours on rework ÷ total hours × 100 | Timesheets by type of work |
| 18. Number of errors | Count of defects found after delivery | Client feedback or defect log |
| 19. Customer satisfaction | Average score on a post delivery survey | Survey |
| 20. Net Promoter Score (NPS) | % promoters (9 or 10) − % detractors (0 to 6) | Survey |
The NPS formula comes from Bain & Company. On one small project, a single response can move the score a long way, so it works better across many projects or clients.
Worked example: one sample project
Here is how the main KPIs work together. The project is illustrative: a website build with a budget of 800 hours at a blended cost rate of $75 an hour, so $60,000, over 10 weeks. Two people work on it full time. We check it at the end of week 6, when 60% of the work was due and the team reports 50% complete. It has logged 440 hours, of which 44 were rework, and 3 of 5 milestones were met on time.
One by one, these numbers say the project is behind and over budget, but together they point to a cause. Utilization of 92% means the team spent nearly all its available time on the project, so capacity is not the problem. The finished work took 40 hours more than budgeted, and rework took 44, which is enough to account for the whole overrun.
So the response changes. Adding people would raise cost without touching the cause, and the better first step is to find out why work is being redone, for example because of unclear requirements or late client feedback. Without the 44 rework hours, actual cost would be 396 × $75 = $29,700 and CPI would be $30,000 ÷ $29,700 = 1.01. For how numbers like these turn into a red, amber, or green report, see our guide to project status.
Leading and lagging KPIs
Lagging KPIs report what has already happened. Budget variance at the end of a project and customer satisfaction after delivery are lagging, and they arrive too late to change anything on that project. Leading KPIs give earlier warning. Rework rate, overdue tasks, change requests, and SPI can all move while there is still time to respond.
A good set uses lagging KPIs to judge the result and leading KPIs to steer while the work is under way. The team side of this is covered in our guide on how to measure team performance.
How project KPIs get distorted
Once a number is reported upward, there is pressure to make it look good. These are the distortions to watch for.
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Optimistic percent complete
Earned value depends on percent complete, so a generous estimate inflates CPI and SPI at once. Agree a rule in advance, for example counting only finished tasks.
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Padded estimates
If people are judged on planned vs. actual hours, estimates can grow. The KPI looks better while the budget gets worse. Compare estimates with your history for similar work.
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Resetting the baseline
Changing the baseline can make a late project look on track. PMI also notes that an SPI above 1.0 does not necessarily mean a project is ahead of schedule, so check the dates as well as the index.
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Counting easy tasks
An on time rate can be held up by small tasks while the one milestone that matters slips. Weight the rate toward milestones.
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Treating a target as the goal
If a team is rewarded only for hitting the date, quality can pay for it. Pair KPIs, such as on time completion with rework rate.
How to track project KPIs in actiTIME
Many of the KPIs above come down to hours and rates, so a team that logs time against tasks already has the raw data, and the table below shows which actiTIME report to use.
| KPI | Report | How to set it up |
|---|---|---|
| Utilization | Time-Track in Detail Report or Staff Performance Report | Group by project, then compare with available hours |
| Planned vs. actual hours | Estimated vs. Actual Time Report | Run it per project and compare periods |
| Budget variance | Cost of Work Report | Compare cost with the project budget |
| Project margin | Profit/Loss Report | Compare billable amounts with costs by project |
| Cost of management work | Chart in the Reports section | Show cost of work by type of work |
| Rework rate | Time-Track Report | Group by type of work, with a separate type for rework |
Run the same report for two periods to see whether a KPI is moving the right way. Task estimates and budgets are part of the paid versions and the free trial, and they are not in the permanent free version.
FAQ
What are the top 3 KPIs for project management?
If you can only track three, cover the three things a project is usually judged on: on time completion for schedule, CPI or budget variance for cost, and customer satisfaction for quality.
What are the 5 key metrics for project management?
A strong general set is on time completion, CPI, planned vs. actual hours, rework rate, and customer satisfaction. There is no official list, so adjust it to the project type.
What is the KPI for a project manager?
A project manager is usually measured on the results of the project: delivery against schedule, cost against budget, and client or stakeholder satisfaction. Keep these separate from team workload measures, which depend on more than the manager.
What is a good CPI or SPI?
A value of 1.0 means the project is on target, above 1.0 is favorable, and below 1.0 is unfavorable, according to PMI. Look at the trend as well, and check SPI against the actual dates near the end of a project.
How often should you review project KPIs?
Review the short list at the same rhythm as your status report, and look at the trend rather than a single reading.
Choose fewer KPIs, and read them together
Project management KPIs help when they change a decision. Pick five to seven that match the project type and have a clear data source, then read them as a set. In the sample project, one index said something was wrong, and the others showed where to look.
To get these numbers from your team’s real hours, start a free trial of actiTIME. It runs for 30 days with every feature included, and afterward you can keep the permanent free version for teams of up to 3 users.
