Earned Value Management is important for the PMP Exam.  It measures the project by analyzing cost, and schedule data concurrently. It tells if the project is on cost and schedule and also helps in cost and schedule forecasting. Detail of earned value management is mentioned in the PMI's PMBOK guide. Understanding and remembering EVM Formulas by heart is essential for PMP certification exam prep.  

To help you understand EVM formulae better, here is a EVM formulae table, with their description. You should ensure you memorize these formulae well before appearing in the PMP exam.

Metric Abbrev Description Formula
Budget at Completion BAC Cost baseline for project.  
Actual Cost AC Total cost incurred.  
Earned Value EV Value of work completed so far, without considering actual cost.  
Planned Value PV Value of work planned that was scheduled to be completed at this stage.  
Cost Variance
CV Measurement of overrun in cost. It is variation between budget for work completed, and actual costs incurrred at this stage.
CV = EV – AC
Cost Performance Index
It is the project cost efficiency. CPI of 1 implies that cost is the same as budget for work completed at this stage. CPI less than 1 means project cost performance is not good.
Schedule Variance
Measurement of slippage in schedule. It is variation of budget for the work completed and budgeted cost of work scheduled.
SV = EV – PV
Schedule Performance Index
It is project schedule efficiency. SPI of 1 implies that project is on schedule. SPI less than 1 means project schedule performance is not good.
Estimate to Completion
It is anticipated additional costs required for project completion.
Estimate at Completion
Anticipated project cost that is based on existing cost efficiency ratio.
"EAC = Budget at Completion/Cost Performance Index
Variance at Completion
Estimated cost overrun at the end of project.
"VAC = Budget at Completion–Estimate at Completion

Study of these EVM definitions is valuable for the PMP exam prep, and are also mentioned in the PMBOK guide.

Also Read:

What is EVM and how EVM formulas are understood?