How to Calculate ACWP

by Charlotte Johnson; Updated September 26, 2017
Money

The acronym ACWP stands for "actual cost of work performed." This term applies to the total costs of a certain type of work over a period time. Total costs include direct and indirect costs. Being able to calculate ACWP is essential to budgeting for a business and managing a project effectively.

Step 1

Add all direct costs. Direct costs are expenses that relate exclusively to a specific project. For instance, if your company is implementing a community youth after-school project for six months, you would add all of the salaries, supplies, employee benefits and utilities specifically related to that project.

Step 2

Add all indirect costs. Indirect costs are those expenses that are incurred as a result of multiple projects. For instance, you may have some employees who are working with the after-school project as well as other projects. Their salaries and benefits would be indirect costs. You may have a building facility that is used for the after-school project on certain days and for other projects on other days. The utilities and rent for this building would be indirect costs.

Step 3

Add your direct cost total to your indirect cost total in order to find the actual cost of work performed (ACWP).

About the Author

Charlotte Johnson is a musician, teacher and writer with a master's degree in education. She has contributed to a variety of websites, specializing in health, education, the arts, home and garden, animals and parenting.

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