{"id":68127,"date":"2023-09-28T14:00:23","date_gmt":"2023-09-28T19:00:23","guid":{"rendered":"https:\/\/www.projectmanager.com\/?p=68127"},"modified":"2026-04-28T14:48:04","modified_gmt":"2026-04-28T19:48:04","slug":"project-metrics","status":"publish","type":"post","link":"https:\/\/www.projectmanager.com\/blog\/project-metrics","title":{"rendered":"Top Project Metrics You Need to Track"},"content":{"rendered":"

To ensure that your project is meeting scheduling and budget milestones, you need to have project metrics to measure your progress and performance. Project metrics are essential to delivering a project on time and within its budget.<\/p>\n

But what are project metrics? Why are they so important to a project? We\u2019ll answer those questions and show you some examples of common project metrics. Then we\u2019ll explain what a project metrics dashboard is and why it\u2019s one of the essential project management software features.<\/p>\n

What Are Project Metrics?<\/h2>\n

Project metrics are data pulled from the performance of the project. They are data sets, formulas and calculations that provide measurements to chart progress, success and much more. Project managers use project metrics to compare their actual effort against their plan so they know if they\u2019re on schedule and keeping to their budget.<\/p>\n

They can also be used to keep project stakeholders informed, though they’re usually only interested in two project metrics: time and cost. Project metrics are also tools that help organizations find, reduce and alleviate risks as well as inform effective strategic development, continuous improvement and even employee and customer sentiment.<\/p>\n

Project management software makes gathering and calculating project metrics easier. ProjectManager<\/a> <\/strong>is award-winning project management software that has real-time dashboards that automatically gather six types of project metrics and display them in easy-to-read graphs and charts. Unlike other project management software, our live dashboard doesn\u2019t take forever to set up. All you have to do is toggle over for a high-level overview of the project. It\u2019s ready with real-time data for more insightful decisions whenever you are. Get started with ProjectManager today for free.<\/p>\n

\"ProjectManager's<\/a>
ProjectManager has real-time dashboards that capture six project metrics. Learn more<\/strong><\/a><\/figcaption><\/figure>\n

Why Are Project Metrics Important?<\/h2>\n

Project metrics are important for project management. Without them, you\u2019re driving blind, with no way to accurately measure if you\u2019re keeping to your schedule and budget. They’re used to define a project\u2019s health, progress and performance.<\/p>\n

All projects hit bumps in the road, but project metrics help you get back on track faster. That\u2019s because you know you\u2019ve gone off the road quicker and can reallocate resources<\/a> as needed to get back on track faster.<\/p>\n

There would be no way to know if you\u2019re meeting project goals without project metrics until the very end of the project. At that point, it\u2019s too late. Metrics improve performance which will positively impact an organization\u2019s bottom line.<\/p>\n

Organizations can see the return on investment (ROI) of their projects. They can use project metrics as the data that drives their decision-making process<\/a>. That leads to better prediction of future outcomes and allows organizations to adjust their business strategies to stay competitive.<\/p>\n

Project Management Metrics Examples<\/h2>\n

So what are some examples of project metrics? There are many, but we\u2019ll define some of the more common ones that are tracked when managing a project. Use these project metrics to keep track of your project<\/a> and make sure you deliver it successfully, on time and within budget.<\/p>\n

1. Net Profit Margin<\/h3>\n

The net profit margin is the measurement of an organization\u2019s net earnings after the expenses have been accounted for, including its interest and tax payments. In terms of measuring a project\u2019s profitability<\/a>, the net profit margin is a useful project metric for keeping track of the budget against the actual spending at that point in the project.<\/p>\n

2. Gross Profit Margin<\/h3>\n

The term gross profit margin is a financial project metric that project managers use to assess the project\u2019s financial health. To get the gross profit margin, subtract the direct expenses or cost of goods sold (COGS) from net sales, which is the gross revenues minus returns, allowances and discounts. That number is divided by net revenues, then multiplied by 100 percent. The project with the higher gross margin is more profitable because it generates more profits and incurs fewer costs<\/a>.<\/p>\n

3. Return on Investment (ROI)<\/h3>\n

The return on investment is used to determine if the project is going to be worth the time and effort necessary to deliver it. It basically calculates the amount of money that has to be spent and the amount of money or benefits that will result from a successful delivery of the project. ROI is expressed as a percentage and is calculated by dividing an investment\u2019s net profit (or loss) by its initial cost or outlay.<\/p>\n

3. Cost Variance (CV)<\/h3>\n

The project metric cost variance is used to evaluate the financial performance of your project. It does this by determining the difference between the budgeted cost of work performed (BCWP) and the actual cost of work performed (ACWP). In other words, by comparing the current costs of the project to where the budget says you should be at this point in the project. If the two figures are the same, then you\u2019re on the right track. However, if you\u2019re spending more than you\u2019ve budgeted for at that point in the project, then you have to adjust either the project scope<\/a> or schedule to get back on track.<\/p>\n

4. Schedule Variance (SV)<\/h3>\n

Just as cost variance tracks the financial performance of the project, schedule variance is used to figure out how much a project is ahead of schedule or behind schedule. It does this by measuring the actual progress of the project and comparing that to the expected progress, according to the project schedule. As with cost variance, if the project is behind schedule, then the scope or budget of the project has to be adjusted.<\/p>\n

\n\t
\n\t\t\"\"\t<\/div>

Get your free<\/p>\n

Budget Proposal Template<\/h3>\n

\n\tUse this free Budget Proposal Template for Excel to manage your projects better.<\/p>\n\t\t