Skill and knowledge tests typically represent less than half of students' grades, whereas subjective evaluations of participation and effort, followed by attitude, skill, attendance, and dressing out represent the largest portion of the grade. More than half of all teachers use improvement as a basis for grading. However, improvement does not adequately reflect whether a student's performance level is competent. In order to improve current assessment practices and accurately inform students and others about their level of performance, PE Metrics was developed. PE Metrics is a series of valid, reliable, and useful assessments designed to measure student achievement of the national standards in physical education. This article explains what and how to grade using PE Metrics and presents three examples of grading procedures. (Contains 1 figure and 9 tables.)