What is BAC (budget at completion)?

    Budget at completion is the total approved budget for the work being measured. It is the figure every earned value calculation is measured against.

    Also written as BAC

    BAC normally comes from the approved cost baseline. It excludes contingency that hasn't been allocated to work, so a project's BAC and its total approved funding are often different numbers.

    When approved changes add or remove scope, the BAC changes with them. Comparing performance against an out-of-date BAC makes every index that depends on it misleading.

    Worked example

    A project has a $12 million budget (BAC). At the reporting date, $5.2 million of work was planned (PV), $4.8 million has been earned (EV) and $4.55 million has been spent (AC). BAC is $12 million.

    Related terms

    Planned value

    PV

    The budgeted value of the work that was scheduled to be done by a given date.

    Estimate at completion

    EAC

    The forecast total cost of the work when it's finished, based on performance so far and what's left to do.

    Formula and example

    Variance at completion

    VAC

    The forecast difference between the budget and the final cost.

    Formula and example

    Contingency

    Budget set aside for risks and uncertainty within the agreed scope.

    NextPV (Planned value)

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