What is EAC (estimate at completion)?

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

    Also written as EAC

    The simplest formula assumes current cost performance continues. Other methods assume the remaining work goes to budget, or factor in schedule performance as well. No formula replaces a bottom-up re-estimate when the basis of the work has changed.

    Comparing EAC with BAC gives the variance at completion: the forecast overrun or underrun.

    Formula

    EAC = BAC ÷ CPI (assuming current cost performance continues)

    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). With CPI of 1.055, EAC = $12m ÷ 1.055 ≈ $11.375 million.

    Related terms

    Estimate to complete

    ETC

    The forecast cost of the remaining work, from the reporting date to the end.

    Formula and example

    Variance at completion

    VAC

    The forecast difference between the budget and the final cost.

    Formula and example

    Cost performance index

    CPI

    Shows how much value of work is earned for each dollar spent.

    Formula and example

    Budget at completion

    BAC

    The total approved budget for the work being measured.

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