Estimate at Completion (EAC)
DE: Schaetzung bei Fertigstellung (EAC)
The expected total cost of the project when all work is complete.
Detailed Explanation
EAC is the expected total cost of completing all project work. There are multiple formulas depending on assumptions: EAC = BAC / CPI (past performance continues), EAC = AC + (BAC - EV) (original estimates still valid for remaining work), or EAC = AC + bottom-up ETC (re-estimate remaining work).
The choice of formula depends on what the PM believes about future performance. If current trends will continue, use BAC/CPI. If past issues are resolved and future work will be on budget, use AC + (BAC - EV). If a completely fresh estimate is needed, use bottom-up ETC.
EAC is one of the most important forecasting metrics in EVM. It answers the question stakeholders care about most: 'How much will this project cost when it is done?' Regular EAC updates enable proactive budget management.
Key Points
- Expected total cost at project completion
- Multiple formulas based on performance assumptions
- EAC = BAC/CPI (current trends continue)
- EAC = AC + (BAC-EV) (remaining work at original rate)
- EAC = AC + bottom-up ETC (fresh re-estimate)
- Most important cost forecasting metric
Practical Example
A project with BAC = EUR 1M: at month 8, AC = EUR 700K, EV = EUR 600K. CPI = 0.86. EAC = 1M/0.86 = EUR 1.16M. The PM also does a bottom-up ETC for remaining work = EUR 480K. EAC = 700K + 480K = EUR 1.18M. Both methods converge — the project will likely be EUR 160-180K over budget.
Tips for Learning and Applying
Calculate EAC using multiple formulas and compare results
If formulas diverge significantly, investigate why
Update EAC at least monthly and present trends
Use EAC vs. BAC to calculate Variance at Completion (VAC)
Want to Master These Concepts?
Our courses cover all these terms in depth with practical examples and exercises.