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Estimate At Completion (EAC)

Definition

Estimate at Complete (EAC) is the expected total cost of completing all work ( schedule activity, a work breakdown structure component, or the project) expressed as the sum of the actual cost to date and the estimate to complete. The EAC is calculated as ETC + ACWP.

Statistics

Formulas

1. BAC / CPI  — if CPI remains the same

  • BAC = Budget at completion
  • CPI = Cost performance index

2. AC + ETC — Initial Estimates are flawed

  • AC = Actual Cost
  • New ETC = New Estimate to Completion

3. AC + BAC – EV — if BAC remains the same

  • AC = Actual Cost
  • BAC = Budget at completion
  • EV = Earned Value

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