EAC: What is Estimate at Completion?

I have already done a video answering the question ‘What is Earned Value Management (EVM)?’ And often, the most important measure in EVM is the Estimate at Completion (EAC). So, in this video, I want to answer the question, what is the Estimate at Completion?

What is Earned Value Management - EVM?    • What is Earned Value Management - EVM...  

The Estimate at Completion is the expected total cost of your project, when all work is completed. So, if everything is running to budget and to schedule, your EAC is equal to your original Budget at Completion (BAC).

However, if your costs have drifted from plan, you can calculate your EAC from your Actual Cost of Work Performed (AC or ACWP) by adding to it your Estimate to Complete (ETC).

EAC = AC + ETC

So, how can you calculate your ETC?
The equations I discuss in the video are:

ETC = BAC - EV
ETC = (BAC - EV)/CPI
ETC = (BAC - EV)/(CPI x SPI)
ETC = ETC*


Recommended Videos
Carefully curated video recommendations for you:
🎬 What is Earned Value Management - EVM?
   • What is Earned Value Management - EVM...  
🎬 How to Estimate Project Costs: A Method for Cost Estimation
   • How to Estimate Project Costs: A Meth...  
🎬 What is a Discounted Cash Flow - DCF?
   • What is a Discounted Cash Flow - DCF?  
🎬 What to do When you get Pressure to Reduce Your Project Budget
   • What to do When you get Pressure to R...  
🎬 How to Anticipate Future Budget Challenges to Your Project
   • How to Anticipate Future Budget Chall...  


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https://kit.co/MikeClayton/what-a-pro...
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Chapter Markers...
00:00 - Estimate at Completion (EAC) is an important measure in Earned Value Management (EVM)
00:26 - Defining Estimate at Completion
01:05 - Your costs drift… You need an Estimate to Complete (ETC)
01:54 - The simplest way to calculate ETC
02:47 - Using CPI to calculate ETC
05:01 - A pessimistic approach to calculating ETC
05:58 - Precision versus Accuracy
06:22 - Calculate ETC with fresh assumptions
06:54 - Why do we have all these ways to calculate the EAC?

#EAC #ProjectManagement #EstimateAtCompletion