{"id":1160,"date":"2022-09-27T14:08:00","date_gmt":"2022-09-27T14:08:00","guid":{"rendered":"https:\/\/plaky.com\/learn\/?p=1160"},"modified":"2026-02-11T07:19:01","modified_gmt":"2026-02-11T07:19:01","slug":"eac-in-project-management","status":"publish","type":"post","link":"https:\/\/plaky.com\/learn\/pt\/project-management\/eac-in-project-management\/","title":{"rendered":"Estimate at Completion (EAC): Definition, Formula, and Examples"},"content":{"rendered":"\n<p class=\"translation-block\">Project managers use estimate at completion (EAC) as a method of estimating total project costs while the project is ongoing. EAC helps them spot deviations from the initial assessments and adjust the budget accordingly when necessary.<\/p>\n\n\n\n<p class=\"translation-block\">EAC is a great tool in project management, and it can be calculated in various ways, based on the current project circumstances.<\/p>\n\n\n\n<p class=\"translation-block\">Find out what to do when you have a project with varying costs on your hands and how to forecast the necessary budget on time.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"600\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover.png\" alt=\"EAC in project management - cover\" class=\"wp-image-6763\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover.png 1200w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover-300x150.png 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover-1024x512.png 1024w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover-768x384.png 768w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover-18x9.png 18w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/EAC-in-project-management-cover-120x60.png 120w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list key-takeaways\">\n<li class=\"translation-block\">EAC is used for project cost forecasting and calculated when the project is already in progress.<\/li>\n\n\n\n<li class=\"translation-block\">There are 4 different ways to calculate EAC, depending on the current project circumstances.<\/li>\n\n\n\n<li class=\"translation-block\">A major benefit of using EAC in project management is that it helps pinpoint cost and schedule deviances early on.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"what-is-the-estimate-at-completion-eac-in-project-management\" class=\"wp-block-heading translation-block\">What is the estimate at completion (EAC) in project management?&nbsp;<\/h2>\n\n\n\n<p class=\"translation-block\"><strong>Estimate at completion (EAC) is a forecasting technique <\/strong><strong>project managers<\/strong><strong> use to determine the project cost at its completion while the project is in progress.<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">Sometimes, projects don\u2019t progress as planned, and the actual costs are higher than anticipated.<\/p>\n\n\n\n<p class=\"translation-block\">This technique considers variables such as unexpected costs and inaccurate early estimates in its calculation.<\/p>\n\n\n\n<p class=\"translation-block\">As the project progresses, it\u2019s important to develop accurate cost forecasts of the remaining workload and estimate the final project cost.<\/p>\n\n\n\n<p class=\"translation-block\">\n<div class=\"banner banner-dark plaky-gradient-landing-2\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Free project management software<\/h2>\n        <p class=\"translation-block !text-sm\">Streamline your business \u2014 Improve planning, align teams, finish tasks, with Plaky.<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/plaky.com\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"how-to-calculate-eac\" class=\"wp-block-heading translation-block\">How to calculate EAC<\/h2>\n\n\n\n<p class=\"translation-block\">There are 4 ways to calculate EAC in <a href=\"https:\/\/plaky.com\/learn\/project-management\/what-is-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management<\/a>, depending on the circumstances of the project.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Formula<\/th><th class=\"has-text-align-left\" data-align=\"left\">When to use<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">EAC = AC + ETC<\/td><td class=\"has-text-align-left\" data-align=\"left\">The initial forecast is no longer viable.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EAC = BAC \/ CPI<\/td><td class=\"has-text-align-left\" data-align=\"left\">The project is performing as planned.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EAC = AC + (BAC \u2013 EV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">The project is expected to meet the estimated budget.<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">EAC = AC + (BAC \u2013 EV) \/ (CPI \u00d7 SPI)<\/td><td class=\"has-text-align-left\" data-align=\"left\">Both cost and schedule affect the project budget.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">Let\u2019s explore all 4 formulas and see which data you need to use for each.<\/p>\n\n\n\n<h3 id=\"eac-formula-1\" class=\"wp-block-heading translation-block\">EAC formula #1<\/h3>\n\n\n\n<p class=\"translation-block\">This formula is ideal when you need to change your plans entirely because:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Your current project performance differs significantly from the planned performance, and<\/li>\n\n\n\n<li class=\"translation-block\">The initial estimates are flawed and no longer applicable.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Here\u2019s this variation of the EAC formula:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">EAC = AC + bottom-up ETC<br><\/p>\n\n\n\n<p class=\"translation-block\">The actual cost (AC) is the sum of the real costs incurred up to a certain point of project development.<\/p>\n\n\n\n<p class=\"translation-block\">Meanwhile, the estimate to complete (ETC) forecasts the necessary funds to complete the remaining project work. Using a <a href=\"https:\/\/plaky.com\/blog\/project-management-budgeting-methods\/\" target=\"_blank\" rel=\"noreferrer noopener\">bottom-up method<\/a> means every member of the project team has to estimate the cost of their remaining work.<\/p>\n\n\n\n<p class=\"translation-block\">The main difference between ETC and EAC is the range of costs they cover. ETC sums up only the costs of the remaining project work while EAC estimates the total costs of the project from start to finish.<\/p>\n\n\n\n<p class=\"translation-block\">Let\u2019s illustrate this formula with an example.<\/p>\n\n\n\n<p class=\"translation-block\">Suppose your project budget is $150,000. Your team has completed 40% of the project work against 50% of the planned work and has spent $85,000 by now.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Measure<\/th><th class=\"has-text-align-left\" data-align=\"left\">Value<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Budget at completion (BAC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$150,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Earned value (EV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">40%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Planned value (PV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">50%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Actual cost (AC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$85,000&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">The project costs are high for the amount of work performed, so you need to determine the cost for each remaining <a href=\"https:\/\/plaky.com\/blog\/project-activities\/\" target=\"_blank\" rel=\"noreferrer noopener\">project activity<\/a> and add ETC to the actual costs.<\/p>\n\n\n\n<p class=\"translation-block\">After discussing the remaining work with the team and project stakeholders, you conclude that the sum of the remaining costs (ETC) is $112,000.<\/p>\n\n\n\n<p class=\"translation-block\">Now, you can use this value to calculate EAC.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EAC = AC + Bottom-up ETC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $85,000 + $112,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $197,000<\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">This means that instead of the planned $150,000, you\u2019ll need $197,000 to complete your project under new circumstances.<\/p>\n\n\n\n<h3 id=\"eac-formula-2\" class=\"wp-block-heading translation-block\">EAC formula #2<\/h3>\n\n\n\n<p class=\"translation-block\">If the performance is going as planned, use the following formula to calculate EAC:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">EAC = BAC \/ CPI<br><\/p>\n\n\n\n<p class=\"translation-block\">The budget at completion (BAC) is the sum of all budgets allocated to the project work. It\u2019s the total planned value of the project, determined at the beginning of the project and based on the project work.<\/p>\n\n\n\n<p class=\"translation-block\">The difference between BAC and EAC is that the former sums the budget for the entire project before it begins, while the latter estimates the project\u2019s final cost when the project is already underway. If EAC is higher than BAC, your project exceeds the planned costs, and vice versa.<\/p>\n\n\n\n<p class=\"translation-block\">The <a href=\"https:\/\/plaky.com\/learn\/project-management\/cpi-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost performance index<\/a> (CPI) measures the project\u2019s cost efficiency by dividing earned value by actual cost. The result shows how the project is performing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">CPI &lt; 1 \u2014 the project is over budget.<\/li>\n\n\n\n<li class=\"translation-block\">CPI = 1 \u2014 the project is performing on budget.<\/li>\n\n\n\n<li class=\"translation-block\">CPI &gt; 1 \u2014 the project is under budget.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">Let\u2019s see another example.<\/p>\n\n\n\n<p class=\"translation-block\">Say your project budget is $85,000. Your team has completed 45% of the project against the 55% of planned work and has spent $40,000 by now. You assume CPI will remain the same until the end of the project.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Measure<\/th><th class=\"has-text-align-left\" data-align=\"left\">Value<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Budget at completion (BAC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$85,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Earned value (EV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">45%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Planned value (PV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">55%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Actual cost (AC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$40,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">First, let\u2019s calculate the cost performance index:<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">CPI = EV \/ AC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">CPI = (45 x $85,000 \/ 100) \/ $40,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">CPI = $38,250 \/ $40,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">CPI = 0.95625<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Since the CPI is below 1, we can conclude that the project is performing over the budget.<\/p>\n\n\n\n<p class=\"translation-block\">So, let\u2019s calculate the new budget.<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EAC = BAC \/ CPI<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $85,000 \/ 0.95625<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $88,888<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">This means you will need $88,888 instead of the planned $85,000 to complete your project under new circumstances.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block\">\ud83d\udca1 <strong>Plaky Pro Tip<\/strong><\/p>\n\n\n\n<p class=\"translation-block\">To make sure project funds last, project accountants can use EAC, BAC, and many other metrics to track expenditures. To learn more about project accounting in general, read this guide:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/plaky.com\/learn\/project-management\/project-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Project Accounting?<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"eac-formula-3\" class=\"wp-block-heading translation-block\">EAC formula #3<\/h3>\n\n\n\n<p class=\"translation-block\">This formula is appropriate when the <a href=\"https:\/\/plaky.com\/learn\/project-management\/what-project-managers-do\/\" target=\"_blank\" rel=\"noreferrer noopener\">project manager<\/a> believes the project will perform according to the budgeted rate moving forward, regardless of its prior performance.<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">EAC = AC + (BAC \u2013 EV)<\/p>\n\n\n\n<p class=\"translation-block\">Earned value (EV) measures the project\u2019s progress and performance by multiplying the percentage of completed work by the budget at completion. When the project is performing well, <a href=\"https:\/\/plaky.com\/learn\/project-management\/earned-value-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">earned value<\/a> equals the planned value.<\/p>\n\n\n\n<p class=\"translation-block\">To illustrate, suppose your project budget is $100,000. Your team has completed 50% of the project work against 40% of the planned work and has spent $50,000 by now. You also believe your <a href=\"https:\/\/plaky.com\/learn\/project-management\/project-roles\/\" target=\"_blank\" rel=\"noreferrer noopener\">project team<\/a> will accomplish the remaining work at the budgeted rate.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Measure<\/th><th class=\"has-text-align-left\" data-align=\"left\">Value<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Budget at completion (BAC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$100,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Earned value (EV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">50%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Planned value (PV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">40%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Actual cost (AC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$50,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">First, you need to find out the project\u2019s earned value:<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EV = % of work completed x BAC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EV = 50% x $100,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EV = $50.000<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Now, you can calculate the estimate at completion (EAC).<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EAC = AC + (BAC &#8211; EV)<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $50,000 + ($100,000 &#8211; $50.000)<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = BAC = $100,000<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">In this case, you can expect the project to be completed within the planned budget, as the estimate at completion is the same as the budget at completion.<\/p>\n\n\n\n<p class=\"custom-btn translation-block\"><a href=\"https:\/\/app.plaky.com\/signup\">Try Plaky for free<\/a><\/p>\n\n\n\n<h3 id=\"eac-formula-4\" class=\"wp-block-heading translation-block\">EAC formula #4<\/h3>\n\n\n\n<p class=\"translation-block\">The fourth way you can calculate EAC is appropriate for situations where both the cost and the schedule influence the remaining project work.<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block\" style=\"background-color:#e5f6fe\">EAC = AC + (BAC \u2013 EV) \/ (CPI \u00d7 SPI)<\/p>\n\n\n\n<p class=\"translation-block\">The <a href=\"https:\/\/plaky.com\/learn\/project-management\/spi-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">schedule performance index<\/a> (SPI) shows whether the project is straying from its planned schedule. Based on its value, we can tell the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">SPI &gt; 1 \u2014 the project is ahead of schedule.<\/li>\n\n\n\n<li class=\"translation-block\">SPI &lt; 1 \u2014 the project is behind schedule.<\/li>\n\n\n\n<li class=\"translation-block\">SPI = 1 \u2014 the project is on schedule.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block\">For example, suppose your project budget is $250,000. Your team has completed 25% of the project against the 35% of the planned work and has spent $75,000 by now. In addition, both CPI and SPI influence the remaining workload.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Measure<\/th><th class=\"has-text-align-left\" data-align=\"left\">Value<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\">Budget at completion (BAC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$250,000<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Earned value (EV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">25%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Planned value (PV)<\/td><td class=\"has-text-align-left\" data-align=\"left\">35%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Actual cost (AC)<\/td><td class=\"has-text-align-left\" data-align=\"left\">$75,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"translation-block\">First, you need to figure out the earned value:<\/p>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EV = % of completed work x BAC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EV = 25% x 250,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EV = $62,500<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Then, you should determine the planned value:<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">PV = % of project completed (planned) x BAC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">PV = 35% x 250,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">PV = $87,500<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Afterward, you have to figure out the cost performance index (CPI):<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">CPI = EV \/ AC<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">CPI = 62,500 \/ 75,000<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">CPI = 0.83<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">Finally, you should calculate the schedule performance index (SPI).<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">SPI = EV \/ PV<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">SPI = 62,500 \/ 87,500<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">SPI = 0.71<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">The SPI value tells us the project is behind schedule.<\/p>\n\n\n\n<p class=\"translation-block\">Now that you have all the necessary values, you can go ahead and calculate the EAC.<\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#e5f6fe\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center translation-block\">EAC = AC + (BAC \u2013 EV) \/ (CPI \u00d7 SPI)<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = 75,000 +&nbsp; (250,000\u2013 62.500) \/ (0.83 \u00d7 0.71)<\/p>\n\n\n\n<p class=\"has-text-align-center translation-block\">EAC = $393,174.10<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block\">As you can see, you will need $393,174.10 to finish your project, which is significantly higher than your BAC of $250,000. The project is therefore both behind schedule and over budget.<\/p>\n\n\n\n<p class=\"has-background translation-block\" style=\"background-color:#e5f6fe\">\ud83d\udcd6 If you found this guide helpful, head on over to our <a href=\"https:\/\/plaky.com\/learn\/glossary\/\" target=\"_blank\" rel=\"noreferrer noopener\">Project Management Glossary of Terms<\/a> to learn about the other elements of earned value management, or browse the list for more project management topics that might interest you.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block\">\n<div class=\"banner banner-dark plaky-gradient-landing-1\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Free project management software<\/h2>\n        <p class=\"translation-block !text-sm\">Take control of your team's workload and achieve better project results with Plaky.<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.plaky.com\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/plaky.com\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-bottom \">\n        <picture>\n            <source srcset=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-1@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-1.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"benefits-of-applying-eac\" class=\"wp-block-heading translation-block\">Benefits of applying EAC<\/h2>\n\n\n\n<p class=\"translation-block\">The benefits of using EAC as a forecasting tool are mostly tied to your ability to detect budget issues early on and fix them on time.<\/p>\n\n\n\n<p class=\"translation-block\">Here\u2019s an overview of the positive sides of using EAC in project management:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>Early issue detection<\/strong> \u2014 When the project manager notices a deviation from the planned values, they can take immediate action. That way, it\u2019s easier to prevent larger issues that can affect the project\u2019s delivery on time and within budget.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Tight budget and schedule control<\/strong> \u2014 If management tracks all the parameters we described, they\u2019ll identify where <a href=\"https:\/\/plaky.com\/blog\/cost-overrun\/\" target=\"_blank\" rel=\"noreferrer noopener\">cost overruns<\/a> happen and know exactly what to focus on.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Transparency<\/strong> \u2014 Projects rarely go according to plan, but finding out what will cost more and which project activities may take more time lets project managers communicate more openly with <a href=\"https:\/\/plaky.com\/learn\/project-management\/stakeholder-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">project stakeholders<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"track-your-projects-performance-with-plaky\" class=\"wp-block-heading translation-block\">Track your project\u2019s performance with Plaky<\/h2>\n\n\n\n<p class=\"translation-block\">If you want to keep all project cost information in one place, we recommend trying a project management app like <a href=\"https:\/\/plaky.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Plaky<\/a>.<\/p>\n\n\n\n<p class=\"translation-block\">With Plaky, you\u2019ll get a more intuitive and user-friendly alternative to spreadsheets that allows you to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Jumpstart your projects fast using a variety of useful <a href=\"https:\/\/plaky.com\/templates\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management templates<\/a>,<\/li>\n\n\n\n<li class=\"translation-block\">Organize your project tasks with <a href=\"https:\/\/plaky.com\/features\/fields\" target=\"_blank\" rel=\"noreferrer noopener\">customizable fields<\/a>,<\/li>\n\n\n\n<li class=\"translation-block\">Distribute and assign tasks within your project team,<\/li>\n\n\n\n<li class=\"translation-block\">Add tags to <a href=\"https:\/\/plaky.com\/features\/items\" target=\"_blank\" rel=\"noreferrer noopener\">items<\/a> to specify responsible departments,<\/li>\n\n\n\n<li class=\"translation-block\">Track expenses in several currencies, and<\/li>\n\n\n\n<li class=\"translation-block\">Collaborate and communicate with team members through <a href=\"https:\/\/plaky.com\/features\/comments\" target=\"_blank\" rel=\"noreferrer noopener\">comments<\/a>.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"473\" src=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky-1024x473.png\" alt=\"A single project board in Plaky\" class=\"wp-image-6766\" srcset=\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky-1024x473.png 1024w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky-300x139.png 300w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky-768x355.png 768w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky-18x8.png 18w, https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/09\/A-single-project-board-in-Plaky.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Example of a project board in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"translation-block\">Managing projects is <em>so<\/em> much easier when you can involve the whole team and easily share information. And with Plaky, you get a centralized hub for all your activities and efficient progress tracking.<\/p>\n\n\n\n<p class=\"translation-block\"><em>Enjoy effortless project management with Plaky. Create an account today and try all Plaky features for free.<\/em><\/p>\n\n\n\n<p class=\"custom-btn translation-block\"><a href=\"https:\/\/app.plaky.com\/signup\">Get started with Plaky<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Estimate at completion (EAC) is a forecasting tool used to evaluate the project\u2019s budget while it\u2019s still in progress. Discover all the ways you can calculate it.<\/p>","protected":false},"author":8,"featured_media":6763,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,4],"tags":[],"class_list":["post-1160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advanced-terminology","category-project-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/comments?post=1160"}],"version-history":[{"count":57,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1160\/revisions"}],"predecessor-version":[{"id":11623,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/posts\/1160\/revisions\/11623"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/media\/6763"}],"wp:attachment":[{"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/media?parent=1160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/categories?post=1160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/plaky.com\/learn\/pt\/wp-json\/wp\/v2\/tags?post=1160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}