What is VAC?

VAC (Variance at Completion) is a project management metric that reflects the difference between the planned project budget and the actual costs at the time of completion. In simpler terms, VAC shows how much the project will go over or under budget.

Formula:

VAC = BAC - EAC

where:

• BAC (Budget at Completion) — the planned project budget;
• EAC (Estimate at Completion) — the current estimate of the project cost at completion.

If VAC is positive, the project is likely to be completed under budget; if negative, it will be over budget.

Example: If the project budget (BAC) is 1,000,000 rubles, and the current cost estimate (EAC) is 1,100,000 rubles, then

VAC = 1,000,000 - 1,100,000 = -100,000

This means the project is expected to overspend by 100,000 rubles.