What is EAC and its formulas?

EAC (Estimate at Completion) — is the projected total cost of the project at its completion, considering current costs and progress.

Main formulas for EAC:

1. If it is assumed that future costs will follow the plan:

EAC = BAC / CPI

where:

• BAC (Budget at Completion) — the budget for project completion
• CPI (Cost Performance Index) — the cost efficiency index (EV / AC)

2. If it is assumed that future costs will follow current efficiency:

EAC = AC + (BAC - EV)

3. If both cost and schedule efficiencies are considered:

EAC = AC + [(BAC - EV) / (CPI * SPI)]

where:

• AC (Actual Cost) — actual costs
• EV (Earned Value) — earned value
• SPI (Schedule Performance Index) — schedule performance index

The choice of formula depends on assumptions about the project's future course.