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Estimate at Completion

Estimate at Completion (EAC)

EVM Terms Reviewed by forProject Technology - updated Sep 2026
Quick definition: Estimate at Completion (EAC) is the projected total cost of all authorized work, equal to actual costs incurred to date plus the estimated cost to complete the remaining work.

The Estimate at Completion (EAC) is the current forecast of what the work will cost when it's finished. It's simple addition: the costs already incurred plus the latest estimate of the cost to finish the remaining work, or EAC = cumulative Actual Cost of Work Performed (ACWP) + Estimate to Complete (ETC). Past performance affects the EAC only indirectly, through the actual costs already recorded and through the judgment of the person preparing the ETC. Unlike the Budget at Completion (BAC), EAC changes whenever actual costs are recorded or the ETC is updated. It's typically built up from Work Package estimates and rolled up to higher levels.

What this means for you

EAC is the number management and customers watch most closely, because it answers the practical question of what the project will actually cost when it's done. Comparing EAC to BAC (via Variance at Completion) shows whether the project is trending toward a cost overrun or underrun well before completion.

Also known as
Latest Revised Estimate (LRE)
Used in
Variance at Completion; To Complete Performance Index - EAC comparisons; Independent Estimate at Completion comparisons

FAQ

Is EAC the same as the Latest Revised Estimate (LRE)?
Yes. LRE is another name for the same figure.
Why would EAC differ from the original Budget at Completion (BAC)?
EAC reflects actual costs to date (ACWP) and a forecast of remaining cost (ETC), while BAC is the original approved budget. EAC will change depending upon actual expenditures and the latest updated forecast of the remaining costs.
Definition maintained by forProject Technology.
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