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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.

EAC is calculated as EAC = ACWP(cumulative) + ETC — what's already been spent, plus a fresh estimate of what it will take to finish. It's typically built up from Work Package-level estimates and rolled up to the total project. Unlike the original Budget at Completion (BAC), EAC reflects actual performance and current judgment, so it can move up or down as the project progresses.

Why it matters

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
EAC = ACWPcum + ETC; Variance at Completion (VAC = BAC - EAC); TCPI-EAC validation; Independent Estimate at Completion comparisons

FAQ

Is EAC the same as the Latest Revised Estimate (LRE)?
Yes — LRE is another name used for the same estimate-at-completion figure.
Why would EAC differ from the original Budget at Completion (BAC)?
Because EAC incorporates actual costs and performance to date, while BAC is the original approved budget — if a project is running over or under its planned efficiency, EAC will diverge from BAC accordingly.
Definition maintained by forProject Technology.
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