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Independent Estimate at Completion

Independent Estimate at Completion (IEAC)

EVM Terms Reviewed by forProject Technology - updated Oct 2026
Quick definition: An Independent Estimate at Completion (IEAC) is a cost forecast calculated using a standard formula based on past performance, used to sanity-check the manager's own Estimate at Completion (EAC).

Independent Estimates at Completion (IEACs) are formula-based estimates of cost at completion, calculated from performance indices, that can be compared against the manager's Estimate at Completion (EAC) to evaluate whether the EAC is realistic. Different IEACs use selected performance metrics, such as the cumulative Cost Performance Index (CPI), the cumulative Schedule Performance Index (SPI), and the six-period average CPI, to develop these independent estimates.

What this means for you

Comparing one or more IEACs against the manager's EAC helps a Project Manager judge whether that EAC looks reasonable or deserves closer scrutiny. A gap doesn't necessarily mean the manager's estimate is wrong, but a large one is usually a signal to dig deeper.

Also known as
IEAC
Used in
Estimate at Completion comparisons

FAQ

Does a different IEAC mean the manager's EAC is wrong?
Not necessarily. A gap between the two just suggests further analysis or discussion may be warranted, since the manager's EAC may account for factors a formula-based estimate can't capture.
What does the IEAC = BAC/CPI formula assume?
It assumes the remaining work will be performed at the same cost efficiency (CPI) achieved so far.
Definition maintained by forProject Technology.
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