Variance at Completion (VAC)
EVM Terms
Reviewed by forProject Technology - updated Sep 2026
Quick definition: Variance at Completion (VAC) is the difference between the Budget at Completion (BAC) and the current approved Estimate at Completion (EAC), showing whether a project is expected to finish over or under budget.
VAC is calculated as VAC = BAC - EAC and represents the current best estimate of whether the total job will cost more or less than originally planned. A positive VAC is favorable (expected to finish under budget); a negative VAC is unfavorable (expected to finish over budget).
Why it matters
VAC gives management an early, forward-looking read on the ultimate cost outcome, rather than just where costs stand today. It's one of the most closely watched numbers in program reviews because it projects all the way to the finish line.
Also known as
N/A
Used in
Estimate at Completion analysis (VAC = BAC - EAC)
FAQ
What does a negative VAC mean?
The project is currently expected to finish over budget compared to the original Budget at Completion.
How is VAC different from Cost Variance?
Cost Variance measures the cost gap for work performed so far, while VAC projects that gap all the way out to the end of the project.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
© 2026 forProject Technology, Inc.
