forProject Technology

Variance at Completion

Variance at Completion (VAC)

EVM Terms Reviewed by forProject Technology - updated Oct 2026
Quick definition: Variance at Completion (VAC) is the difference between the Budget at Completion (BAC) and the current approved Estimate at Completion (EAC). It shows whether the work is expected to finish over or under budget.

VAC = BAC - EAC. It's the current best estimate of whether the total job will cost more or less than budgeted. A positive VAC is favorable (expected to finish under budget). A negative VAC is unfavorable (expected to finish over budget).

What this means for you

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 project reviews because it projects all the way to the finish line.

Also known as
N/A
Used in
Estimate at Completion analysis

See also

Budget at Completion Estimate at Completion Cost Variance To Complete Performance Index - EAC

FAQ

What does a negative VAC mean?
The Estimate at Completion (EAC) is higher than the Budget at Completion (BAC), indicating that, unless things change, the work will overrun its budget.
How is VAC different from Cost Variance?
CV looks back: it compares Earned Value with Actual Cost for work performed so far. VAC looks ahead: it forecasts whether the estimated cost at completion will be over or under budget.
Definition maintained by forProject Technology.
© 2026 forProject Technology, Inc.
forProject