{"id":107404,"date":"2022-09-17T05:28:19","date_gmt":"2022-09-17T05:28:19","guid":{"rendered":"https:\/\/monday.com\/blog\/?p=107404"},"modified":"2026-09-19T08:27:48","modified_gmt":"2026-09-19T13:27:48","slug":"estimate-at-completion-eac","status":"publish","type":"post","link":"https:\/\/monday.com\/blog\/project-management\/estimate-at-completion-eac\/","title":{"rendered":"What is estimate at completion (EAC)? Formulas, examples, and project tracking for 2026"},"content":{"rendered":"<div class=\"text-block\" id=\"text-block-1\">\n<p>Most project budgets don&#8217;t fail in one dramatic moment. They drift. A delayed shipment here, a scope change there, until the final cost sits well above the plan. Estimate at completion (EAC) is the forecasting metric that catches that drift early, giving you a running prediction of what a project will actually cost once it&#8217;s finished.<\/p>\n<p>This guide breaks down the four EAC formulas, when to use each one, and how to plug in real numbers with worked examples. You&#8217;ll also see how to keep forecasts accurate as conditions change, and how monday&#8217;s AI Workspace can calculate cost performance for you instead of leaving it buried in spreadsheets.\u00a0With AI-powered agents that surface budget risks automatically and dashboards that track CPI in real time, the platform turns EAC from a periodic calculation into a continuous early-warning system that updates as your project moves.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-2\">\n<h2 class=\"h2 text-block__title\">Key takeaways<\/h2>\n<ul>\n<li>\n<p>Estimate at completion (EAC) forecasts a project&#8217;s total cost based on actual performance to date, not just the original budget<\/p>\n<\/li>\n<li>\n<p>Four standard EAC formulas exist, and the right one depends on whether performance is steady, hit by a one-time variance, or affected by both cost and schedule problems<\/p>\n<\/li>\n<li>\n<p>Calculating EAC regularly and comparing it to budget at completion (BAC) helps you spot overruns while you still have time to act<\/p>\n<\/li>\n<li>\n<p>Related metrics such as ETC, TCPI, and VAC add context by showing remaining cost, the efficiency you&#8217;d need to hit budget, and total forecast variance<\/p>\n<\/li>\n<li>\n<p>monday AI Workspace tracks cost data in real time, calculates performance indexes automatically, and flags budget overruns before they compound<\/p>\n<\/li>\n<\/ul>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-3\">\n<h2 class=\"h2 text-block__title\">What is estimate at completion (EAC)?<\/h2>\n<p>EAC stands for estimate at completion: the current expectation of a project&#8217;s total cost once it&#8217;s finished. The calculation is the sum of the amount invested at the time of measurement and the costs necessary to complete the work.\u00a0It&#8217;s a core metric in <a href=\"https:\/\/www.apm.org.uk\/news\/demystifying-earned-value\/\">earned value management (EVM)<\/a>, a project performance method that integrates scope, schedule, and cost.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-4\">\n<\/div>\n<div class=\"text-block\" id=\"text-block-5\">\n<p>When unforeseen events crop up, such as delays or unplanned expenses, managers use an EAC to reassess the total costs required to complete the project. In this context, an EAC helps stakeholders measure the impact of changes more accurately and manage available resources better.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-6\">\n<\/div>\n<div class=\"text-block\" id=\"text-block-7\">\n<p>A fundamental observation needs to be made: don&#8217;t confuse Estimate at Completion with Estimate to\u00a0Completion, short for ETC. The former calculates accrued and expected costs, while the latter refers only to the expected costs to complete the project. That said, it&#8217;s important to understand the relationship between an EAC and a BAC, also known as Budget at Completion.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-8\">\n<h2 class=\"h2 text-block__title\">EAC vs ETC, BAC, TCPI, and VAC: how the cost metrics connect<\/h2>\n<p>Both EAC and BAC are cost calculations, though for different project periods. While EAC deals with the final cost forecast of a project that&#8217;s already underway, BAC deals with the cost that was authorized at the beginning of the project &#8211; the original budget.<\/p>\n<p>In practice, EAC evolves as it accounts for unforeseen circumstances and financial variations, and it is calculated at various points throughout the project life cycle. BAC, on the other hand, is static, used as a parameter to define the <a href=\"https:\/\/monday.com\/blog\/project-management\/earned-value-in-project-management\/\">earned value<\/a>, or EV, of the project.<\/p>\n<p>An example: a team calculates $100,000 as the BAC for a 1-year project. After 3 months, scheduling delays impact the project, and the team needs more resources to complete everything on time. With the added costs, the team creates a new budget, and the project cost estimate is $160,000.<\/p>\n<p>In this case, it&#8217;ll be necessary to spend $60,000 more than initially anticipated, making the EAC larger than the BAC. Keep in mind, in this example, there are still 9 months to complete the project, and other unforeseen events may occur, necessitating a new EAC. In such cases, the <a href=\"https:\/\/monday.com\/blog\/project-management\/project-management-challenges\/\">project manager&#8217;s challenge<\/a> is to mitigate the impact of actionable expenses, reallocate resources, and increase the team&#8217;s performance.<\/p>\n<p>EAC rarely travels alone. To read a cost forecast well, it helps to see how it relates to the other earned value metrics that describe the same project from different angles. The table below distinguishes the five you&#8217;ll use most often.<\/p>\n<table style=\"min-width: 100px\">\n<colgroup>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Metric<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>What it measures<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Static or dynamic<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Formula<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC (budget at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The total budget authorized at the start of the project<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Static<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Set during planning<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EAC (estimate at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The forecast total cost based on current performance<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>AC + ETC (and variants below)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>ETC (estimate to complete)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The remaining cost needed to finish the work<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EAC \u2212 AC<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>TCPI (to-complete performance index)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The cost efficiency you&#8217;d need to hit budget from here<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>(BAC \u2212 EV) \/ (BAC \u2212 AC)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>VAC (variance at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The gap between the budget and the forecast final cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC \u2212 EAC<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A few plain-language definitions make the table easier to apply. ETC is simply everything you still expect to spend, so it&#8217;s the forward-looking half of EAC once you strip out actual cost. TCPI answers a sharper question: to land on the original budget, how efficient must the remaining work be? A TCPI above 1.0 means you&#8217;d need to outperform your plan, which is a warning sign. VAC closes the loop by turning EAC into a single variance figure: a negative number signals a projected overrun, and a positive one signals savings.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-9\">\n<h2 class=\"h2 text-block__title\">Four estimate at completion formulas and when to use each<\/h2>\n<p>There isn&#8217;t one estimate-at-completion formula. There are four, and the one you choose depends on what&#8217;s actually happening on the project. Before the formulas, it helps to have the variables straight, since every calculation draws from the same short list of earned value inputs.<\/p>\n<table style=\"min-width: 75px\">\n<colgroup>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Variable<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Stands for<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Plain definition<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>AC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>What you&#8217;ve actually spent so far<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The total approved budget for the project<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EV<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The budgeted value of the work completed to date<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>PV<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Planned value<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The budgeted value of the work you planned to finish by now<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>CPI<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Cost performance index<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Cost efficiency, calculated as EV \/ AC<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>SPI<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule performance index<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule efficiency, calculated as EV \/ PV<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>ETC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Estimate to complete<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The remaining cost to finish the work<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-10\">\n<img width=\"1024\" height=\"560\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/cost-comparison-template.jpg\" class=\"attachment-large size-large\" alt=\"\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/cost-comparison-template.jpg 1024w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/cost-comparison-template-300x164.jpg 300w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/cost-comparison-template-768x420.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\n<\/div>\n<div class=\"text-block\" id=\"text-block-11\">\n<p>With those defined, here are the four most common formulas for calculating EAC:<\/p>\n<ul>\n<li>\n<p>EAC = AC + ETC:\u00a0This formula is the most generic and is often used when BAC is estimated from inaccurate or erroneous data. In this case, the EAC represents the sum of Actual Cost (AC) and Estimate to Completion (ETC)<\/p>\n<\/li>\n<li>\n<p>EAC = BAC \/ CPI:\u00a0This is the most recommended calculation when the project is in progress, and no interference is expected. To check the EAC, divide the BAC by the Cost Performance Index (CPI)<\/p>\n<\/li>\n<li>\n<p>EAC = AC + BAC &#8211; EV \/ CPI x SPI:\u00a0This is the formula used when schedule delays and expenses increase. In this case, it&#8217;s necessary to add the Schedule Performance Index (SPI) and the Earned Value (EV) to the equation<\/p>\n<\/li>\n<li>\n<p>EAC = AC + (BAC &#8211; EV):\u00a0Use this formula when unforeseen events are overcome, and you believe no new interference will occur until the end of the project<\/p>\n<\/li>\n<\/ul>\n<p>Choosing between them comes down to your read on the project. Match the formula to the situation using this quick guide:<\/p>\n<ul>\n<li>\n<p><strong>AC + ETC:<\/strong> use when your original estimate is obsolete, and you need to rebuild the remaining cost from a fresh, bottom-up estimate<\/p>\n<\/li>\n<li>\n<p><strong>BAC \/ CPI:<\/strong> use when performance has been steady, and you expect current cost efficiency to hold for the rest of the work<\/p>\n<\/li>\n<li>\n<p><strong>AC + (BAC \u2212 EV):<\/strong> use when a one-time variance has hit, but you&#8217;re confident the rest of the plan will run at the budgeted rate<\/p>\n<\/li>\n<li>\n<p><strong>AC + [(BAC \u2212 EV) \/ (CPI \u00d7 SPI)]:<\/strong> use when both cost and schedule are slipping, so the forecast has to account for combined pressure<\/p>\n<\/li>\n<\/ul>\n<p>For more on how earned value management uses these performance trends to forecast final project costs and completion dates, this <a href=\"https:\/\/apmg-international.com\/article\/what-earned-value-management-and-why-it-important\">APMG earned value management guidance<\/a> is a useful reference. Whichever formula you pick, the quality of the answer depends on the quality of the BAC behind it.\u00a0There are endless variables that impact costs in project management and, in turn, the calculations of the EAC. <\/p>\n<p>The biggest impact, however, comes from the initial BAC calculations, so it pays (quite literally) to be diligent when tracking and categorizing costs during the project planning stage. With a robust BAC in place, EAC calculations are more accurate and help keep projects on track and within budget.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-12\">\n<h2 class=\"h2 text-block__title\">How to calculate EAC: a worked example<\/h2>\n<p>To calculate Estimate at Completion, gather your actual cost, earned value, and budget, work out the performance indexes, then plug them into the formula that fits your situation. Two worked examples show how the numbers move.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-13\">\n<img width=\"1024\" height=\"541\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/WBS-gantt-1.jpg\" class=\"attachment-large size-large\" alt=\"\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/WBS-gantt-1.jpg 1024w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/WBS-gantt-1-300x158.jpg 300w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/WBS-gantt-1-768x406.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\n<\/div>\n<div class=\"text-block\" id=\"text-block-14\">\n<p>In the first scenario, performance is steady, so the BAC \/ CPI formula applies. A team is running a $100,000 project and wants a mid-point forecast.<\/p>\n<table style=\"min-width: 50px\">\n<colgroup>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Input<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Value<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion (BAC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$100,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost (AC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$60,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value (EV)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$48,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>First, calculate the cost performance index: CPI = EV \/ AC = $48,000 \/ $60,000 = 0.8. A CPI below 1.0 means the team is spending faster than it&#8217;s earning value. Now apply the formula: EAC = BAC \/ CPI = $100,000 \/ 0.8 = $125,000. At the current pace, the project is forecast to finish $25,000 over budget, which signals the need to act now rather than at closeout.<\/p>\n<p>The second scenario is harder, because both cost and schedule are slipping. That calls for the formula EAC = AC + [(BAC \u2212 EV) \/ (CPI \u00d7 SPI)].<\/p>\n<table style=\"min-width: 50px\">\n<colgroup>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Input<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Value<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion (BAC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$200,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost (AC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$120,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value (EV)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$100,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule performance index (SPI)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>0.90<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Start with CPI = EV \/ AC = $100,000 \/ $120,000 \u2248 0.83. Multiply the two indexes: CPI \u00d7 SPI = 0.83 \u00d7 0.90 = 0.75. Then work out the remaining budgeted work: BAC \u2212 EV = $200,000 \u2212 $100,000 = $100,000. Divide it by the combined index: $100,000 \/ 0.75 \u2248 $133,333. Finally, add the actual cost: EAC = $120,000 + $133,333 \u2248 $253,333. The forecast overrun is about $53,333, which is the project&#8217;s variance at completion (VAC = BAC \u2212 EAC).<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-15\">\n<h2 class=\"h2 text-block__title\">Using EAC to track project performance<\/h2>\n<p>So far, we have seen how EAC is necessary to realistically guide a project through uncertain scenarios. If you want the best chance of success in the face of uncertainty, EAC is an excellent metric for monitoring project performance. Because EAC forecasts the final cost based on the information available at the time, it&#8217;s not enough to use it reactively. You should also use EAC proactively.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-16\">\n<img width=\"1024\" height=\"585\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/KPIs-1.jpg\" class=\"attachment-large size-large\" alt=\"\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/KPIs-1.jpg 1024w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/KPIs-1-300x171.jpg 300w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/KPIs-1-768x439.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\n<\/div>\n<div class=\"text-block\" id=\"text-block-17\">\n<p>Another strategy is to analyze the EAC together with <a href=\"https:\/\/monday.com\/blog\/project-management\/kpi\/\">other important KPIs<\/a>, such as the BAC &#8211; mentioned before &#8211; and the CPI, short for the Cost Performance Index. The CPI calculates the difference between the EV and the actual cost, or AC, at the present moment.<\/p>\n<p>The CPI, which should also be calculated regularly, shows how efficiently the project budget is being spent. By tracking these metrics, stakeholders know how well teams are performing and can reallocate resources to the tasks and activities that need them at that moment. These methods and calculations also help identify potential roadblocks that can seriously impact project success, among many other benefits.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-18\">\n<h2 class=\"h2 text-block__title\">Benefits of an evolving EAC model<\/h2>\n<p>There&#8217;s no single method of calculating the Estimate at Completion. But for a reliable result, use the formula that best fits your finances. At the same time, you may need to refine your calculations during the project life cycle, which is called an &#8220;evolving EAC model.&#8221; Agility in the way you calculate EAC has several benefits:<\/p>\n<ul>\n<li>\n<p>Helps ensure earned value:\u00a0Calculating the EAC along with other indicators enables you to develop new strategies that offset and prevent the accumulation of negative impacts on the project&#8217;s EV<\/p>\n<\/li>\n<li>\n<p>Identify waste: Calculating EAC regularly helps detect areas of overspending, which can impact project progress (read: no more budget overruns)<\/p>\n<\/li>\n<li>\n<p>Better allocate resources: An adaptive EAC model <a href=\"https:\/\/monday.com\/blog\/project-management\/stakeholder-analysis-ultimate-guide\/\">helps stakeholders understand priorities<\/a> and identify opportunities to allocate resources, whether by adjusting budgets across teams or changing team structures<\/p>\n<\/li>\n<li>\n<p>Minimize risk: EAC provides a more accurate way to estimate your project&#8217;s actual costs and reduce risk throughout the project lifecycle<\/p>\n<\/li>\n<\/ul>\n<p>To better understand the benefits, let&#8217;s explore how an EAC calculation can help a project handle unexpected expenses.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-19\">\n<h2 class=\"h2 text-block__title\">Using EAC to adapt a project when new expenses arise<\/h2>\n<p>Imagine that you&#8217;re working at a medium-sized civil engineering company and you&#8217;re managing a new venture. The initial timetable forecasts a year of work divided into four quarters. The Budget at Completion is $700,000, including all resources (break it down into actual hours) and material costs. The project plan indicates that $400,000 of the budget will be spent during the first quarter, with the remaining $300,000 divided evenly over the last three quarters.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-20\">\n<img width=\"1024\" height=\"563\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/Resource_management-6-1.jpg\" class=\"attachment-large size-large\" alt=\"\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/Resource_management-6-1.jpg 1024w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/Resource_management-6-1-300x165.jpg 300w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/Resource_management-6-1-768x422.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\n<\/div>\n<div class=\"text-block\" id=\"text-block-21\">\n<p>With strong investment in the first stage, the team starts with a bang. But after a month of progress, a government agency fines the company for a regulatory oversight related to the project and suspends work for four weeks. In this new reality, the EAC calculation needs to consider these variables:<\/p>\n<ul>\n<li>\n<p>How much of the budget was spent so far<\/p>\n<\/li>\n<li>\n<p>A new timeline accounting for the interruption<\/p>\n<\/li>\n<li>\n<p>Any additional costs required to complete the first stage<\/p>\n<\/li>\n<li>\n<p>The costs of the fine<\/p>\n<\/li>\n<li>\n<p>The cost required to complete the next stages given the changes<\/p>\n<\/li>\n<li>\n<p>Any other loss of resources due to work interruption, such as employees leaving the company<\/p>\n<\/li>\n<\/ul>\n<p>This example illustrates the importance of the BAC since the overall objective is to keep the EAC lower than the BAC. Therefore, it&#8217;s critical to set aside a portion of your project&#8217;s budget to <a href=\"https:\/\/monday.com\/blog\/project-management\/contingency-plan\/\">account for the unexpected<\/a> when creating the project management plan. This budget buffering can help you reduce waste, avoid resource cuts, and distribute remaining resources more effectively.<\/p>\n<p>Great project planning, budgeting, and knowing how and when to use an EAC will help you keep your projects on track and moving toward success. But these activities are only as good as the platform you use to do them.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-22\">\n<h2 class=\"h2 text-block__title\">Six best practices for accurate EAC tracking<\/h2>\n<p>An EAC is only as trustworthy as the data and discipline behind it. Teams that forecast well treat EAC as routine, not a fire drill, and standardize how the number is produced. These six practices, alongside disciplined <a href=\"https:\/\/monday.com\/blog\/project-management\/project-cost-tracking\/\">project cost tracking<\/a>, keep your forecasts honest as the project changes.<\/p>\n<ol>\n<li>\n<p><strong>Automate data collection:<\/strong> pull actual cost and status from where the work already lives instead of copying figures by hand, which cuts lag and transcription errors<\/p>\n<\/li>\n<li>\n<p><strong>Recalculate on a fixed cadence:<\/strong> set a weekly or biweekly rhythm rather than waiting for something to break, so drift shows up while it&#8217;s still small<\/p>\n<\/li>\n<li>\n<p><strong>Base estimates on CPI and SPI:<\/strong> ground your forecast in measured cost and schedule efficiency, not gut feel, and match the formula to what those indexes reveal<\/p>\n<\/li>\n<li>\n<p><strong>Blend top-down and bottom-up ETC:<\/strong> cross-check a high-level forecast against a task-by-task estimate of remaining work to catch gaps either view misses<\/p>\n<\/li>\n<li>\n<p><strong>Document your assumptions:<\/strong> record what each estimate assumes about scope, rates, and risks, so you can easily trace a shift in reality to a revised number<\/p>\n<\/li>\n<li>\n<p><strong>Communicate updates to stakeholders:<\/strong> share each recalculated EAC and its variance promptly, so decisions about scope, budget, and resources happen early<\/p>\n<\/li>\n<\/ol>\n<p><img alt=\"monday.com board automations that recalculate cost performance when actual costs change\" src=\"https:\/\/res.cloudinary.com\/monday-blogs\/w_1024,h_576,c_fit\/fl_lossy,f_auto,q_auto\/wp-blog\/2025\/06\/Team-tasks_Board_Automation-3-scaled.jpg\" \/>The first two practices are where a connected work platform earns its keep. Automations can trigger a fresh calculation the moment an actual cost or status changes, and a shared dashboard keeps CPI visible to everyone without a manual refresh.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-23\">\n<h2 class=\"h2 text-block__title\">How monday AI Workspace supports estimate-at-completion tracking<\/h2>\n<p>The hardest part of EAC tracking isn&#8217;t the math. It&#8217;s keeping the inputs current. When actual cost lives in one spreadsheet, the schedule in another, and earned value in a third, every forecast starts with hours of reconciliation, and the number is stale the moment it&#8217;s finished. That gap between reality and your last calculation is exactly where overruns hide.<\/p>\n<p>monday AI Workspace closes that gap by keeping cost, progress, and schedule data connected in one place, then layering AI on top to forecast and flag. The table below contrasts the manual approach with tracking EAC on monday AI Workspace.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-24\">\n<img width=\"1024\" height=\"563\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/AI-risk-identification-1-1-3.jpg\" class=\"attachment-large size-large\" alt=\"\" loading=\"lazy\" decoding=\"async\" srcset=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/AI-risk-identification-1-1-3.jpg 1024w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/AI-risk-identification-1-1-3-300x165.jpg 300w, https:\/\/monday.com\/blog\/wp-content\/uploads\/2026\/09\/AI-risk-identification-1-1-3-768x422.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/>\n<\/div>\n<div class=\"text-block\" id=\"text-block-25\">\n<table style=\"min-width: 75px\">\n<colgroup>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/>\n<col style=\"min-width: 25px\" \/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Capability<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Manual spreadsheet EAC tracking<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>EAC tracking on monday AI Workspace<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Data freshness<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Updated by hand, often days behind<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Live cost and status data connected across boards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>CPI and EV calculation<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Manual formulas, easy to break<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Numeric goal tracking and dashboard widgets compute performance automatically<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Overrun detection<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Spotted only when someone checks<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Automations and AI risk alerts flag overspend as it happens<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule-risk signals<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Tracked separately from cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Gantt timelines and agents surface schedule slippage that feeds SPI<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Stakeholder reporting<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Rebuilt for each meeting<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Executive summary reports and AI-generated summaries update in real time<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Several capabilities do the heavy lifting. Dashboards act as the intelligence layer, turning work data into real-time views with numeric goal tracking, progress battery views, Gantt timelines, and portfolio-level executive summary reports, so AC, EV, CPI, and EAC stay visible over time. Automations remove manual refreshes by triggering a recalculation or alert the moment an actual cost or status changes, keeping CPI and EAC current between reviews.<\/p>\n<p>AI extends the same data further. monday agents can run specialized cost work end to end. A custom agent built to total budget overrun requests by department and quarter can route them to the right analyst and post a weekly coverage summary, while the prebuilt Risk Analyzer surfaces schedule and delivery risks that feed the schedule side of your forecast. These agents work alongside your team, handling the repetitive tracking so people can focus on the decisions. For plain-language access, monday sidekick lets you ask for a project&#8217;s current cost position in the flow of work, and Sidekick returns the figure without building a report. When you&#8217;re ready to standardize the setup, proven <a href=\"https:\/\/monday.com\/blog\/project-management\/cost-estimation-in-project-management\/\">cost estimation techniques<\/a> give you a starting structure for reliable estimates.<\/p>\n<p><a aria-label=\"Get started with monday.com\" class=\"cta-button blue-button\" data-index=\"1\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started with monday.com<\/a><\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-26\">\n<h2 class=\"h2 text-block__title\">Turning cost forecasts into confident decisions<\/h2>\n<p>Estimate at completion earns its place because it turns a project&#8217;s messy, mid-flight reality into a single number you can act on. The point isn&#8217;t the formula. It&#8217;s the lead time. A forecast that shows a $25,000 overrun in month three gives you room to renegotiate scope, shift resources, or reset expectations while those moves still matter.<\/p>\n<p>The teams that stay ahead of overruns are moving away from reactive, once-a-quarter spreadsheet checks toward continuous, AI-assisted forecasting that updates as the work does. Paired with a dependable <a href=\"https:\/\/monday.com\/blog\/project-management\/cost-management-software\/\">cost management platform<\/a>, a living EAC stops being a closeout autopsy and becomes an early-warning system your whole team can trust.<\/p>\n\n<\/div>\n<div class=\"text-block\" id=\"text-block-27\">\n<div class=\"accordion faq\" id=\"faq-faqs\">\n  <h2 class=\"accordion__heading section-title text-left\">FAQs<\/h2>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-1\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What are the four basic assumptions in EAC?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-1\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The four basic assumptions in EAC\u00a0are: an estimate-to-complete assumption; that the project will perform at the budgeted rate; that future performance will match the present cost variance and cost performance index (CPI); and that future performance will match the present CPI and schedule performance index (SPI).<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-2\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What are the steps involved in a bottom-up EAC approach?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-2\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>A bottom-up EAC approach has three steps. Review your work breakdown structure to identify every remaining task, estimate the cost to complete each one using current data and actual performance, then add those estimates together to arrive at the EAC for the entire project.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-3\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the difference between EAC and ETC?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-3\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The difference between EAC and ETC is scope. Estimate to complete (ETC) covers only the remaining cost needed to finish the work, while estimate at completion (EAC) is the full forecast total, combining actual cost already spent with the ETC still ahead of you.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-4\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the formula for variance at completion (VAC)?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-4\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The formula for variance at completion (VAC) is VAC = BAC \u2212 EAC, the budget at completion minus the estimate at completion. A negative result signals a forecast overrun, while a positive result means the project is projected to finish under its approved budget.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-5\" aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">How does monday AI Workspace handle estimate at completion?        \n          \n        \n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-5\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>monday AI Workspace handles estimate at completion by keeping cost and progress data connected in real time. Dashboards track CPI and EV automatically, Automations trigger recalculations when costs change, and agents flag budget overruns and schedule risks so your forecasts stay current between reviews.<\/p>\n    <\/div>\n  <\/div>\n  {\n    \"@context\": \"https:\\\/\\\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the four basic assumptions in EAC?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The four basic assumptions in EAC\\u00a0are: an estimate-to-complete assumption; that the project will perform at the budgeted rate; that future performance will match the present cost variance and cost performance index (CPI); and that future performance will match the present CPI and schedule performance index (SPI).\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the steps involved in a bottom-up EAC approach?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>A bottom-up EAC approach has three steps. Review your work breakdown structure to identify every remaining task, estimate the cost to complete each one using current data and actual performance, then add those estimates together to arrive at the EAC for the entire project.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the difference between EAC and ETC?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The difference between EAC and ETC is scope. Estimate to complete (ETC) covers only the remaining cost needed to finish the work, while estimate at completion (EAC) is the full forecast total, combining actual cost already spent with the ETC still ahead of you.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the formula for variance at completion (VAC)?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The formula for variance at completion (VAC) is VAC = BAC \\u2212 EAC, the budget at completion minus the estimate at completion. A negative result signals a forecast overrun, while a positive result means the project is projected to finish under its approved budget.\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"How does monday AI Workspace handle estimate at completion?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>monday AI Workspace handles estimate at completion by keeping cost and progress data connected in real time. Dashboards track CPI and EV automatically, Automations trigger recalculations when costs change, and agents flag budget overruns and schedule risks so your forecasts stay current between reviews.\\n\"\n            }\n        }\n    ]\n}<\/div>\n\n\n<\/div>","protected":false,"raw":"<figure style=\"text-align: center\"><\/figure>\r\nThe beginning of a project is always surrounded by expectations, and many ideas seem perfect when they\u2019re still on paper. Planning every detail, setting goals, and working diligently is often the way to reach the pot of gold at the end of the rainbow. But to get there, it\u2019s also necessary to prepare for the unforeseen, especially when costs are involved.\r\n\r\nThe good news is that there\u2019s a powerful metric to guide stakeholders down this path of numbers and changes. EAC, short for Estimate at Completion, is a formula used to calculate the total cost of a project that\u2019s faced with uncertainty. It's a project forecasting tool that is essential for understanding the impacts of unforeseen events on the future costs of a project, helping to mitigate losses and reallocate resources.\r\n\r\nIn this article, we\u2019ll explain how this formula works and how to apply it in your projects. We\u2019ll also show you how monday.com tools can help you calculate EAC in real-time, enabling confident decision-making about the future of the project.\r\n<p style=\"text-align: center\">[cta-button url=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"]Get started[\/cta-button]<\/p>\r\n\r\n<h2>What is EAC?<\/h2>\r\nEstimate at Completion is the current expectation of the total costs of a project once completed. The calculation is the sum of the amount invested at the time of measurement and the costs necessary to complete the work.\r\n<blockquote>Estimate at Completion (EAC) = Actual Cost (AC) + Estimate to Completion (ETC)<\/blockquote>\r\nWhen unforeseen events crop up, such as delays or unplanned expenses, managers use an EAC to reassess the total costs required to complete the project. In this context, an EAC helps stakeholders measure the impacts of changes more accurately and better manage available resources.\r\n<blockquote>Since it reflects the expectation of the final cost of a project that\u2019s still in progress, running EACs periodically is a smart move, especially for complex projects.<\/blockquote>\r\nA fundamental observation needs to be made: don\u2019t confuse Estimate <em>at<\/em>\u00a0Completion with Estimate <em>to<\/em>\u00a0Completion, short for ETC. While the former is a calculation of accrued and expected costs, the latter only refers to the expected costs to complete the project. With that said, it\u2019s important to be aware of the relationship between an EAC and a BAC, otherwise known as Budget at Completion.\r\n<h3>How do I calculate EAC?<\/h3>\r\nThere are a few different formulas for calculating EAC, and the one you choose depends on the realities of your project. The four most common formulas are:\r\n<ul>\r\n \t<li><strong>EAC = AC + ETC:<\/strong>\u00a0This formula is the most generic and is often used when BAC is estimated from inaccurate or erroneous data. In this case, the EAC represents the sum of Actual Cost (AC) and Estimate to Completion (ETC).<\/li>\r\n \t<li><strong>EAC = BAC \/ CPI:<\/strong>\u00a0This is the most recommended calculation when the project is in progress without interference. To check the EAC, divide the BAC by the Cost Performance Index (CPI).<\/li>\r\n \t<li><strong>EAC = AC + BAC - EV \/ CPI x SPI:<\/strong>\u00a0This is the formula used when schedule delays and expenses increase. In this case, it\u2019s necessary to add the Schedule\u00a0Performance Index (SPI) and the Earned Value (EV) to the equation.<\/li>\r\n \t<li><strong>EAC = AC + (BAC - EV)<\/strong>\u00a0This formula is used when unforeseen events are overcome, and it\u2019s believed that new interference\u00a0will not occur until the end of the project.<\/li>\r\n<\/ul>\r\n<h3>How do I know if the EAC is correct?<\/h3>\r\nThere are endless variables that impact costs in project management and, in turn, the calculations of the EAC. The biggest impact, however, is the initial calculations of the BAC, so it pays (quite literally) to be diligent when tracking and categorizing costs during the\u00a0project planning stage. With a robust BAC in place, EAC calculations are more accurate and help keep projects on track and within budget.\r\n<h2>EAC vs. Budget at Completion (BAC)<\/h2>\r\nBoth EAC and BAC are cost calculations, though for different project periods. While EAC deals with the final cost forecast of a project that\u2019s already underway, BAC deals with the cost that was authorized at the beginning of the project \u2014 the original budget.\r\n\r\nIn practice, the EAC evolves, as it takes unforeseen circumstances and financial variations into account and is calculated at various moments throughout the project life cycle. BAC, on the other hand, is static, used as a parameter to define the earned value, or EV, of the project.\r\n\r\nAn example: a team calculates $100,000 as the BAC for a 1-year project. After 3 months, scheduling delays impact the project and the team needs more resources to complete everything on time. With the added costs, a new budget is made and the project cost estimate is $160,000.\r\n\r\nIn this case, it\u2019ll be necessary to spend $60,000 more than initially anticipated, making the EAC larger than the BAC. Keep in mind, in this example, there are still 9 months to complete the project and other unforeseen events may occur, necessitating a new EAC. In such cases, the <a href=\"https:\/\/monday.com\/blog\/project-management\/project-management-challenges\/\">project manager's challenge<\/a> is to mitigate the impact of actionable expenses, reallocate resources, and increase the team's performance.\r\n<h2 class=\"PlaygroundEditorTheme__h2\" dir=\"ltr\">Using EAC to track project performance<\/h2>\r\nSo far, we have seen how EAC is necessary to realistically guide a project through uncertain scenarios. If you want the best chance of success in the face of uncertainty, EAC is an excellent tool for monitoring project performance.\u00a0Because EAC is a calculation that forecasts the final cost based on the information available at the time, it\u2019s not enough to use it reactively. You should also use EAC proactively.\r\n<blockquote>When you periodically estimate project costs with EAC and compare the results over time, you can track project costs much more accurately.<\/blockquote>\r\nAnother strategy is to analyze the EAC together with\u00a0<a href=\"https:\/\/monday.com\/blog\/project-management\/kpi\/\">other important KPIs<\/a>, such as the BAC \u2014 mentioned before \u2014 and the CPI, short for the Cost Performance Index. The CPI calculates the difference between the EV and the actual cost, or AC, at the present moment.\r\n\r\nThe CPI, which should also be calculated regularly, shows how efficiently the project budget is being spent. By tracking these metrics, stakeholders know how well teams are performing and can reallocate resources to the tasks and activities that need them at that moment. These methods and calculations also help identify potential roadblocks that can seriously impact project success, which are only a few of their many benefits.\r\n<h2><strong>Benefits of an evolving EAC model<\/strong><\/h2>\r\nThere\u2019s no single method of calculating the Estimate at Completion. But for a reliable result, it's important to use the formula most compatible with your finances. At the same time, you may need to refine your calculations during the project life cycle, which is referred to as an \"evolving EAC model.\" Agility in the way you calculate EAC has several benefits:\r\n<ul>\r\n \t<li><strong>Helps ensure earned value:<\/strong>\u00a0Calculating the EAC along with other indicators enables the development of new strategies that offset and prevent the accumulation of negative impacts on the EV of the project.<\/li>\r\n \t<li><strong>Identify waste<\/strong>: Calculating EAC regularly helps detect areas of overspending, which can impact project progress (<b><strong class=\"PlaygroundEditorTheme__textBold\">read<\/strong><\/b>: no more budget overruns).<\/li>\r\n \t<li><strong>Better allocate resources:<\/strong>\u00a0An adaptive EAC model\u00a0<a href=\"https:\/\/monday.com\/blog\/project-management\/stakeholder-analysis-ultimate-guide\/\">helps stakeholders better understand priorities<\/a>\u00a0and identify opportunities for resource allocation whether they be adjusting budgets across teams or making changes to the team structures.<\/li>\r\n \t<li class=\"PlaygroundEditorTheme__listItem\" value=\"4\"><strong>Minimize risk:<\/strong> EAC provides a more accurate approach to estimate the actual costs of your project, and minimize risks throughout the project lifecycle.<\/li>\r\n<\/ul>\r\nTo better understand the benefits involved, let\u2019s explore how an EAC calculation can help a project deal with unexpected expenses.\r\n<h2><strong>Using EAC to adapt a project when new expenses arise<\/strong><\/h2>\r\nImagine that you\u2019re working at a medium-sized civil engineering company and you\u2019re managing a new venture. The initial timetable forecasts a year of work divided into four quarters. The Budget at Completion is $700,000, including all resources (break it down into actual hours) and material costs. The project plan indicates that $400,000 of the budget will be spent during the first quarter with the remaining $300,000 divided evenly over the last three quarters.\r\n\r\nWith high investment power during the first stage, the team starts with a bang. But after a month of progress, a governmental agency hits the company with a fine due to a regulatory oversight related to the project and suspends work for four weeks. In this new reality, the EAC calculation needs to consider these variables:\r\n<ul>\r\n \t<li>How much of the budget was spent so far<\/li>\r\n \t<li>A new timeline accounting for the interruption<\/li>\r\n \t<li>Any additional costs required to complete the first stage<\/li>\r\n \t<li>The costs of the fine<\/li>\r\n \t<li>The cost required to complete the next stages given the changes<\/li>\r\n \t<li>Any other loss of resources due to work interruption, such as employees leaving the company<\/li>\r\n<\/ul>\r\nThis example illustrates the importance of the BAC since the overall objective is to keep the EAC lower than the BAC. Therefore, it\u2019s critical to set aside a portion of your project\u2019s budget to\u00a0<a href=\"https:\/\/monday.com\/blog\/project-management\/contingency-plan\/\">account for the unexpected<\/a>\u00a0when creating the project management plan. This budget buffering can help you mitigate waste, avoid resource cuts, and better distribute remaining resources.\r\n\r\nGreat project planning, budgeting, and knowing how and when to use an EAC will help you keep your projects on track and moving toward success. But these activities are only as good as the tools used to perform them.\r\n<p style=\"text-align: center\">[cta-button url=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"]Get started[\/cta-button]<\/p>\r\n\r\n<h2><strong>Capitalizing on an EAC\u00a0with monday.com<\/strong><\/h2>\r\nFinancial calculations often involve poring over spreadsheets and checking and rechecking data. But there are simpler and more reliable alternatives available. monday.com is designed from the ground up to execute every aspect of your project, from planning and budgeting to creating the reports and forecasts you need to keep everyone aligned.\u00a0With monday.com\u2019s easily customizable\u00a0<a href=\"https:\/\/monday.com\/blog\/project-management\/estimate-template\/\">Estimation Model Templates<\/a>, you can accurately estimate costs, whether you\u2019re planning an extravagant birthday party or need an EAC midway through a complex construction project.\r\n\r\n<img class=\"aligncenter size-full wp-image-97235\" src=\"https:\/\/monday.com\/blog\/wp-content\/uploads\/2022\/02\/image6-4.png\" alt=\"Comparison of project estimate and cost\" width=\"996\" height=\"483\" \/>\r\n\r\nThe template does all the calculations for you automatically so you can get on with the business at hand. Additionally, because monday.com is made for teams, you won\u2019t have to worry about juggling different versions of a spreadsheet. With shared access to task boards, reports, and a central source of data, you can keep budgets aligned, teams engaged, and all your projects on track from beginning to a successful end.\r\n<p style=\"text-align: center\">[cta-button url=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\"]Get started[\/cta-button]<\/p>\r\n\r\n<h2><strong>Project success is the sum of great tools and techniques<\/strong><\/h2>\r\nOvercoming obstacles and unexpected challenges are part and parcel of project management. Even the greatest planners face unexpected situations that are seemingly insurmountable. But with EAC expertise and a <a href=\"https:\/\/monday.com\/blog\/project-management\/cost-management-software\/\">cost management platform <\/a>to manage your projects seamlessly, even the most critical contingencies are reduced to road bumps.\r\n\r\n[faq id=\"EAC \"]\r\n<div style=\"text-align: right\"><\/div>"},"excerpt":{"rendered":"<p>The beginning of a project is always surrounded by expectations, and many ideas seem perfect when they\u2019re still on paper. Planning every detail, setting goals, and working diligently is often the way to reach the pot of gold at the end of the rainbow. But to get there, it\u2019s also &#8230;<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"pages\/cornerstone-primary.php","format":"standard","meta":{"_acf_changed":false,"monday_item_id":18041094022,"monday_board_id":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[13904],"tags":[14016],"class_list":["post-107404","post","type-post","status-publish","format-standard","hentry","category-project-management","tag-project-cost-management"],"acf":{"lobby_image":false,"post_thumbnail_title":"","hide_post_info":false,"hide_bottom_cta":false,"hide_from_blog":false,"landing_page_layout":false,"cluster":"","display_dates":"updated","featured_image_link":"","banner_url":"","main_text_banner":"Try monday.com for projects","sub_title_banner":"Join the 152K+ customers who use monday.com","sub_title_banner_second":"","banner_button_text":"","below_banner_line":"","use_customized_cta":false,"display_subscribe_widget":false,"custom_schema_code":"","activate_cta_banner":false,"sidebar_color_banner":"","custom_tags":[14016],"faqs":[{"faq_title":"FAQs","faq_shortcode":"faqs","faq":[{"question":"What are the four basic assumptions in EAC?","answer":"<p>The four basic assumptions in EAC\u00a0are: an estimate-to-complete assumption; that the project will perform at the budgeted rate; that future performance will match the present cost variance and cost performance index (CPI); and that future performance will match the present CPI and schedule performance index (SPI).<\/p>\n"},{"question":"What are the steps involved in a bottom-up EAC approach?","answer":"<p>A bottom-up EAC approach has three steps. Review your work breakdown structure to identify every remaining task, estimate the cost to complete each one using current data and actual performance, then add those estimates together to arrive at the EAC for the entire project.<\/p>\n"},{"question":"What is the difference between EAC and ETC?","answer":"<p>The difference between EAC and ETC is scope. Estimate to complete (ETC) covers only the remaining cost needed to finish the work, while estimate at completion (EAC) is the full forecast total, combining actual cost already spent with the ETC still ahead of you.<\/p>\n"},{"question":"What is the formula for variance at completion (VAC)?","answer":"<p>The formula for variance at completion (VAC) is VAC = BAC \u2212 EAC, the budget at completion minus the estimate at completion. A negative result signals a forecast overrun, while a positive result means the project is projected to finish under its approved budget.<\/p>\n"},{"question":"How does monday AI Workspace handle estimate at completion?","answer":"<p>monday AI Workspace handles estimate at completion by keeping cost and progress data connected in real time. Dashboards track CPI and EV automatically, Automations trigger recalculations when costs change, and agents flag budget overruns and schedule risks so your forecasts stay current between reviews.<\/p>\n"}]}],"hide_time_to_read":false,"cornerstone_hero_cta_override":{"label":"","url":""},"post_date":"20240903","show_contact_sales_button":"0","custom_header_banner":false,"sections":[{"acf_fc_layout":"content_1","blocks":[{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>Most project budgets don&#8217;t fail in one dramatic moment. They drift. A delayed shipment here, a scope change there, until the final cost sits well above the plan. Estimate at completion (EAC) is the forecasting metric that catches that drift early, giving you a running prediction of what a project will actually cost once it&#8217;s finished.<\/p>\n<p>This guide breaks down the four EAC formulas, when to use each one, and how to plug in real numbers with worked examples. You&#8217;ll also see how to keep forecasts accurate as conditions change, and how monday&#8217;s AI Workspace can calculate cost performance for you instead of leaving it buried in spreadsheets.\u00a0With AI-powered agents that surface budget risks automatically and dashboards that track CPI in real time, the platform turns EAC from a periodic calculation into a continuous early-warning system that updates as your project moves.<\/p>\n"}]},{"main_heading":"Key takeaways","content_block":[{"acf_fc_layout":"text","content":"<ul>\n<li>\n<p>Estimate at completion (EAC) forecasts a project&#8217;s total cost based on actual performance to date, not just the original budget<\/p>\n<\/li>\n<li>\n<p>Four standard EAC formulas exist, and the right one depends on whether performance is steady, hit by a one-time variance, or affected by both cost and schedule problems<\/p>\n<\/li>\n<li>\n<p>Calculating EAC regularly and comparing it to budget at completion (BAC) helps you spot overruns while you still have time to act<\/p>\n<\/li>\n<li>\n<p>Related metrics such as ETC, TCPI, and VAC add context by showing remaining cost, the efficiency you&#8217;d need to hit budget, and total forecast variance<\/p>\n<\/li>\n<li>\n<p>monday AI Workspace tracks cost data in real time, calculates performance indexes automatically, and flags budget overruns before they compound<\/p>\n<\/li>\n<\/ul>\n"}]},{"main_heading":"What is estimate at completion (EAC)?","content_block":[{"acf_fc_layout":"text","content":"<p>EAC stands for estimate at completion: the current expectation of a project&#8217;s total cost once it&#8217;s finished. The calculation is the sum of the amount invested at the time of measurement and the costs necessary to complete the work.\u00a0It&#8217;s a core metric in <a href=\"https:\/\/www.apm.org.uk\/news\/demystifying-earned-value\/\">earned value management (EVM)<\/a>, a project performance method that integrates scope, schedule, and cost.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"colored_notification","text":"<p>Estimate at Completion (EAC) = Actual Cost (AC) + Estimate to Completion (ETC)<\/p>\n","quote":false,"author":"","position":"","avatar":false}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>When unforeseen events crop up, such as delays or unplanned expenses, managers use an EAC to reassess the total costs required to complete the project. In this context, an EAC helps stakeholders measure the impact of changes more accurately and manage available resources better.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"colored_notification","text":"<p>Since it reflects the expectation of the final cost of a project that&#8217;s still in progress, running EACs periodically is a smart move, especially for complex projects.<\/p>\n","quote":false,"author":"","position":"","avatar":false}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>A fundamental observation needs to be made: don&#8217;t confuse Estimate at Completion with Estimate to\u00a0Completion, short for ETC. The former calculates accrued and expected costs, while the latter refers only to the expected costs to complete the project. That said, it&#8217;s important to understand the relationship between an EAC and a BAC, also known as Budget at Completion.<\/p>\n"}]},{"main_heading":"EAC vs ETC, BAC, TCPI, and VAC: how the cost metrics connect","content_block":[{"acf_fc_layout":"text","content":"<p>Both EAC and BAC are cost calculations, though for different project periods. While EAC deals with the final cost forecast of a project that&#8217;s already underway, BAC deals with the cost that was authorized at the beginning of the project &#8211; the original budget.<\/p>\n<p>In practice, EAC evolves as it accounts for unforeseen circumstances and financial variations, and it is calculated at various points throughout the project life cycle. BAC, on the other hand, is static, used as a parameter to define the <a href=\"https:\/\/monday.com\/blog\/project-management\/earned-value-in-project-management\/\">earned value<\/a>, or EV, of the project.<\/p>\n<p>An example: a team calculates $100,000 as the BAC for a 1-year project. After 3 months, scheduling delays impact the project, and the team needs more resources to complete everything on time. With the added costs, the team creates a new budget, and the project cost estimate is $160,000.<\/p>\n<p>In this case, it&#8217;ll be necessary to spend $60,000 more than initially anticipated, making the EAC larger than the BAC. Keep in mind, in this example, there are still 9 months to complete the project, and other unforeseen events may occur, necessitating a new EAC. In such cases, the <a href=\"https:\/\/monday.com\/blog\/project-management\/project-management-challenges\/\">project manager&#8217;s challenge<\/a> is to mitigate the impact of actionable expenses, reallocate resources, and increase the team&#8217;s performance.<\/p>\n<p>EAC rarely travels alone. To read a cost forecast well, it helps to see how it relates to the other earned value metrics that describe the same project from different angles. The table below distinguishes the five you&#8217;ll use most often.<\/p>\n<table style=\"min-width: 100px;\">\n<colgroup>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Metric<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>What it measures<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Static or dynamic<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Formula<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC (budget at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The total budget authorized at the start of the project<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Static<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Set during planning<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EAC (estimate at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The forecast total cost based on current performance<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>AC + ETC (and variants below)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>ETC (estimate to complete)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The remaining cost needed to finish the work<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EAC \u2212 AC<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>TCPI (to-complete performance index)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The cost efficiency you&#8217;d need to hit budget from here<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>(BAC \u2212 EV) \/ (BAC \u2212 AC)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>VAC (variance at completion)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The gap between the budget and the forecast final cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Dynamic<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC \u2212 EAC<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A few plain-language definitions make the table easier to apply. ETC is simply everything you still expect to spend, so it&#8217;s the forward-looking half of EAC once you strip out actual cost. TCPI answers a sharper question: to land on the original budget, how efficient must the remaining work be? A TCPI above 1.0 means you&#8217;d need to outperform your plan, which is a warning sign. VAC closes the loop by turning EAC into a single variance figure: a negative number signals a projected overrun, and a positive one signals savings.<\/p>\n"}]},{"main_heading":"Four estimate at completion formulas and when to use each","content_block":[{"acf_fc_layout":"text","content":"<p>There isn&#8217;t one estimate-at-completion formula. There are four, and the one you choose depends on what&#8217;s actually happening on the project. Before the formulas, it helps to have the variables straight, since every calculation draws from the same short list of earned value inputs.<\/p>\n<table style=\"min-width: 75px;\">\n<colgroup>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Variable<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Stands for<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Plain definition<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>AC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>What you&#8217;ve actually spent so far<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>BAC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The total approved budget for the project<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>EV<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The budgeted value of the work completed to date<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>PV<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Planned value<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The budgeted value of the work you planned to finish by now<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>CPI<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Cost performance index<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Cost efficiency, calculated as EV \/ AC<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>SPI<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule performance index<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule efficiency, calculated as EV \/ PV<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>ETC<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Estimate to complete<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>The remaining cost to finish the work<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"image","image_type":"normal","image":363414,"image_link":null}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>With those defined, here are the four most common formulas for calculating EAC:<\/p>\n<ul>\n<li>\n<p>EAC = AC + ETC:\u00a0This formula is the most generic and is often used when BAC is estimated from inaccurate or erroneous data. In this case, the EAC represents the sum of Actual Cost (AC) and Estimate to Completion (ETC)<\/p>\n<\/li>\n<li>\n<p>EAC = BAC \/ CPI:\u00a0This is the most recommended calculation when the project is in progress, and no interference is expected. To check the EAC, divide the BAC by the Cost Performance Index (CPI)<\/p>\n<\/li>\n<li>\n<p>EAC = AC + BAC &#8211; EV \/ CPI x SPI:\u00a0This is the formula used when schedule delays and expenses increase. In this case, it&#8217;s necessary to add the Schedule Performance Index (SPI) and the Earned Value (EV) to the equation<\/p>\n<\/li>\n<li>\n<p>EAC = AC + (BAC &#8211; EV):\u00a0Use this formula when unforeseen events are overcome, and you believe no new interference will occur until the end of the project<\/p>\n<\/li>\n<\/ul>\n<p>Choosing between them comes down to your read on the project. Match the formula to the situation using this quick guide:<\/p>\n<ul>\n<li>\n<p><strong>AC + ETC:<\/strong> use when your original estimate is obsolete, and you need to rebuild the remaining cost from a fresh, bottom-up estimate<\/p>\n<\/li>\n<li>\n<p><strong>BAC \/ CPI:<\/strong> use when performance has been steady, and you expect current cost efficiency to hold for the rest of the work<\/p>\n<\/li>\n<li>\n<p><strong>AC + (BAC \u2212 EV):<\/strong> use when a one-time variance has hit, but you&#8217;re confident the rest of the plan will run at the budgeted rate<\/p>\n<\/li>\n<li>\n<p><strong>AC + [(BAC \u2212 EV) \/ (CPI \u00d7 SPI)]:<\/strong> use when both cost and schedule are slipping, so the forecast has to account for combined pressure<\/p>\n<\/li>\n<\/ul>\n<p>For more on how earned value management uses these performance trends to forecast final project costs and completion dates, this <a href=\"https:\/\/apmg-international.com\/article\/what-earned-value-management-and-why-it-important\">APMG earned value management guidance<\/a> is a useful reference. Whichever formula you pick, the quality of the answer depends on the quality of the BAC behind it.\u00a0There are endless variables that impact costs in project management and, in turn, the calculations of the EAC. <\/p>\n<p>The biggest impact, however, comes from the initial BAC calculations, so it pays (quite literally) to be diligent when tracking and categorizing costs during the project planning stage. With a robust BAC in place, EAC calculations are more accurate and help keep projects on track and within budget.<\/p>\n"}]},{"main_heading":"How to calculate EAC: a worked example","content_block":[{"acf_fc_layout":"text","content":"<p>To calculate Estimate at Completion, gather your actual cost, earned value, and budget, work out the performance indexes, then plug them into the formula that fits your situation. Two worked examples show how the numbers move.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"image","image_type":"normal","image":363422,"image_link":null}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>In the first scenario, performance is steady, so the BAC \/ CPI formula applies. A team is running a $100,000 project and wants a mid-point forecast.<\/p>\n<table style=\"min-width: 50px;\">\n<colgroup>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Input<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Value<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion (BAC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$100,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost (AC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$60,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value (EV)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$48,000<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>First, calculate the cost performance index: CPI = EV \/ AC = $48,000 \/ $60,000 = 0.8. A CPI below 1.0 means the team is spending faster than it&#8217;s earning value. Now apply the formula: EAC = BAC \/ CPI = $100,000 \/ 0.8 = $125,000. At the current pace, the project is forecast to finish $25,000 over budget, which signals the need to act now rather than at closeout.<\/p>\n<p>The second scenario is harder, because both cost and schedule are slipping. That calls for the formula EAC = AC + [(BAC \u2212 EV) \/ (CPI \u00d7 SPI)].<\/p>\n<table style=\"min-width: 50px;\">\n<colgroup>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Input<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Value<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Budget at completion (BAC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$200,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Actual cost (AC)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$120,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Earned value (EV)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>$100,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule performance index (SPI)<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>0.90<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Start with CPI = EV \/ AC = $100,000 \/ $120,000 \u2248 0.83. Multiply the two indexes: CPI \u00d7 SPI = 0.83 \u00d7 0.90 = 0.75. Then work out the remaining budgeted work: BAC \u2212 EV = $200,000 \u2212 $100,000 = $100,000. Divide it by the combined index: $100,000 \/ 0.75 \u2248 $133,333. Finally, add the actual cost: EAC = $120,000 + $133,333 \u2248 $253,333. The forecast overrun is about $53,333, which is the project&#8217;s variance at completion (VAC = BAC \u2212 EAC).<\/p>\n"}]},{"main_heading":"Using EAC to track project performance","content_block":[{"acf_fc_layout":"text","content":"<p>So far, we have seen how EAC is necessary to realistically guide a project through uncertain scenarios. If you want the best chance of success in the face of uncertainty, EAC is an excellent metric for monitoring project performance. Because EAC forecasts the final cost based on the information available at the time, it&#8217;s not enough to use it reactively. You should also use EAC proactively.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"image","image_type":"normal","image":363430,"image_link":null}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>Another strategy is to analyze the EAC together with <a href=\"https:\/\/monday.com\/blog\/project-management\/kpi\/\">other important KPIs<\/a>, such as the BAC &#8211; mentioned before &#8211; and the CPI, short for the Cost Performance Index. The CPI calculates the difference between the EV and the actual cost, or AC, at the present moment.<\/p>\n<p>The CPI, which should also be calculated regularly, shows how efficiently the project budget is being spent. By tracking these metrics, stakeholders know how well teams are performing and can reallocate resources to the tasks and activities that need them at that moment. These methods and calculations also help identify potential roadblocks that can seriously impact project success, among many other benefits.<\/p>\n"}]},{"main_heading":"Benefits of an evolving EAC model","content_block":[{"acf_fc_layout":"text","content":"<p>There&#8217;s no single method of calculating the Estimate at Completion. But for a reliable result, use the formula that best fits your finances. At the same time, you may need to refine your calculations during the project life cycle, which is called an &#8220;evolving EAC model.&#8221; Agility in the way you calculate EAC has several benefits:<\/p>\n<ul>\n<li>\n<p>Helps ensure earned value:\u00a0Calculating the EAC along with other indicators enables you to develop new strategies that offset and prevent the accumulation of negative impacts on the project&#8217;s EV<\/p>\n<\/li>\n<li>\n<p>Identify waste: Calculating EAC regularly helps detect areas of overspending, which can impact project progress (read: no more budget overruns)<\/p>\n<\/li>\n<li>\n<p>Better allocate resources: An adaptive EAC model <a href=\"https:\/\/monday.com\/blog\/project-management\/stakeholder-analysis-ultimate-guide\/\">helps stakeholders understand priorities<\/a> and identify opportunities to allocate resources, whether by adjusting budgets across teams or changing team structures<\/p>\n<\/li>\n<li>\n<p>Minimize risk: EAC provides a more accurate way to estimate your project&#8217;s actual costs and reduce risk throughout the project lifecycle<\/p>\n<\/li>\n<\/ul>\n<p>To better understand the benefits, let&#8217;s explore how an EAC calculation can help a project handle unexpected expenses.<\/p>\n"}]},{"main_heading":"Using EAC to adapt a project when new expenses arise","content_block":[{"acf_fc_layout":"text","content":"<p>Imagine that you&#8217;re working at a medium-sized civil engineering company and you&#8217;re managing a new venture. The initial timetable forecasts a year of work divided into four quarters. The Budget at Completion is $700,000, including all resources (break it down into actual hours) and material costs. The project plan indicates that $400,000 of the budget will be spent during the first quarter, with the remaining $300,000 divided evenly over the last three quarters.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"image","image_type":"normal","image":363438,"image_link":null}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<p>With strong investment in the first stage, the team starts with a bang. But after a month of progress, a government agency fines the company for a regulatory oversight related to the project and suspends work for four weeks. In this new reality, the EAC calculation needs to consider these variables:<\/p>\n<ul>\n<li>\n<p>How much of the budget was spent so far<\/p>\n<\/li>\n<li>\n<p>A new timeline accounting for the interruption<\/p>\n<\/li>\n<li>\n<p>Any additional costs required to complete the first stage<\/p>\n<\/li>\n<li>\n<p>The costs of the fine<\/p>\n<\/li>\n<li>\n<p>The cost required to complete the next stages given the changes<\/p>\n<\/li>\n<li>\n<p>Any other loss of resources due to work interruption, such as employees leaving the company<\/p>\n<\/li>\n<\/ul>\n<p>This example illustrates the importance of the BAC since the overall objective is to keep the EAC lower than the BAC. Therefore, it&#8217;s critical to set aside a portion of your project&#8217;s budget to <a href=\"https:\/\/monday.com\/blog\/project-management\/contingency-plan\/\">account for the unexpected<\/a> when creating the project management plan. This budget buffering can help you reduce waste, avoid resource cuts, and distribute remaining resources more effectively.<\/p>\n<p>Great project planning, budgeting, and knowing how and when to use an EAC will help you keep your projects on track and moving toward success. But these activities are only as good as the platform you use to do them.<\/p>\n"}]},{"main_heading":"Six best practices for accurate EAC tracking","content_block":[{"acf_fc_layout":"text","content":"<p>An EAC is only as trustworthy as the data and discipline behind it. Teams that forecast well treat EAC as routine, not a fire drill, and standardize how the number is produced. These six practices, alongside disciplined <a href=\"https:\/\/monday.com\/blog\/project-management\/project-cost-tracking\/\">project cost tracking<\/a>, keep your forecasts honest as the project changes.<\/p>\n<ol>\n<li>\n<p><strong>Automate data collection:<\/strong> pull actual cost and status from where the work already lives instead of copying figures by hand, which cuts lag and transcription errors<\/p>\n<\/li>\n<li>\n<p><strong>Recalculate on a fixed cadence:<\/strong> set a weekly or biweekly rhythm rather than waiting for something to break, so drift shows up while it&#8217;s still small<\/p>\n<\/li>\n<li>\n<p><strong>Base estimates on CPI and SPI:<\/strong> ground your forecast in measured cost and schedule efficiency, not gut feel, and match the formula to what those indexes reveal<\/p>\n<\/li>\n<li>\n<p><strong>Blend top-down and bottom-up ETC:<\/strong> cross-check a high-level forecast against a task-by-task estimate of remaining work to catch gaps either view misses<\/p>\n<\/li>\n<li>\n<p><strong>Document your assumptions:<\/strong> record what each estimate assumes about scope, rates, and risks, so you can easily trace a shift in reality to a revised number<\/p>\n<\/li>\n<li>\n<p><strong>Communicate updates to stakeholders:<\/strong> share each recalculated EAC and its variance promptly, so decisions about scope, budget, and resources happen early<\/p>\n<\/li>\n<\/ol>\n<p><img decoding=\"async\" alt=\"monday.com board automations that recalculate cost performance when actual costs change\" src=\"https:\/\/res.cloudinary.com\/monday-blogs\/w_1024,h_576,c_fit\/fl_lossy,f_auto,q_auto\/wp-blog\/2025\/06\/Team-tasks_Board_Automation-3-scaled.jpg\"\/>The first two practices are where a connected work platform earns its keep. Automations can trigger a fresh calculation the moment an actual cost or status changes, and a shared dashboard keeps CPI visible to everyone without a manual refresh.<\/p>\n"}]},{"main_heading":"How monday AI Workspace supports estimate-at-completion tracking","content_block":[{"acf_fc_layout":"text","content":"<p>The hardest part of EAC tracking isn&#8217;t the math. It&#8217;s keeping the inputs current. When actual cost lives in one spreadsheet, the schedule in another, and earned value in a third, every forecast starts with hours of reconciliation, and the number is stale the moment it&#8217;s finished. That gap between reality and your last calculation is exactly where overruns hide.<\/p>\n<p>monday AI Workspace closes that gap by keeping cost, progress, and schedule data connected in one place, then layering AI on top to forecast and flag. The table below contrasts the manual approach with tracking EAC on monday AI Workspace.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"image","image_type":"normal","image":363446,"image_link":null}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<table style=\"min-width: 75px;\">\n<colgroup>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/>\n<col style=\"min-width: 25px;\"\/><\/colgroup>\n<tbody>\n<tr>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Capability<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>Manual spreadsheet EAC tracking<\/p>\n<\/th>\n<th colspan=\"1\" rowspan=\"1\">\n<p>EAC tracking on monday AI Workspace<\/p>\n<\/th>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Data freshness<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Updated by hand, often days behind<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Live cost and status data connected across boards<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>CPI and EV calculation<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Manual formulas, easy to break<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Numeric goal tracking and dashboard widgets compute performance automatically<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Overrun detection<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Spotted only when someone checks<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Automations and AI risk alerts flag overspend as it happens<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Schedule-risk signals<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Tracked separately from cost<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Gantt timelines and agents surface schedule slippage that feeds SPI<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Stakeholder reporting<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Rebuilt for each meeting<\/p>\n<\/td>\n<td colspan=\"1\" rowspan=\"1\">\n<p>Executive summary reports and AI-generated summaries update in real time<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Several capabilities do the heavy lifting. Dashboards act as the intelligence layer, turning work data into real-time views with numeric goal tracking, progress battery views, Gantt timelines, and portfolio-level executive summary reports, so AC, EV, CPI, and EAC stay visible over time. Automations remove manual refreshes by triggering a recalculation or alert the moment an actual cost or status changes, keeping CPI and EAC current between reviews.<\/p>\n<p>AI extends the same data further. monday agents can run specialized cost work end to end. A custom agent built to total budget overrun requests by department and quarter can route them to the right analyst and post a weekly coverage summary, while the prebuilt Risk Analyzer surfaces schedule and delivery risks that feed the schedule side of your forecast. These agents work alongside your team, handling the repetitive tracking so people can focus on the decisions. For plain-language access, monday sidekick lets you ask for a project&#8217;s current cost position in the flow of work, and Sidekick returns the figure without building a report. When you&#8217;re ready to standardize the setup, proven <a href=\"https:\/\/monday.com\/blog\/project-management\/cost-estimation-in-project-management\/\">cost estimation techniques<\/a> give you a starting structure for reliable estimates.<\/p>\n<p><a aria-label=\"Get started with monday.com\" class=\"cta-button blue-button\" data-index=\"1\" href=\"https:\/\/auth.monday.com\/users\/sign_up_new\" target=\"_blank\">Get started with monday.com<\/a><\/p>\n"}]},{"main_heading":"Turning cost forecasts into confident decisions","content_block":[{"acf_fc_layout":"text","content":"<p>Estimate at completion earns its place because it turns a project&#8217;s messy, mid-flight reality into a single number you can act on. The point isn&#8217;t the formula. It&#8217;s the lead time. A forecast that shows a $25,000 overrun in month three gives you room to renegotiate scope, shift resources, or reset expectations while those moves still matter.<\/p>\n<p>The teams that stay ahead of overruns are moving away from reactive, once-a-quarter spreadsheet checks toward continuous, AI-assisted forecasting that updates as the work does. Paired with a dependable <a href=\"https:\/\/monday.com\/blog\/project-management\/cost-management-software\/\">cost management platform<\/a>, a living EAC stops being a closeout autopsy and becomes an early-warning system your whole team can trust.<\/p>\n"}]},{"main_heading":"","content_block":[{"acf_fc_layout":"text","content":"<div class=\"accordion faq\" id=\"faq-faqs\">\n  <h2 class=\"accordion__heading section-title text-left\">FAQs<\/h2>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-1\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What are the four basic assumptions in EAC?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-1\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The four basic assumptions in EAC\u00a0are: an estimate-to-complete assumption; that the project will perform at the budgeted rate; that future performance will match the present cost variance and cost performance index (CPI); and that future performance will match the present CPI and schedule performance index (SPI).<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-2\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What are the steps involved in a bottom-up EAC approach?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-2\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>A bottom-up EAC approach has three steps. Review your work breakdown structure to identify every remaining task, estimate the cost to complete each one using current data and actual performance, then add those estimates together to arrive at the EAC for the entire project.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-3\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the difference between EAC and ETC?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-3\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The difference between EAC and ETC is scope. Estimate to complete (ETC) covers only the remaining cost needed to finish the work, while estimate at completion (EAC) is the full forecast total, combining actual cost already spent with the ETC still ahead of you.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-4\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">What is the formula for variance at completion (VAC)?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-4\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>The formula for variance at completion (VAC) is VAC = BAC \u2212 EAC, the budget at completion minus the estimate at completion. A negative result signals a forecast overrun, while a positive result means the project is projected to finish under its approved budget.<\/p>\n    <\/div>\n  <\/div>\n    <div class=\"accordion__item\">\n    <a class=\"accordion__button d-block\" data-toggle=\"collapse\" data-parent=\"#faq-faqs\" href=\"#q-faqs-5\"\n      aria-expanded=\"false\">\n      <h3 class=\"accordion__question\">How does monday AI Workspace handle estimate at completion?        <svg class=\"angle-arrow angle-arrow--down\" width=\"32\" height=\"32\" viewBox=\"0 0 32 32\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M16.5303 20.8839C16.2374 21.1768 15.7626 21.1768 15.4697 20.8839L7.82318 13.2374C7.53029 12.9445 7.53029 12.4697 7.82318 12.1768L8.17674 11.8232C8.46963 11.5303 8.9445 11.5303 9.2374 11.8232L16 18.5858L22.7626 11.8232C23.0555 11.5303 23.5303 11.5303 23.8232 11.8232L24.1768 12.1768C24.4697 12.4697 24.4697 12.9445 24.1768 13.2374L16.5303 20.8839Z\" fill=\"black\"\/>\n        <\/svg>\n      <\/h3>\n    <\/a>\n    <div id=\"q-faqs-5\" class=\"accordion__answer collapse collapse--md\" data-parent=\"#faq-faqs\">\n      <p>monday AI Workspace handles estimate at completion by keeping cost and progress data connected in real time. Dashboards track CPI and EV automatically, Automations trigger recalculations when costs change, and agents flag budget overruns and schedule risks so your forecasts stay current between reviews.<\/p>\n    <\/div>\n  <\/div>\n  <script type='application\/ld+json'>{\n    \"@context\": \"https:\\\/\\\/schema.org\",\n    \"@type\": \"FAQPage\",\n    \"mainEntity\": [\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the four basic assumptions in EAC?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The four basic assumptions in EAC\\u00a0are: an estimate-to-complete assumption; that the project will perform at the budgeted rate; that future performance will match the present cost variance and cost performance index (CPI); and that future performance will match the present CPI and schedule performance index (SPI).<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What are the steps involved in a bottom-up EAC approach?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>A bottom-up EAC approach has three steps. Review your work breakdown structure to identify every remaining task, estimate the cost to complete each one using current data and actual performance, then add those estimates together to arrive at the EAC for the entire project.<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the difference between EAC and ETC?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The difference between EAC and ETC is scope. Estimate to complete (ETC) covers only the remaining cost needed to finish the work, while estimate at completion (EAC) is the full forecast total, combining actual cost already spent with the ETC still ahead of you.<\\\/p>\\n\"\n            }\n        },\n        {\n            \"@type\": \"Question\",\n            \"name\": \"What is the formula for variance at completion (VAC)?\",\n            \"acceptedAnswer\": {\n                \"@type\": \"Answer\",\n                \"text\": \"<p>The formula for variance at completion (VAC) is VAC = BAC \\u2212 EAC, the budget at completion minus the estimate at completion. 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Dashboards track CPI and EV automatically, Automations trigger recalculations when costs change, and agents flag budget overruns and schedule risks so your forecasts stay current between reviews.<\\\/p>\\n\"\n            }\n        }\n    ]\n}<\/script><\/div>\n\n"}]}]}]},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is estimate at completion (EAC)? Formulas, examples, and project tracking for 2026 | monday.com Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/monday.com\/blog\/project-management\/estimate-at-completion-eac\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is estimate at completion (EAC)? 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