EAC = estimate to complete + actual costThe standard calculation of Estimate to Complete is based on Estimate At Completion, meaning that the standard formulas are circular and therefore somewhat meaningless. In practice, methods for calculating Estimate At Completion depend upon the confidence you have in baseline estimates.For a project that is significantly off budget, it is common to develop new estimates for remaining work to calculate Estimate At Completion:
EAC = new estimates for remaining work + actual costFor a project that is close to budget you might use the original cost baseline adjusted by any current or anticipated cost variance.
|Overview: Estimate At Completion|
|Definition||The total expected cost to complete a project or activity.|
|Related Concepts||Actual CostEstimate To CompleteCost VarianceProject Metrics|