EAC Calculator

Budget (BAC):

Earned Value (EV):

Actual Cost (AC):

Calculate

Estimated At Completion (EAC):

Estimated At Completion (EAC) is a critical concept in project management, helping project managers predict the final cost of a project. It’s a vital metric for ensuring that a project stays on budget.

In this article, we’ll explain the EAC formula and provide a working calculator to make your calculations easier.

What Is EAC?

EAC stands for Estimated At Completion. It’s an estimate of the total cost of a project when it’s completed, based on the current performance and expenses. This calculation is particularly useful when a project is deviating from its initial budget, and you need to predict the final cost.

EAC Formula

The formula for calculating the Estimated At Completion (EAC) is:

EAC = BAC / (EV / AC)

Where:

• EAC: Estimated At Completion
• BAC: Budget at Completion (the initial budget for the project)
• EV: Earned Value (the value of work that has been completed)
• AC: Actual Cost (the total cost incurred up to the current date)

Using the EAC Calculator

To calculate the EAC using the calculator provided above, follow these steps:

1. Enter the initial project budget (BAC) in the “Budget (BAC)” field.
2. Input the Earned Value (EV), which represents the value of the work that has been completed so far.
3. Enter the Actual Cost (AC), which is the total cost incurred up to the current date.
4. Click the “Calculate” button.

The calculator will process the input values and display the Estimated At Completion (EAC) in the designated field. This EAC value will give you a better understanding of whether the project is likely to stay within the initial budget or if it’s trending over or under budget.

Why EAC Matters

EAC is a crucial metric for project managers for several reasons:

1. Budget Management: It helps project managers proactively manage the budget and make necessary adjustments if the project is likely to exceed its budget.
2. Forecasting: EAC provides a reliable forecast of the project’s final cost, allowing for better planning and resource allocation.
3. Performance Evaluation: Project managers can use EAC to assess whether the project is on track and whether corrective actions are required.
4. Risk Management: By calculating EAC, project managers can identify risks and uncertainties in the project’s cost and take steps to mitigate them.

Conclusion

In conclusion, the Estimated At Completion (EAC) is a critical tool for project managers to ensure projects stay within budget and are completed successfully. Use the provided calculator to simplify your EAC calculations and keep your projects on track.