What is ETC and EAC in project management?

Estimate at completion (EAC) is used for forecasting the amount of money at the end of the project. Estimate to complete (ETC) is the amount of money needed to finish the project at any point.

What is ETC?

ETC stands for Estimate to Complete and refers to the expected remaining costs at the current time. ETC can be determined in the course of the project.
For this purpose, the cost of the work achieved to date is analyzed and extrapolated to the end of the project. In project management, ETC is assigned to budget and cost management.

The ETC is the estimated remaining cash outlay. Both are important. Because it is an estimate according to the plan, the progress of the project so far, and most importantly, in money. So it is the money that the client still needs to have ready.

Accordingly, this value is made up of two things: First, from the determined values of the controlling and from the experience of the project, a human factor. Nevertheless, in the EVA this is packed into a mathematical formula. So one has more or less the choice between the two formulas. Namely, on the one hand, if one considers deviations from the plan as a one-time event or as a general, fundamental problem. However, one does not have to consider this over the entire project, but again over each element of the WBS down to the individual work package.

In the work package area, this should be a part of the reporting of the employee doing the work. The reporting described in the Actual Costs chapter would increase by one value, the remaining effort estimated by the employee on the processed AP.

Over all, the ETC is not very meaningful because its value is not only fixed over the life of the project, as the formulas suggest. Rather, the BAC also moves over the course of the project due to Change Requests, Recommended Changes and Corrective Actions.

The ETC thus has the task of recognizing whether the funds are sufficient and what costs will still be incurred by the client.

Also, the Estimation at complete (EAC) can be done very accurately with the help of the selection of the formulas. But again, the EAC only gives an estimate.

What is EAC?

The EAC (Estimate at Completion) refers to the expected total costs at the current time. The costs incurred to date, plus the costs still to be expected up to completion, add up to the estimated total costs.

The Estimate at Completion in relation to a reporting date corresponds to the progress of the project. They represent a revised estimate. The determination of the EAC must be carried out very correctly. The result of the EAC clearly shows where the project or work package stands in terms of costs, whether it is on schedule or whether cost variances are to be feared until completion.

The EAC value includes all costs that result from the actual costs plus the residual costs until completion. Residual costs can be determined from individual activities, from subproject costs, or for the overall project at completion. It is the cost of a specific activity sequence within the work breakdown structure and the estimated remaining cost to complete, the Estimate to Complete ( ETC). Relative to a reporting date, Estimate at Completion represents the progress of the project and is a revised estimate. The EAC costs are calculated from the sum of the current costs, related to a reporting date, and the ETC costs, Estimate at Completion (ETC).

What does EAC and ETC mean?

EAC (Estimate at Completion) and ETC (Estimate to Complete) are two important dimensions of Earned Value Management.

What is ETC in projects?

The Estimate To Complete (usually abbreviated ETC) is the project management measure that shows you the remaining cost you expect to pay in order to complete a project. Note that ETC isn’t the final overall expected project budget – this is called Estimate at Completion (EAC).

What does EAC mean in project management?

Estimate at Completion

Estimate at Completion (EAC) is the current expectation of total cost at the end of a project. The EAC represents the final project cost given the costs incurred to date and the expected costs to complete the project. EAC is the expected spend where BAC (budget at completion) is the authorized spend on a project.

How do you calculate EAC and etc?

The formulas to calculate the EAC based on these 4 approaches are: EAC with bottom-up ETC: EAC = AC + ETC. EAC with ETC at budgeted rate: EAC = AC + BAC – EV. EAC with ETC based on present CPI: EAC = BAC / CPI.

What does EAC stand for?


Acronym Definition
EAC Equivalent Annual Cost (finance)
EAC Education & Assistance Corporation
EAC Emergency Action Committee (US DoD)
EAC Executive Advisory Council

How is etc calculated?

ETC = Estimate at Completion – Actual Cost.

What is an EAC review?

Estimate at completion (EAC) is used for forecasting the amount of money at the end of the project.

What is SAP EAC?

EAC is a query to forecast the estimated cost at completion based on actual and estimated cost up to the previous month. This query is executed at intervals of months or fiscal periods.

How do you calculate EAC for a project?

Four formulae can be used to calculate EAC. When performance is steady and has not deviated too sharply from the original estimate, use the following formula: EAC = BAC/CPI(Estimate at Completion equals Budget at Completion divided by Cost Performance Index).

How is EAC calculated in MS project?

When a task is created, resources are assigned, and a baseline saved, EAC is the same as scheduled cost, which is the total work value multiplied by the resource cost rate. As actual work or actual cost is reported on the task, Project calculates EAC according to this formula.

What is EAC life cycle?

Equivalent annual cost (EAC) is the annual cost of owning, operating, and maintaining an asset over its entire life. Firms often use EAC for capital budgeting decisions, as it allows a company to compare the cost-effectiveness of various assets with unequal lifespans.

What are the objectives of EAC?

The EAC aims to achieve prosperity, competitiveness, security, stability and political unification in East Africa. The partner countries – Kenya, Uganda, Tanzania, Rwanda and Burundi – aim to create a political federation that would expand and reinforce economic, political, social and cultural integration.

What is EAC compliance?

about the Eac certification mark

Eurasian Conformity (EAC) certification demonstrates that your products meet the Eurasian Economic Union (EAEU)’s regulations and standards for customs clearance and trading. An EAC mark is essential if you intend to sell consumer products and industrial equipment into the EAEU.

What is EAC label?

The Eurasian Conformity mark (EAC, Russian: Евразийское соответствие (ЕАС)) is a certification mark to indicate products that conform to all technical regulations of the Eurasian Customs Union.

How do I calculate EAC in Excel?

Equivalent annual cost (EAC) is the annual cost of owning and maintaining an asset determined by dividing the net present value of the asset purchase, operations and maintenance cost by the present value of annuity factor.


NPV = EAC × 1 − (1 + r)n


How do you calculate CPI from PMP?

Using the formula CPI = EV / AC, the project manager will have a value of less than 1 (project over budget), of 1 (project on budget), or greater than 1 (project under budget). CPI in project management measures the cost efficiency of a project.

What does negative etc indicate?

Earned Value Management and Important Concepts |ETC …

What does ETC mean in accounting?

estimate to complete

A recent discovery was to realize that many project managers – some of which work for me – confuse the importance of an “estimate to complete” (ETC) with an “estimate at completion.” (EAC) This is not to say they are confused about the term, its definition or any of the semantics associated with these two metrics.

What is the EAC formula?

Estimate at completion (EAC) is calculated as budget at completion divided by cost performance index. Formula 1 for EAC is as follows: Estimate at completion (EAC) = Budget at completion (BAC) / Cost performance index (CPI)

How do you calculate EV in project management?

The Formula for Earned Value (EV)

Take the actual percentage of the completed work and multiply it by the project budget and you will get the Earned Value. Earned Value = % of completed work X BAC (Budget at Completion).

What is estimated time of completion?

Estimated Time of Completion is the time estimated for the activities relating to loading or unloading of goods to be completed. ETC is also called closing.

What means ETA and ETD?

What is ETA and ETD in shipping? Estimated time of arrival (ETA) in shipping is the estimated time the the ship will arrive at anchorage (waiting outside the port) or at dock. Estimated time of departure (ETD) is when the ship is estimated to leave the dock.

What is ETA project?

What is “ETA”? ETA stands for Estimated Time of Arrival. In the development world, it often refers to an estimated due date of a project. When asked to give an ETA you are asked to estimate the effort of a task and the subsequent time it will take you to accomplish it.