Definition
Estimate at completion, or EAC, represents the total projected cost of a project based on its current performance. It is calculated by combining the actual costs incurred to date with the estimated cost to complete the remaining work. Understanding EAC is crucial for effective project cost management, allowing stakeholders to anticipate the final expenditure and make informed decisions. For instance, if a software development project has already spent $50,000 and the remaining work is projected to cost an additional $75,000, the EAC is $125,000. EAC differs from Estimate to Complete (ETC), which only forecasts the cost for the remaining work, not the total project cost. This concept is frequently assessed on PMP, CAPM, and PMI-ACP examinations.