Editing Earned value management (section)

=== Estimate at completion (EAC) ===
According to the [[PMBOK]] (7th edition) by the [[Project Management Institute]] (PMI), '''Estimate at completion''' (EAC) is the "expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete."{{sfn|Project Management Institute|2021|loc=Glossary §3 Definitions}}

EAC is the manager's projection of total cost of the project at completion.

<math>
\begin{align}
EAC = AC + {(BAC-EV)\over CPI} = {BAC \over CPI}
\end{align}
</math>

This formula is based on the assumption, that the performance of the project (or rather a deviation of the actual performance from a baseline) to date gives a good indication of what a performance (or rather deviation of a performance from a baseline) will be in the future. In other words, this formula is using statistics of the project to date to predict future results. Therefore, it has to be used carefully, when the nature of the project in the future is likely to be different from the one to date (e.g. performance of the project compare to baseline at the design phase may not be a good indication of what it will be during a construction phase).