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Estimate to Complete(ETC) in project management: Formulas & calculations for PMP exam with examples. Also ETC vs Estimate At Completion (EAC).
When forecasting how much money it will cost you to complete the project, you can use two estimates that sound very similar but are, in fact, completely different: estimate to complete (ETC) and estimate at completion (EAC).
Estimate to Complete (ETC) Formula. You can use two formulas to calculate ETC: Bottom-up Cost Estimation; ETC = Estimate at Completion – Actual Cost; ETC Examples with Calculations. We will discuss the two examples of ETC using both formulas and calculations. Case I: Bottom-Up Cost Estimation. Here, you calculate the cost of the remaining work.
In earned value analysis, the Estimate To Complete, usually abbreviated ETC, is the expected remaining cost to complete the project. It is not the final overall project cost (that's the EAC), rather it is the expenditure from now to the end of the project.
This post explains what the Estimate to Complete in project management is, its purpose in project cost management, how to calculate it, and PMP exam tips.
Estimate to Complete (ETC) is a strong forecasting tool that shows the planned cost to complete the remaining project work. It provides an answer to the question: How much money is needed to complete the remaining project work?
However, there is a standard formula to help you determine the estimate to complete. Estimate to Complete (ETC) = Estimate at Completion (EAC) – Actual Cost (AC) Estimate at Completion (EAC): This is the total expected cost of the project upon completion.
The Estimate at Completion is calculated using the following formula: EAC = BAC / CPI where CPI = EV / AC or EAC = AC / (EV / BAC) | both formulas with same result
What is the Estimate to Complete Formula (ETC)? The Estimate to Complete (ETC) formula is essentially an inversion of the EAC calculations, so if you can do that one, you can work this one out easily.
Estimate at Completion Formula. The formula for finding ETC is: ETC = Estimate at Completion (EAC) – Actual Costs (AC) Estimate at Completion v. Estimate to Complete. These two terms are often mixed up, because they both refer to estimates on some aspect of a project budget.