{"id":420120,"date":"2025-06-04T04:59:00","date_gmt":"2025-06-04T11:59:00","guid":{"rendered":"https:\/\/clickup.com\/blog\/?p=420120"},"modified":"2025-07-23T06:49:53","modified_gmt":"2025-07-23T13:49:53","slug":"how-to-calculate-eac","status":"publish","type":"post","link":"https:\/\/clickup.com\/blog\/how-to-calculate-eac\/","title":{"rendered":"How to Calculate Estimate at Completion (EAC) in Projects"},"content":{"rendered":"\n

A survey by McKinsey found that, on average, projects overrun their budgets and schedules by 30-45%<\/a>. A deeper look into a study of \u2018megaprojects,\u2019 some of which are worth over $1B, finds that cost overruns 79% relative to initial budget estimates<\/a>. <\/p>\n\n\n\n

This highlights obvious challenges in delivery but also points to poor cost and schedule estimates at project approval.<\/p><\/blockquote><\/div>\n\n\n\n

One of the key reasons why projects are over-budget and late is: inaccurate estimates<\/a>. Project managers often grapple with this problem and have created various frameworks to address it. The concept of estimate at completion (EAC) is one such. <\/p>\n\n\n\n

In this blog post, we understand this project estimating technique<\/a>, learn how to calculate eac, and explore its uses in business.<\/p>\n\n\n\n

Gain the project data you need with ClickUp! It’s free!<\/a><\/div>\n\n\n
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\u23f0 60-Second Summary<\/strong><\/h2>\n\n\n\n

Estimate at Completion (EAC) predicts the total project cost based on actual expenses and remaining work. It is used to prevent budget overruns, improve financial forecasting, and make informed decisions.<\/p>\n\n\n\n

The most commonly used formula for calculating EAC is:
EAC = AC + (BAC – EV)<\/p>\n\n\n\n

However, depending on the nature of the project, metrics you\u2019re tracking, schedule, and other factors, you might need other formulas.<\/p>\n\n\n\n

Steps to calculate EAC<\/strong><\/p>\n\n\n\n

To use the above formula and calculate EAC, follow these steps.<\/p>\n\n\n\n