Difference between EAC and ETC

joshipiyush

Hello,

As both Estimate At Completion (EAC) and Estimate To Complete (ETC) related to cost forecasting. I have confusion that both are asking for how much estimated cost at that particular point from the project. Please anyone can explain in detail. Thanks

Harwinder

Hi @joshipiyush,

At any given point during the project:

• EAC is how much you expect the project to cost (total budget) when it's complete.
• ETC is how much more money you expect to spend to complete the remaining work on the project.

For example, initially my estimate to complete the project was $100,000 (BAC).

2 months into the project, I have already spent $30,000, and after reviewing the remaining work, I expect to spend addition $80,000 on the project.

So, $80,000 is my ETC, and overall the project is expected to cost $30,000 + $80,000 = $110,000. This is my EAC.

Hope that helps.

joshipiyush

Thanks Harwinder..

KK6

Thanks Harwinder Paaji. I also wanted to know this.

Best, KK

Hamed_Abedi

Hi everybody,

Thanks Harwinder for his explanation and also the example. In order to get complete information on this subject, you can also study about EVM (Earned Value Management);
in fact, there are different parameters (from basic to detail) in this area. You can first get familiar with PV, EA & AC, then the indices of Project Variance and Performance (SV, CV, SPI & CPI) and finally you can calculate the EAC & ETC (which are well explained by Harwinder).

Thanks and regards...