Estimate at Completion (EAC)
Estimate at completion is the forecasted cost of the project, as the project progresses. There are a number of different ways to determine the EAC.
Estimate at Completion: Sum of all actuals for past fiscal periods added to the planned cost for future fiscal periods.
Example: To understand this, let's consider the example: You have a project duration from January to May. And you want to calculate EAC in March, then EAC = Actual cost (from Jan to Feb) + Planned cost of the remaining fiscal period (March to May)
Estimate to Complete (ETC)
Estimate to Complete (ETC) is a forecast of how much more money will need to be spent to complete the project.
Estimate to completion: Sum of all planned costs for future fiscal periods.
From the above example, ETC = Planned cost of the project for the remaining fiscal period (March to May).
As the project progresses, it will be necessary to forecast out the total anticipated funding required.
The two forecasts utilized are the estimate at completion (EAC) – how much the project is forecasted to cost overall – and the estimate to complete (ETC) – how much funding is required to complete the remaining work.
To understand more about the concept - you can refer to link - https://www.pmlearningsolutions.com/blog/estimate-completion-versus-estimate-complete-pmp-concept-41
Hope this clarifies and pls do an upvote if this helps you.
Estimate at Completion (EAC)
Estimate at completion is the forecasted cost of the project, as the project progresses. There are a number of different ways to determine the EAC.
Estimate at Completion: Sum of all actuals for past fiscal periods added to the planned cost for future fiscal periods.
Example: To understand this, let's consider the example: You have a project duration from January to May. And you want to calculate EAC in March, then EAC = Actual cost (from Jan to Feb) + Planned cost of the remaining fiscal period (March to May)
Estimate to Complete (ETC)
Estimate to Complete (ETC) is a forecast of how much more money will need to be spent to complete the project.
Estimate to completion: Sum of all planned costs for future fiscal periods.
From the above example, ETC = Planned cost of the project for the remaining fiscal period (March to May).
As the project progresses, it will be necessary to forecast out the total anticipated funding required.
The two forecasts utilized are the estimate at completion (EAC) – how much the project is forecasted to cost overall – and the estimate to complete (ETC) – how much funding is required to complete the remaining work.
To understand more about the concept - you can refer to link - https://www.pmlearningsolutions.com/blog/estimate-completion-versus-estimate-complete-pmp-concept-41
Hope this clarifies and pls do an upvote if this helps you.
