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Calculating Estimate At Completion (EAC)

As a performance metric, the Estimate at Completion (EAC) represents the projected total cost of your project or task when it completes.

As a setting, it allows you to define how the EAC value should be calculated. 

Setting How to Calculate EAC

As part of project system preferences, the system administrator can define how to calculate the EAC. EAC can be calculated in one of the following two ways:

For more information about setting up project preferences in Workfront, including how to calculate the Estimate at Completion, see "Setting Project Preferences."

As a project manager, you can also change this preference at the project level, in the Finance sub-tab of the project. For more information about editing the Finance sub-tab of a project, see "Understanding the Project Finance Sub-tab."

Calculate at Project Level

EAC for the parent task and project are determined by entering the actual hours/actual labor cost into the EAC Formulas. This calculation includes Actual Hours/ costs and expenses added directly to the parent task or project.

Roll up from Tasks/ Subtasks

EAC for the parent task and project are determined by summing up the EAC for each child task. This calculation excludes Actual Hours/ costs and expenses added directly to the parent task or project.

Understanding How to Calculate EAC Based on the Performance Index Method

In Workfront, the calculation for EAC depends on the selected Performance Index Method (PIM) of the project. For more information about setting the PIM for your system or for your project, see "Setting the Performing Index Method (PIM)."

Calculating EAC Using Hour-Based PIM

EAC = Total Planned Hours / CPI*

*If Cost Performance Index (CPI) = 0, EAC = Total Planned Hours + Actual Hours. This occurs when hours have been captured, but project/task is at 0% complete.

For more information about calculating CPI, see "Calculating Cost Performance Index."

Calculating EAC Using Cost-Based PIM

EAC = EAC Labor + EAC Expense 

EAC Labor =  IF CPI Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI Labor

ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost

CPI Labor = IF Actual Labor Cost <> 0 THEN CPI Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost

ELSE CPI Labor = 1 

TotalBudgetedCostWorkPerformed = The result of multiplying the budgeted cost of the work planned (budgeted cost) and the percent of the task that has been completed so far.

For a non-parent task:
TotalBudgetedCostWorkPerformed = Planned Hours * (Percent Complete/100)

For a parent task:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all direct child tasks.

For a project:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top level tasks (parents and standalone tasks). 

EAC Expense = IncurredActualExpenseCost + NotIncurredPlannedExpense

IncurredActualExpenseCost = The sum of the Planned Amount field for all expenses where the Actual Amount field > 0. For example, if you create an expense for Task 1 and enter $500.00 in the Planned Amount field and an amount > 0 in the Actual Amount field (i.e. $600.00), the Incurred Planned Expense Cost for this task is $500.00.

NotIncurredPlannedExpense = The sum of the Planned Amount field for all expenses where the Actual Amount field = 0. For example, if you create two expenses for Task 1 where for the first expense the value in the Planned Amount field is $500.00 and the value in the Actual Amount is $600.00 and for the second expense, the value in the Planned Amount field is $300.00 and the value of the Actual Amount field is $0.00, the value of the Not Incurred Planned Expense for this task is $300.00. 

Locating the EAC in a Project or a Task

  1. Navigate to the project or task where you want to view the EAC.
  2. Select the Project Details tab or the Task Details tab, depending on whether you are viewing EAC for a project or task.
  3. Click Finance