What is Estimate at Completion (EAC)?

The Estimate at Completion (EAC) is an updated estimate of how much the entire project will cost by the time it is completed, similar to recalculating your total spending for a vacation when you learn you may spend more or less than originally expected. It’s similar to changing your budget prediction based on your spending thus far and anticipated costs in the future. EAC in projects is reevaluating the overall cost while taking into account what has already been spent and forecasting how much more will be required to complete everything, resulting in a more accurate estimate of the ultimate project cost.