Estimate to Complete (ETC) is the expected cost required to finish all remaining project work. It helps project managers determine how much more funding will be needed to complete the project based on current progress and cost performance.
Key Aspects of Estimate to Complete
- Forecasts Remaining Costs – Provides insight into future financial needs.
- Used for Budget Adjustments – Helps refine cost projections throughout the project lifecycle.
- Part of Earned Value Management (EVM) – Works alongside EAC, EV, and AC for performance tracking.
- Adapts to Performance Trends – Adjusted based on cost efficiency and project progress.
ETC Calculation Methods
| Formula | When to Use | Calculation |
|---|---|---|
| ETC = EAC - AC | If past cost trends continue. | EAC = $500,000, AC = $200,000 → ETC = $300,000 |
| ETC = (BAC - EV) / CPI | If cost performance affects remaining work. | BAC = $1M, EV = $400K, CPI = 0.8 → ETC = $750,000 |
| ETC = New Estimate | If past variances are no longer relevant. | Manually adjusted based on new cost assumptions. |
Example Scenarios
Software Development
A mobile app project was initially budgeted at $800,000 (BAC) but has spent $400,000 (AC) so far.
The team estimates ETC = EAC - AC = 750,000 - 400,000 = $350,000, meaning $350,000 more is needed.
Construction Project
A high-rise building project originally budgeted at $5 million has completed 60% of planned work but is over budget due to material price increases.
The ETC is revised based on adjusted cost projections to account for higher expenses.
Marketing Campaign
A digital marketing campaign with an original budget of $200,000 has spent $120,000, but some advertising costs have increased.
The team recalculates ETC to determine the remaining budget required to complete the campaign.
Mermaid Diagram: ETC Process
graph LR; A["Project Start"] --> B["Planned Budget (BAC)"] B --> C["Work Completed (EV)"] C --> D["Actual Cost (AC)"] D --> E["Estimate to Complete (ETC)"] E --> F["Remaining Budget Needed"]
Why Estimate to Complete Matters
- Ensures Accurate Cost Forecasting – Helps teams plan for remaining expenditures.
- Identifies Potential Budget Overruns – Flags financial risks early.
- Aids in Decision-Making – Supports project adjustments based on performance.
- Enhances Financial Transparency – Keeps stakeholders informed about cost expectations.
See also: Actual Cost (AC), Budget at Completion (BAC), Earned Value (EV), Estimate at Completion (EAC), Planned Value (PV).