To-Complete Performance Index (TCPI) is a measure of the cost performance that should be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget.
It answers the question: “How efficiently must we perform the remaining work to stay within the budget or target?” A TCPI greater than 1.0 indicates a need to improve cost efficiency; less than 1.0 suggests remaining work can be performed with lower efficiency.
Key Characteristics
- Performance Forecast Metric – Focuses on future cost efficiency
- Threshold Indicator – Compares against current cost performance to assess feasibility
- Calculated Using EV, BAC, AC, and EAC – Based on actual and forecasted financials
- Supports Informed Decision-Making – Identifies urgency of corrective action
Formulas
To meet the Budget at Completion (BAC):
To meet the Estimate at Completion (EAC):
Where:
- BAC = Budget at Completion
- EV = Earned Value
- AC = Actual Cost
- EAC = Estimate at Completion
Example Scenarios
- Calculating TCPI when a project is overspending and leadership wants to understand if recovery is possible
- Comparing current CPI with TCPI to assess the realism of staying on budget
- Evaluating the level of performance improvement required to meet a revised cost estimate
Role in Performance and Forecasting
- Enables Future Cost Evaluation – Helps determine if corrective actions are needed
- Supports Transparency – Provides clear numerical targets for financial recovery
- Strengthens Control – Adds depth to cost tracking and reporting activities
- Complements CPI and EAC – Works alongside other EVM metrics for comprehensive insight
See also: Actual Cost (AC), Budget at Completion (BAC), Earned Value (EV), Estimate at Completion (EAC), Cost Performance Index (CPI).