HKSM
Estimate to Complete (ETC)
The forecasted amount of money needed to complete all unfinished work on the project.
Key Points
- ETC represents only the future cost from today to project completion, not what has already been spent.
- It links to total forecast: EAC = AC + ETC, so ETC = EAC - AC.
- You can compute ETC by a bottom-up reestimate of remaining work or by deriving it from an EAC formula based on performance assumptions.
- Official PMI wording: "The expected cost to finish all the remaining project work."
Example
A project has BAC = $500,000, EV = $250,000, and AC = $300,000. Assuming future cost performance will mirror past performance (use CPI), first find EAC: EAC = AC + (BAC - EV) / CPI. With CPI = EV / AC = 250,000 / 300,000 = 0.833, EAC ≈ 300,000 + 250,000 / 0.833 ≈ 300,000 + 300,000 = $600,000. Therefore, ETC = EAC - AC = 600,000 - 300,000 = $300,000.
PMP Example Question
A project reports AC = $1.2M, EV = $1.0M, and BAC = $2.0M. The PM expects future work to continue at the current CPI. What is the Estimate to Complete (ETC)?
- $0.8M
- $1.0M
- $1.2M
- $2.0M
Correct Answer: C — $1.2M
Explanation: CPI = EV/AC = 1.0/1.2 = 0.833. EAC = AC + (BAC - EV)/CPI = 1.2 + (1.0)/0.833 ≈ 2.4 (in millions). ETC = EAC - AC = 2.4 - 1.2 = 1.2M.
