Project Financial Control

What is EAC in Project Management? A Practical Guide for Consulting Firms

Most consulting and engineering firms don't discover a project is over budget until it's too late. EAC and FAC in project management solve this by giving you a live prediction of where costs and margins will land.

By Morten Fabrin, CEO of SUNAGO Matrix Published 6 March 2026 Updated 17 August 2026

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EAC and FAC project cost tracking dashboard for consulting firms showing project performance metrics

This guide explains both Estimate at Completion (EAC) and Forecast at Completion (FAC) - what they are, how they differ, and how they apply specifically to consulting and engineering firms with 10–50 employees. Not textbook theory. Practical application for firms who can't afford to discover margin problems after the fact.

Every example, every formula, every recommendation here is framed through the lens of professional services delivery - because that's where EAC FAC project management tracking creates the most value.

If you came here to run the numbers rather than read about them, the EAC calculator is further down the page: enter your budget, cost to date and progress, and it runs all four EAC formulas at once.

Understanding EAC and FAC for Consulting Firms

Two complementary metrics that give you different but equally essential views of project financial health.

Estimate at Completion (EAC)

EAC predicts total project cost based on actual performance to date plus estimated remaining costs. It's the single most important number for understanding whether a project will finish on budget.

Formula: EAC = Actual Cost + Estimate to Complete

For consulting firms, "actual cost" is primarily hours logged × employee cost rate. Knowing whether your 500-hour engagement will land at 500 or 620 hours - and what that does to margin - is what EAC delivers.

Forecast at Completion (FAC)

While EAC focuses on cost, FAC forecasts total project outcome - incorporating both cost and revenue. It answers: "When this project is done, what will our actual margin be?"

FAC is critical for fixed-price engagements. The fee is locked at signing, but cost drifts with every additional hour.

Think of EAC as the speedometer - how fast costs accumulate. FAC is the fuel gauge - will you make it to profitable delivery or run out before you get there?

The EAC Formulas, and a Worked Example

The definitions above are circular on their own: EAC is actual cost plus what is left to spend, and what is left to spend is EAC minus actual cost. To get from data to a number you need earned value. Three inputs, measured at the same moment:

BAC - Budget at Completion. The approved budget.
EV - Earned Value. Budget value of the work actually finished: percent complete × BAC.
AC - Actual Cost. What has been spent to date.

From those, the standard earned-value formulas:

CPI  = EV / AC                        cost performance index
EAC  = BAC / CPI                      the variance so far continues
     = BAC x AC / EV                  same thing, no rounded divisor
EAC  = AC + (BAC - EV)                the rest goes to plan
EAC  = AC + (BAC - EV) / (CPI x SPI)  cost and schedule both slipping
ETC  = EAC - AC                       what is still to spend
VAC  = BAC - EAC                      the overrun, if negative
TCPI = (BAC - EV) / (BAC - AC)        efficiency needed to still hit BAC

Worked example. A fixed-fee engineering study is budgeted at BAC = $400,000. Halfway through the schedule, the team has completed 45% of the work and spent $220,000.

EV = 45% × $400,000 = $180,000
AC = $220,000
CPI = EV / AC = $180,000 / $220,000 = 0.8181... (a recurring decimal - never round it before dividing by it)

You are getting about 82 cents of work for every dollar spent. If that rate continues, EAC = BAC / CPI - but CPI is a recurring decimal here, so use the equivalent form that has no divisor to round: EAC = BAC × AC / EV = $400,000 × $220,000 / $180,000 = $488,888.89. Round CPI first and you get a different answer at every number of digits - $487,805 at 0.82, $488,878 at 0.8182 - which is exactly the trap this form avoids. The project lands about $89,000 over budget. That is VAC = $400,000 − $488,888.89 = −$88,888.89, and it comes straight out of the fee.

If instead you believe the overrun was a one-off and the remainder will run to plan, EAC = $220,000 + ($400,000 − $180,000) = $440,000. The gap between those two EACs - $488.9k against $440k - is the decision you actually have to make: was this a blip, or is it how the project runs?

Either way, ETC = EAC − AC, so between $220,000 and $269,000 remains to be spent. And TCPI = ($400,000 − $180,000) / ($400,000 − $220,000) = $220,000 / $180,000 = 1.2222...: to still finish at budget, every remaining dollar has to buy about 22% more work than every dollar so far. That is the number that tells you whether recovery is realistic or whether the conversation is about scope and fee instead.

EAC Calculator: All Four Formulas at Once

The four EAC formulas give different answers for the same project on the same day. Most calculators show one number and leave you to assume there is only one. This one runs all four on your figures, shows the gap between the highest and the lowest, and says what each formula assumes about the work that is left.

BAC — Budget at completion *

The approved budget for the whole project.

AC — Actual cost to date *

What has actually been spent so far. Enter 0 if nothing has been spent yet.

Progress — enter one of the two *

Percent complete Earned value

Percent complete

Earned value is calculated as BAC × percent complete.

EV — Earned value

The budget value of the work actually finished. Used instead of percent complete.

PV — Planned value (optional)

Planned value is the value the plan said would have been delivered by this point. It is what makes SPI possible: SPI = EV / PV. Leave it empty and the third formula is shown as unavailable, with the reason.

Bottom-up ETC (optional)

The delivery team's own re-estimate of the cost of the remaining work. Enables the fourth formula.

JavaScript is off, so the fields will not recalculate. The results below are the real calculation for the example already filled in: a $400,000 budget, 45% complete, $220,000 spent.

The spread between the formulas

$48,888.89

Lowest $440,000 (EAC = AC + (BAC − EV)) · highest $488,888.89 (EAC = BAC / CPI)

Same project, same day, same numbers: $48,888.89 between the highest and the lowest forecast, depending only on which formula you pick. The gap is the decision you actually have to make - was the variance a one-off, or is it how this project runs?

EAC = BAC / CPI

$488,888.89

EAC = BAC × AC / EV = $400,000 × $220,000 / $180,000 = $488,888.89

Algebraically identical to BAC / CPI, but with no divisor to round. CPI here is 0.818182; dividing by a rounded CPI gives a different answer at every number of digits.

Used when

The variance so far continues for the rest of the project

ETC $268,888.89 · VAC -$88,888.89

EAC = AC + (BAC − EV)

$440,000

EAC = AC + (BAC − EV) = $220,000 + ($400,000 − $180,000) = $440,000

Used when

The variance was a one-off; the remaining work runs to budget

ETC $220,000 · VAC -$40,000

EAC = AC + (BAC − EV) / (CPI × SPI)

Not available for these inputs

Planned value (PV) is not entered, so SPI cannot be calculated. Planned value is what the plan said would be delivered by now; without it there is no schedule performance to apply.

Used when

Both cost and schedule performance carry into the remaining work

EAC = AC + bottom-up ETC

Not available for these inputs

No bottom-up estimate to complete entered. This formula replaces the maths with the delivery team's own re-estimate of the work that is left.

Used when

The original estimate no longer holds, so the team re-estimates the remaining work

The indices behind the forecasts

EV — Earned value

$180,000

45% × $400,000

CPI — Cost performance index

0.818182

$180,000 / $220,000

SPI — Schedule performance index

Planned value (PV) not entered. SPI is earned value divided by the value the plan said would be delivered by now.

TCPI to BAC

The efficiency the remaining work needs to still land on the original budget

1.2222

($400,000 − $180,000) / ($400,000 − $220,000)

TCPI to EAC

The efficiency the remaining work needs to land on your new forecast

0.8182

($400,000 − $180,000) / ($488,888.89 − $220,000), using EAC = BAC / CPI

Want this calculated automatically on every project, from the hours your team logs? See what SUNAGO Matrix costs.

Why EAC and FAC Matter More in Consulting Than Other Industries

Generic guides treat EAC as a formula exercise. In consulting and engineering, it's a survival metric.

Your Product Is Billable Time - Every Hour Counts

Unlike manufacturing where materials cost is known upfront, consulting project costs are driven entirely by people and hours. A single senior engineer spending 20 extra hours can wipe out the margin entirely. EAC tracks this in real time.

Fixed-Price Projects Create Hidden Risk

Many engineering firms operate on fixed-fee contracts. The client pays a set amount regardless of hours. Without FAC monitoring, you don't know you've lost money until the project is closed. Forecast at Completion turns this from a post-mortem into a proactive tool.

Multi-Phase Projects Make Manual Tracking Impossible

Consulting projects usually run in several phases, each with its own budget. Tracking EAC/FAC across all phases with spreadsheets is error-prone and always out of date. By the time you update Phase 2, Phase 4 is already drifting.

Scope Creep Is the Silent Margin Killer

Engineering projects are especially prone to scope changes - additional revisions, expanded analysis, extra client meetings. Each pushes actual cost up without a fee increase. EAC makes scope creep visible before it becomes a write-off.

How to Track EAC and FAC in Your Consulting Firm

Knowing the EAC formula is easy. Building a system that keeps it accurate is where most firms fail. Here's what's required for reliable project budget tracking.

Connect Time Tracking to Project Budgets

If consultants log hours in one system and budgets live in another, your EAC is always stale. Every hour recorded should immediately recalculate EAC.

billable hours tracking

Set Budget Baselines at the Phase Level

Don't just set one total project budget. Break it into phases so you can see which phase is drifting. A project on budget overall may hide a phase at 140%.

project profitability tracking

Monitor Budget Burn Rate Weekly

EAC should be reviewed weekly, not monthly. By the time a monthly report shows the overrun, weeks of margin recovery time are gone.

utilization rate

Use Real Cost Rates - Not Blended Averages

A junior engineer at $95/hour and a senior at $150/hour produce very different EAC calculations. If your staffing mix shifts mid-project, EAC must reflect it.

How SUNAGO Matrix Tracks EAC and FAC Automatically

SUNAGO Matrix eliminates the spreadsheet layer between operations and financial visibility. The Finance Overview calculates EAC and FAC automatically from live project data.

As an ERP for consulting firms, Matrix integrates project management with financial tracking. The resource planning capabilities keep allocations, capacity, and cost projections synchronized with EAC/FAC.

Every hour logged updates EAC in real time - the moment a consultant submits time, the cost forecast adjusts

Budget vs. Actual at both project and phase level - see exactly where drift is happening

"Keep Eye Out" alerts flag projects trending over budget automatically

Cost rates per employee flow from HR into all EAC/FAC calculations - no manual rate entry

FAC calculates projected margin against contracted fee - real-time profitability prediction

CRM, Projects, Time, and Finance in one system - no data transfer lag

EAC vs. FAC vs. BAC - Quick Reference

Five key metrics every consulting firm should understand for effective earned value management.

BAC (Budget at Completion)

The original approved project budget. Set once at project start.

Static - it doesn't change unless the contract is formally amended.

EAC (Estimate at Completion)

The forecasted total cost based on actual performance to date.

Dynamic - updates as work is performed and hours are logged.

FAC (Forecast at Completion)

The projected final margin/outcome considering both cost and revenue.

Dynamic - tells you if you'll make money. For fixed-price projects, the number that matters most.

ETC (Estimate to Complete)

The remaining cost from today until project end.

Calculated as ETC = EAC − Actual Cost. Shows how much budget is left.

VAC (Variance at Completion)

The difference between BAC and EAC.

Positive = under budget. Negative = over budget. Negative VAC on fixed-price = direct margin loss.

Related Resources

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Project Profitability Tracking

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Utilization Rate in Consulting

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Utilization Rate Benchmarks

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Frequently Asked Questions About EAC and FAC

Common questions about Estimate at Completion and Forecast at Completion in consulting project management.

What is EAC in project management?

EAC (Estimate at Completion) is a forecasting metric that predicts total project cost based on actual costs incurred plus estimated remaining costs. It updates dynamically as work progresses, unlike the original budget. For consulting firms, actual cost is hours logged multiplied by employee cost rates, and the remaining estimate is remaining hours multiplied by those same rates. The standard earned-value form is EAC = BAC / CPI, where CPI is earned value divided by actual cost.

What is the difference between EAC and FAC?

EAC focuses on total cost prediction - how much the project will cost when it's done. FAC (Forecast at Completion) is broader: it forecasts the final project margin by comparing projected cost against contracted revenue. FAC tells you whether the project will be profitable, not just what it will cost.

How do consulting firms calculate EAC?

In consulting, actual cost is hours logged × employee cost rates, and the estimate to complete is remaining hours × cost rates. With earned value you can also use the standard form: on a $400,000 project that is 45% complete with $220,000 spent, earned value is $180,000, so CPI is $180,000 / $220,000 = 0.8181... - a recurring decimal. Use the equivalent form that avoids rounding it: EAC = BAC × AC / EV = $400,000 × $220,000 / $180,000 = $488,888.89. Dividing by a rounded CPI gives a different answer at every number of digits ($487,805 at 0.82, $488,878 at 0.8182), so reach for the multiplication form. Software that connects time tracking to project budgets calculates this automatically in real time, eliminating spreadsheet lag and manual errors.

Why is EAC important for fixed-price engineering projects?

Because the client fee is fixed, any cost overrun comes directly from your margin. EAC gives you early warning when a project is consuming more hours than budgeted, allowing you to intervene - reassign resources, renegotiate scope, or adjust timelines - before the margin disappears entirely.

How often should you review EAC on consulting projects?

Weekly at minimum. Consulting projects can drift quickly - a single week of overwork on one phase can shift the EAC significantly. Monthly reviews catch problems too late to recover margin. Weekly EAC reviews give project managers time to course-correct before small variances become write-offs.

See EAC and FAC Tracking in Action

Stop discovering budget problems at project close. SUNAGO Matrix gives you real-time project financial visibility - EAC, FAC, margin tracking, and budget variance - without spreadsheets. Start your 14-day free trial.

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