Estimating your cost at completion offers an estimate of the total expenses likely to be incurred when a project is finally complete. This should total the amount spent on materials and employees as well as any other costs incurred. The estimated cost at completion (EAC) can be calculated prior to beginning the work, but it is frequently offered at mid-project to allow a projected analysis that is based on costs already incurred. The EAC is calculated as the actual cost of work already performed (ACWP) plus the remaining estimate for completion of the work (ETC).
Tabulate the costs you have already incurred. This will include the expense of materials actually purchased, wages paid to employees and any other costs related to the project.
Estimate the costs you anticipate going forward. You can use your current costs to help estimate the total. As an example, if you have paid $5,000 in wages and anticipate you are halfway completed, then the wages expense might be another $5,000. You will also add the costs of materials you anticipate needing. If you purchased all the materials at the beginning of the project, then you may not have any further costs related to materials.
Calculate the estimated cost at completion by adding the costs you actually incurred to the costs you anticipate. As an example, if you had already spend $15,000 and anticipate $10,000 more being required, your estimated cost at completion would be $25,000.
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