Estimate at completion, the number that drives everything
EAC - cost-to-date plus cost-to-complete - is the input to percent complete, earned revenue, and projected margin. Fintra derives it per cost code so your forecasts move with reality.
What estimate at completion is
The estimate at completion (EAC) is your best current guess of what a job - or a single cost code - will cost in total. It’s the sum of what you’ve already spent and what you still expect to spend. Because cost-to-cost percent complete divides cost-to-date by EAC, the EAC quietly drives your revenue and your margin.
Estimate at completion
EAC = cost_to_date + cost_to_complete
Cost-to-complete defaults to revised budget minus cost-to-date, floored at zero, but you can override it when you know a code will finish differently than budgeted.
How Fintra derives EAC
- Cost-to-complete defaults to revised budget minus cost-to-date (never below zero).
- A manual cost-to-complete override lets a PM reflect a known overrun or saving.
- EAC rolls up from cost codes to the job for percent complete and projected margin.
- Projected over/under = revised budget − EAC, code by code.
What EAC unlocks
| Output | Uses EAC how |
|---|---|
| Percent complete | cost-to-date ÷ EAC |
| Earned revenue | percent complete × contract value |
| Estimated gross profit | contract value − EAC |
| Projected over/(under) | revised budget − EAC |
Forecasts you can defend
Because EAC is built from your revised budget, actual cost-to-date, and explicit overrides, every projected margin is traceable. When a job’s forecast profit changes, you can point to the exact code and the cost-to-complete override that moved it.
Frequently asked questions
What is estimate at completion (EAC)?
EAC is the total forecast cost of a job or cost code - the sum of costs incurred to date and the estimated cost to complete. It’s central to construction accounting because cost-to-cost percent complete, earned revenue, and projected margin are all derived from it.
How is cost-to-complete calculated?
By default, cost-to-complete is the revised budget minus cost-to-date, floored at zero. Fintra also supports a manual override so a project manager can reflect a known overrun or saving that the budget doesn’t yet capture, which immediately updates EAC and projected margin.
How does EAC affect revenue recognition?
Percent complete equals cost-to-date divided by EAC, and earned revenue equals percent complete times contract value. So raising EAC lowers percent complete and defers revenue, while lowering it accelerates recognition - which is why keeping EAC current matters.
What is projected over/under?
Projected over/(under) is the revised budget minus the estimate at completion for a cost code. A positive number means the code is projected to finish under budget; a negative number flags a projected overrun - early warning while you can still act.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Forecast where every job lands
Talk to us - we will map it to your stack. Set EAC per code and see projected margin update instantly.
Talk to us