Variance at completion (VAC) is a formula that measures how close a project is running to the budgeted amount. It is the difference from the budget at completion (BAC) and the estimate at completion (EAC). So the formula is
- VAC = BAC - EAC
If the VAC is a positive number, the project completed within the budget. If it is negative, the project went over budget.
The budget is determined at the beginning of the project. The estimate at completion (EAC) is adjusted to include the actual amounts spent so far along with the budget for what still needs to be done -- the estimate to complete (ETC).
- PMP | Math on Variance at Completion
- Passionate Project Manager: Budget at Completion versus Variance at Completion (CONCEPT 42) by Belinda. 11/01/2011.