Example with formular Variance at Completion, Estimate to Complete (ETC) and To Complete Performance Index (TCPI)

10. Variance at Completion

Formula: Variance at Completion = Budget at Completion – Estimate at Completion 

Variance at Completion calculates how much the project budget is accurate to the planned budget. This will help you to plan and estimate requirements more accurately. 

If the Budget at completion was $20,000 and you find that the Estimate at completion is $25,000, then you could calculate the Variance at completion by calculating: 

Budget at Completion – Estimate at Completion 

20000 – 25000 = -5000 

You will get at Variance at Completion of –5000.  Which means the project is going beyond the initial budget by $5000

11. Estimate to Complete (ETC)

Formula: Estimate to Complete = Estimate at Completion – Actual Cost 

Estimate to Complete or ETC is a measure of how much funds will be required to complete the remaining work. This will help you by giving a dynamic value that is more accurate than your initial estimates. 

For example, if the Estimate to complete is calculated at $25,000 and the Actual Cost incurred is $10,000. In this case you can calculate the Estimate to Complete as follows. 

 Estimate at Completion – Actual Cost 

25000 – 10000 


This means that you will need $15,000 at this point to successfully complete the project. 

12. To Complete Performance Index (TCPI)


TCPI = (Budget at Completion – Earned Value) / (Estimate at Completion – Actual Cost) 

TCPI = (Budget at Completion – Earned Value) / (Budget at Completion – Actual Cost) 

To Complete Performance Index (TCPI) gives the cost performance required to meet project goals based on the budget that is available.  If the Budget at completion is $20,000, Estimate at Completion is $25,000, Earned Value is at $10,000 and Actual Cost is at $ 12,000. In this situation we would calculate TCPI as (Budget at Completion – Earned Value) / (Estimate at Completion – Actual Cost) 

(20000-10000)/ (25000-12000) 

= 10000/13000 = 0.77 

The TCPI would be at 0.77

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