Project Budget at Completion (BAC) Calculator
What is Budget at Completion (BAC)?
In project management and Earned Value Management (EVM), Budget at Completion (BAC) represents the total sum of all budgets established for the work to be performed. It is the baseline against which project performance is measured.
BAC is determined during the planning phase of the project and remains constant unless a formal change request is approved. It includes the sum of all work package budgets, planning packages, and the management or contingency reserves allocated to the project scope.
The BAC Formula
While the simplest way to view BAC is the sum of all project costs, it is calculated as:
Example Calculation
Scenario: A software development project has the following estimates:
- Labor: $60,000 (Developers and Designers)
- Materials: $5,000 (Cloud hosting and licenses)
- Subcontractors: $10,000 (Security audit firm)
- Contingency: 15% (Risk buffer)
Step 1: Sum base costs = $60,000 + $5,000 + $10,000 = $75,000.
Step 2: Apply contingency = $75,000 * 1.15 = $86,250.
In this case, your BAC is $86,250.
Why BAC Matters in EVM
BAC is essential for calculating other critical project metrics:
- Variance at Completion (VAC): BAC – EAC (Estimate at Completion).
- Estimate to Complete (ETC): How much more money is needed.
- To-Complete Performance Index (TCPI): The efficiency required to finish within the BAC.