![]() Hence, Estimate at Completion (EAC) = 149,253.73 USD Now to calculate the new Estimate at Completion and use a formula based on the EAC. So as the cost performance index (CPI) is 0.67, less than one, you are over budget. Hence, the Cost Performance Index (CPI) = 0.67 Find the To Complete Performance Index (TCPI) for this project. 1 year has passed, and 120,000 USD has been consumed, but on closer analysis, you find out that only 40% of the Work has been completed so far. You are working on a project to be completed in 24 months. The TCPI will give you the required cost-performance to complete the project with the newly calculated budget. The remaining funds = Estimate at Completion – Actual Cost. The remaining funds will be calculated by subtracting the actual cost to date from the Estimate at Completion in this scenario. This means that for the remaining part of the project, we need to continue with a CPI of 0.89 to complete the project within the given budget. Planned Value (PV) = 50% of 400,000 = 200,000 USDĪs the cost performance index (CPI) is 1.09, greater than 1, you are under budget so the following formula will be used to calculate TCPI Find out the To Complete Performance Index (TCPI) for this project. 24 months have passed, 220,000 USD have been consumed with only 60% work completion. You are working on a project to be completed in 48 months. ![]() Remaining funds = Budget at Completion – Actual Cost In this scenario, the remaining budget is calculated by subtracting the “actual cost incurred to date” from the “initial budget.” The calculation for both these scenarios will be different. There could be two different scenarios, under budget and over budget. Remaining Work = Total budget – Earned Value The remaining Work can be calculated by subtracting the earned Value from the total budget. TCPI = (Remaining Work) / (Remaining Funds) TCPI can be calculated by dividing the remaining Work by the remaining cost.
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