Is your project heading for a budget overrun?
Use Earned Value Management to calculate your project's CPI, EAC, and VAC — and predict how far over budget you'll land before it's too late.
Project Details
Total approved budget (BAC)
Actual cost incurred (AC)
Earned value percentage (0–100)
Estimated time to completion
Number of active team members
Approved change requests so far
Budget Health Gauge
Projected Final Cost
$774K
vs. budget of $500K
Projected Overrun
$274K (+54.9%)
9.9% worse than IT / Software avg (45%)
Cost Performance Index
0.78
Significantly over
Estimate at Completion
$640K
EAC = BAC ÷ CPI
Variance at Completion
$140K
VAC negative — overrun projected
Estimate to Complete
$320K
ETC = EAC − Actual Cost
Schedule Performance Index
1.00
Ahead of schedule
Cost of Delay Per Week
$27K
8 team members × $85/hr × 40hrs — every week of delay costs this
This project is tracking toward a $274K overrun
We'll identify the top 3 cost drivers and give you a 60-day recovery plan.
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Frequently Asked Questions
What is a budget overrun?
A budget overrun (also called a cost overrun) occurs when the actual costs of a project exceed its approved budget. According to PMI, 43% of projects experience budget overruns, with an average overrun of 27% of the original budget.
What is Cost Performance Index (CPI)?
CPI = Earned Value ÷ Actual Cost. A CPI below 1.0 means you are spending more than planned for the work completed. A CPI of 0.8 means every $1 spent delivers only $0.80 of value — a 20% overrun trajectory.
What is Estimate at Completion (EAC)?
EAC = Budget at Completion ÷ CPI. It forecasts the total project cost at completion based on current spending efficiency. If your CPI is 0.8 and your budget is $1M, your EAC is $1.25M.
What is Variance at Completion (VAC)?
VAC = Budget at Completion − EAC. A negative VAC means the project is forecast to overrun its budget. A VAC of −$250,000 means you expect to be $250,000 over budget at the end.
Which industries have the worst budget overruns?
Government projects average 53% overruns, IT/Software 45%, Healthcare 32%, Construction 28%, and Manufacturing 18%. See our By Industry page for detailed benchmarks and famous examples.
How can I prevent a budget overrun?
Key strategies include Earned Value Management (track CPI weekly), a formal change control process, maintaining a 10–15% contingency reserve, agile budgeting with rolling forecasts, and monthly independent cost reviews. See our Prevention Guide for the full framework.