Completion Costs

An ongoing project just crossed a milestone with a current cost of $3,500. The original budget baselined $3,000 to reach this checkpoint, and allocated $5,000 total to completely close out the effort. What is the projected estimation cost at project completion? At the current rate, how much will the project be over budget?

Hint
Cost Performance Index = ratio of earned value over how much we actually spent to date. A ratio of 1 means we are on track. A ratio of <1 means we are running behind, and a ratio of >1 means we are ahead.

$$$ETC=\frac{(BAC-EV)}{CPI}$$$
ETC = Estimated Cost to Completion
BAC = Budget at Completion (baseline)
EV = Earned Value
CPI = Cost Performance Index
First, let's calculate the Cost Performance Index, which is a ratio of earned value divided by how much we actually spent.
$3,000 / $3500 = 0.857
Since our ratio is <1, we are running a bit behind.

Next, let's determine the remaining estimated cost to completion using the equation in the hint section.
($5,000 - $3,000) / 0.857 = $2,333.72

Total estimated cost at completion (how much we spent + our projected remaining costs):
$3,500 + $2,333.72 = $5,833.72

Finding the extra cost at the current rate:
$5,833.72 - $5,000 = $833.72
Total Estimated Cost at Completion = $5,833.72
Extra Cost at Current Rate = $833.72