In essence, EAC helps project managers forecast the total cost of the project based on its current performance

EAC, or Estimate at Completion, is a forecasting tool used in project management. It provides an estimate of the total cost of a project at its completion, based on the project's current performance. Here's a step-by-step explanation:

1. Identify the project's actual cost (AC): This is the total cost that has been spent on the project up to the current point.

2. Calculate the earned value (EV): This is the value of the work that has been completed so far. It's calculated by multiplying the percentage of the total work that has been completed by the total project budget.

3. Calculate the cost performance index (CPI): This is a measure of the cost efficiency of the project. It's calculated by dividing the earned value by the actual cost.

4. Calculate the estimate to complete (ETC): This is an estimate of the additional cost required to complete the project. It's calculated by dividing the remaining work (total project budget minus earned value) by the cost performance index.

5. Finally, calculate the EAC: This is an estimate of the total cost of the project at completion. It's calculated by adding the actual cost and the estimate to complete.

So, in essence, EAC helps project managers forecast the total cost of the project based on its current performance.