Calculate estimated final cost (CFE)
Applying the earned value method to projects: benefits and pitfalls to avoid

There are three methods for estimating the CFE (source PMI):

• the CFE based on the estimated cost to completion using the budgeted rate: CFE = CR + (BAA – VA). Where BAA is the budget at completion;

• the CFE based on the estimated cost of completion using the IPD: CFE = BAA / IPD ;

• CFE based on the estimated cost to complete using CPI and RPI: CFE = CR + [(BAA – VA) / (CPI _weighted x RPI _weighted ).

Let's take an example to clarify what we're talking about.

Let's imagine that our project has a budget at completion of 100 K€, that the cost actually spent to date is 50 K€, the earned value being 20 K€ and the planned value...