To Complete Performance Index (TCPI) | Formula & Examples

To Complete Performance Index – TCPI is a tool that helps the project manager to estimate the budget required for the project completion.

It also calculates the efficiency required in the remaining allocated cost/budget to achieve a target estimate at the EAC completion.  This budget could be the initially approved budget (BAC) or calculated (Estimate at Completion).

Before digging deep into TCPI, I request you first to read Earned Value Management.

Keep in mind that the TCPI formula will help you crack many questions in the PMP exam.

How to Calculate TCPI?

TCPI can be calculated by dividing the remaining Work by the remaining cost.

TCPI = (Remaining Work) / (Remaining Funds)

The remaining Work can be calculated by subtracting the earned Value from the total budget.

Remaining Work = Total budget – Earned Value

Remaining Work = (BAC – EV)

There could be two different scenarios, under budget and over budget. The calculation for both these scenarios will be different.

Scenario I: Under Budget.

In this scenario, the remaining budget is calculated by subtracting the “actual cost incurred to date” from the “initial budget.”

Remaining funds = Budget at Completion – Actual Cost

Remaining funds = BAC – AC

Similarly, TCPI can be calculated by:

TCPI = (BAC – EV) / (BAC – AC)

Example of TCPI: Case I

You are working on a project to be completed in 48 months. The BAC of the project is 400,000 USD. 24 months have passed, 220,000 USD have been consumed with only 60% work completion. Find out the To Complete Performance Index (TCPI) for this project.

Given Data:

Budget at Completion (BAC) = 400,000 USD

Actual Cost (AC) =220,000 USD

Planned Value (PV) = 50% of 400,000 = 200,000 USD

Earned Value (EV) = 60% of 400,000

= 240,000 USD

Cost Performance Index (CPI) = EV / AC

= 240,000 / 220,000

= 1.09

As 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

TCPI = (BAC – EV) / (BAC – AC)

= (400,000 – 240,000) / (400,000 – 220,000)

= 160,000 / 180,000

= 0.89

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.

Scenario II: Over Budget

The remaining funds will be calculated by subtracting the actual cost to date from the Estimate at Completion in this scenario.

The remaining funds = Estimate at Completion – Actual Cost.

Total remaining funds = EAC – AC

The TCPI will give you the required cost-performance to complete the project with the newly calculated budget.

TCPI= (BAC – EV) / (EAC – AC)

Example of TCPI: Case-II

You are working on a project to be completed in 24 months. The project’s budget is 200,000 USD. 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. Find the To Complete Performance Index (TCPI) for this project.

Given Data:

Budget at Completion (BAC) = 200,000 USD

Actual Cost (AC) = 120,000 USD

Planned Value (PV) = 50% of 200,000 = 100,000 USD

Earned Value (EV) = 40% of 200,000

= 80,000 USD

Cost Performance Index (CPI) = EV / AC

= 80,000 /120,000

= 0.67

Hence, the Cost Performance Index (CPI) = 0.67

So as the cost performance index (CPI) is 0.67, less than one, you are over budget. Now to calculate the new Estimate at Completion and use a formula based on the EAC.

Estimate at Completion (EAC) = BAC / CPI

= 200,000 / 0.67

= 298,507.5 USD

Hence, Estimate at Completion (EAC) = 149,253.73 USD

Now, TCPI = (BAC – EV) / (EAC – AC)

= (200,000 – 80,000) / (298,507.5 – 120,000)

=120,000 / 178,507.5 =0.67

TCPI = 0.67

This implies that we can continue with this CPI of 0.67 to complete the project within budget.

Real-World Example

Suppose you are a project manager for a project to paint 10,000 square feet in 20 days.

This means 500 square feet of paintwork is required per day.

Progress was reviewed after 10 days, and you find out that only 4,000 square feet of work have been done.

Now we are only left with 10 days in which 6,000 square feet of the paintwork is to be done (600 square feet per day).

This can be termed as TCPI for the next 10 days. So the CPI is a measuring tool for past performance, and TCPI is a measuring tool for future projects.

Wrap Up

So to summarize, we can say that To complete the performance index – TCPI is a handy forecasting tool to measure the actual efficiency of the project and what adjustments are required for a successful conclusion of the project within defined parameters.


What is the relationship between TCPI & CPI?

CPI shows the current cost-efficiency of the project, whereas TCPI estimates future cost-efficiency

How is BAC calculated in project management?

BAC can be calculated from the following formula



Download Primavera P6
To download and install Primavera P6 was never that easy as nowadays. By following these steps…

Download Primavera P6

What is PMP?
What does PMP stand for? You are here as you just have heard about PMP, or you know a little already but have some …

What is PMP?

Stakeholer Engagement
A stakeholder is any individual, a group of people or an organization that can affect or be affected positively….

Stakeholer Engagement

Work Breakdown Structure
Work Breakdown Structure is simply a tool that breaks the work down into a structure…

Work Breakdown Structure

Project Management
Project management is how you apply the knowledge, skills, tools, and techniques to get the project management …

Project Management

Gantt Chart
A Gantt chart is also known as bar chart represents a project plan by making each task into a bar and …

Gantt Chart

Planning Engineer
Planning Engineer is considered the right-hand of a Project Manager as he floats the information about project…

Planning Engineer

Team Development
Dr. Bruce W. Tuckman, a psychologist published a theory in 1965 called ‘Tuckman’s Stages of Group Development’.

Team Development

3 thoughts on “To Complete Performance Index (TCPI) | Formula & Examples”

  1. Hi,
    I am studying for my CAPM. I have a worksheet that another person made that calculates answers to the EVM formulas using data entered into other cells. No matter what I do, the CPI and TCPI for “over budget” answers always compute to the same. I noticed on your page that this is the case, as well. I’ve tried messing with the numbers but I always get the same result.
    Have you noticed this?

  2. I think the problem lies with the use of the revised EAC, which was a product of the over budget CPI of .67. Because the revised EAC was used doesn’t it make sense that the TCPI will equal the underperforming CPI of .67? The premise behind TCPI is to figure out what CPI you will need to achieve in order to complete on budget right? So we should be using the original budget minus the AC, which would give you a 1.5 TCPI. This makes more sense on a program that is “over budget” as you would need to be more efficient in execution to make up the difference, right?

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top