The To-Complete Performance Index (TCPI) measures the cost efficiency a project must achieve on its remaining work to hit a specific budget target. Unlike CPI, which measures efficiency already demonstrated, TCPI is forward-looking — it answers the question: how efficiently do we need to perform from this point forward to finish on budget? Two formula variants apply depending on whether the target is the original budget or a revised forecast.
What Is the To-Complete Performance Index (TCPI)?
TCPI is a forward-looking cost efficiency ratio that measures how efficiently the remaining project work must be performed to meet a specified budget target. PMI defines TCPI as the ratio of the cost to finish the outstanding work to the remaining budget, distinguishing it from CPI, which measures efficiency already achieved rather than efficiency still required.
What Is the TCPI Formula?
TCPI has two formula variants: one targeting the original Budget at Completion, and one targeting a revised Estimate at Completion. Selecting the correct variant depends on whether the original budget remains the active target or has been formally superseded by a revised forecast.
- TCPI to achieve BAC = (BAC − EV) / (BAC − AC) — used when the original budget remains the project’s target.
- TCPI to achieve EAC = (BAC − EV) / (EAC − AC) — used when a revised cost forecast has replaced the original budget as the target.
How Do You Calculate TCPI to Achieve the Original Budget?
A project manager calculates TCPI to achieve BAC by dividing the remaining work (BAC minus EV) by the remaining budget (BAC minus AC).
A product launch project has a BAC of $300,000. At the current reporting date, EV = $120,000 and AC = $140,000. No change to the original budget has been approved.
TCPI = ($300,000 − $120,000) / ($300,000 − $140,000) TCPI = $180,000 / $160,000 TCPI = 1.125
A TCPI of 1.125 means the team must perform 12.5% more cost-efficiently on the remaining work than the budget originally assumed, in order to finish within the original $300,000 budget.
How Do You Calculate TCPI to Achieve the Revised Estimate (EAC)?
A project manager calculates TCPI to achieve EAC by dividing the remaining work (BAC minus EV) by the remaining funds against the revised forecast (EAC minus AC).
The same product launch project’s sponsor reviews the 1.125 TCPI result and approves a revised forecast of $310,000, recognizing the original budget is no longer realistic.
TCPI = ($300,000 − $120,000) / ($310,000 − $140,000) TCPI = $180,000 / $170,000 TCPI = 1.06
Against the revised $310,000 target, the team now needs to perform only 6% more efficiently than originally planned — a more achievable bar than the 12.5% required to hit the original budget.
How Do You Choose Which TCPI Formula to Use?
Choosing the correct TCPI formula depends entirely on whether the original budget is still the active target or has been formally replaced by a revised forecast.
- Select the BAC-based formula when no formal change to the budget has been approved and the original BAC remains the goal.
- Select the EAC-based formula when a revised forecast has been approved by the sponsor and now represents the project’s active cost target.
How Do You Interpret TCPI Values?
A TCPI of exactly 1.0 means the remaining work must be completed at exactly the originally planned efficiency rate; a TCPI below 1.0 means the team can perform less efficiently than planned and still hit the target; a TCPI above 1.0 means the team must perform more efficiently than planned to hit the target.
- TCPI = 1.0 — remaining work must proceed at exactly the planned efficiency rate.
- TCPI < 1.0 — the target is achievable even at a lower efficiency than originally planned; a favorable position.
- TCPI > 1.0 — the target requires higher efficiency than originally planned; the higher the value, the more difficult the target becomes.
How Does TCPI Compare to CPI?
CPI measures the cost efficiency a project has already demonstrated, while TCPI measures the cost efficiency the project must still achieve on remaining work — comparing the two reveals whether a target is realistically achievable. If TCPI significantly exceeds current CPI, the project is being asked to suddenly perform far better than its demonstrated track record, a red flag for the target’s feasibility.
- CPI = EV / AC — a backward-looking measure of efficiency already achieved.
- TCPI = (BAC − EV) / (BAC − AC or EAC − AC) — a forward-looking measure of efficiency still required.
What Does a High TCPI Signal?
A TCPI meaningfully higher than the project’s current CPI signals the target may be unrealistic without corrective action, such as adding resources, reducing scope, or formally rebaselining the budget. A project manager who sees TCPI drifting far above CPI has early warning to raise the issue with the sponsor before the gap becomes unrecoverable.
How Does TCPI Appear on the PMP Exam?
The PMP exam tests TCPI through calculation questions requiring the correct formula selection, and through interpretation questions comparing a given TCPI value against CPI or against the value 1.0. Exam scenarios frequently signal which formula to use through language about whether a budget change has been approved.
Sample Question 1: A project has BAC = $400,000, EV = $150,000, and AC = $130,000. No change to the original budget has been approved. What is the TCPI? A) 0.93 B) 1.08 C) 1.54 D) 0.68
Sample Question 2: A project has BAC = $250,000, EV = $90,000, and AC = $110,000. The sponsor has approved a revised EAC of $280,000. What is the TCPI to achieve this revised target? A) 1.14 B) 0.94 C) 1.88 D) 0.85
Sample Question 3: A project’s current CPI is 1.02, and its calculated TCPI is 1.35. What does this indicate? A) The target is easily achievable at the current pace B) The team must perform substantially better than its demonstrated performance to meet the target C) The project is already on track with no concerns D) TCPI is irrelevant once CPI is known
Sample Question 4: A project’s cost overrun stems from a one-time vendor pricing error that will not recur, and management has not approved any change to the original budget. Which TCPI formula should the project manager use? A) TCPI to EAC, since a revised forecast is now the target B) TCPI to BAC, since the original budget remains the target with no approved change C) Either formula, since both produce identical results D) Neither formula applies without a schedule variance calculation
Answers: 1) A — TCPI = ($400,000 − $150,000) / ($400,000 − $130,000) = $250,000 / $270,000 = 0.93. 2) B — TCPI = ($250,000 − $90,000) / ($280,000 − $110,000) = $160,000 / $170,000 = 0.94. 3) B — a TCPI well above current CPI signals the remaining work must be completed far more efficiently than the project has demonstrated so far. 4) B with no approved budget change, the original BAC remains the active target, calling for the BAC-based formula.
Frequently Asked Questions
What Is a “Good” TCPI Value?
A TCPI at or below the project’s current CPI is considered achievable, since it does not require performance beyond what the project has already demonstrated. A TCPI significantly above current CPI is a warning sign, even if it remains mathematically calculable.
Can TCPI Be Negative?
TCPI cannot be negative under standard project conditions, since both the numerator and denominator represent remaining work and remaining budget, which are structured to stay positive in a normally functioning calculation. A negative or undefined result typically indicates a data entry error or a project where the denominator has reached zero or below.
Does TCPI Use Planned Value (PV)?
TCPI does not use Planned Value in its formula — it relies on BAC, EV, AC, and, in the EAC-based variant, EAC. PV factors into schedule-focused metrics like SPI and SV, not into the TCPI calculation.
How Is TCPI Different From Estimate at Completion (EAC)?
TCPI measures the efficiency required on remaining work to hit a target, while EAC forecasts the total project cost based on current performance trends
