A revenue and cost forecasts template is a financial projection document used to estimate future revenues and costs based on current project performance data and trends. According to the Project Management Institute (PMI), revenue and cost forecasts are key outputs of the Monitor and Control Finances process in the PMBOK 8 Finance Performance Domain. Accurate forecasting enables project managers and sponsors to identify financial variances early, adjust spending plans proactively, and ensure the project remains financially viable through completion.

What are Revenue and Cost Forecasts?

Revenue and cost forecasts are estimates of future financial performance derived from actual project data combined with assumptions about remaining work. In PMBOK 8, these forecasts are developed and updated continuously throughout the project life cycle using earned value management (EVM) indicators such as the Estimate at Completion (EAC), Estimate to Complete (ETC), and To-Complete Performance Index (TCPI). The forecasts allow the project team and sponsor to compare projected final costs and revenues against the approved budget and funding strategy, triggering corrective action before variances become unrecoverable.

What's Included in This Revenue and Cost Forecasts Template?

• Baseline vs. Actual Summary - Side-by-side comparison of the approved cost baseline against actual costs incurred to date, showing cumulative and period variances by work package or control account.
• Estimate at Completion (EAC) - The projected total cost of completing all project work, calculated using EVM formulas (EAC = BAC/CPI, or bottom-up EAC based on remaining work estimates).
• Estimate to Complete (ETC) - The expected cost to finish all remaining project work from the current status date, derived from the EAC minus actual costs to date.
• Revenue Projections - For projects with revenue components, a projection of expected revenue by period based on milestone completions, deliverable acceptance, or contract payment schedules.
• Cost Performance Index (CPI) Trend - A trend chart of CPI over time to identify whether cost efficiency is improving, stable, or deteriorating, supporting forecast reliability assessment.
• Variance at Completion (VAC) - The projected difference between the Budget at Completion and the Estimate at Completion, indicating whether the project is heading for a cost overrun or underrun.
• Corrective Action Log - A record of approved corrective actions affecting financial performance, including the expected impact on the EAC and the responsible owner.
• Funding Requirements Outlook - A forward-looking view of cash requirements by period to support treasury and cash flow planning.

How to Use This Revenue and Cost Forecasts Template (PMBOK 8)

1. Update the template at each reporting cycle - Forecasts lose value if they are not kept current. Update actuals, recalculate EVM indicators, and revise the EAC at every status cycle defined in the financial management plan.
2. Use multiple EAC formulas and compare results - PMBOK 8 recommends using more than one EAC calculation method. If the formula-based EAC and the bottom-up EAC diverge significantly, investigate the cause before reporting to the sponsor.
3. Report CPI trends, not just point-in-time values - A single CPI reading provides limited insight. A declining CPI trend over three or more periods is a strong signal that intervention is required.
4. Flag variances against the thresholds in the financial management plan - Do not wait until variances are severe. The financial management plan defines threshold levels at which corrective action must be initiated and reported to the sponsor.
5. Link revenue projections to contract milestones - Revenue forecasts must reflect contractual payment triggers accurately. Misalignment between cost burn and revenue recognition creates cash flow risk.
6. Document assumptions driving the ETC - If the ETC is based on a re-estimate rather than the formula, document the assumptions. Undocumented re-estimates are a common audit finding in project financial reviews.

When to Create This Document (PMBOK 8)

Revenue and cost forecasts are first developed after the cost baseline is established and actual costs begin to accumulate. In PMBOK 8, forecasting is a continuous activity within the Monitor and Control Finances process, performed at every reporting cycle throughout project execution and monitoring. The frequency of forecast updates is defined in the financial management plan. A final forecast is produced at project close, comparing the final EAC to the original BAC as part of the project performance review.

Related Templates

• Cost Baseline Template
• Cost Estimates Template
• Financial Management Plan Template
• Status Report Template
• Work Performance Information Template

Complete Guide & Filled-In Example

Get the most out of this template with the two companion resources below:

• Revenue and Cost Forecasts in PMBOK 8 - Complete Guide - Understand the purpose, key elements, and best practices before filling in the template.
• Download the Filled-In Example - Project Phoenix - See exactly how this document was completed for a real $72K website launch project.