Free calculator
Budget Variance Calculator
Compare what you planned with what happened to see exactly how far actuals landed from budget.
Budget Variance Calculator
Compare what you planned with what happened to see exactly how far actuals landed from budget.
$
$
Variance
$6,500
+16.3%Percentage variance
Over budgetvs budget
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What the budget variance tells you
Budget variance is the difference between what you planned to spend or earn and what actually happened. It's the heart of every month-end review, because it tells you where reality diverged from the plan.
Analyzing variance—line by line—helps you catch overspending early, understand what drove it, and build more accurate budgets next cycle.
Formula
Variance % = (Actual − Budget) ÷ Budget × 100
How to use it
- Enter the budgeted amount for the line or period.
- Enter the actual amount.
- Read the dollar variance, percentage variance, and whether you're over or under budget.
Worked example
A $40,000 budget against $46,500 actual is a $6,500 variance—about 16.3% above budget.
FAQ
Common questions
Budget variance is the gap between budgeted and actual figures, shown in dollars and as a percentage. It reveals where performance diverged from the plan.
A favorable variance improves profit (higher revenue or lower cost than planned); an unfavorable variance hurts it. Whether 'over budget' is good or bad depends on whether the line is revenue or cost.
It turns a static budget into a management tool—flagging problems early, explaining what drove them, and making the next budget more accurate.
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