Budget Variance Calculator
Find how far actual spend or revenue deviated from budget.
How budget variance works
Budget variance measures how far actual spend or revenue deviated from what was budgeted — a core financial-control metric used in monthly and quarterly reviews.
Enter the budgeted amount and the actual amount for the same line item and period. The calculator returns the variance in absolute terms and as a percentage of budget.
For cost line items, a positive variance (actual over budget) usually signals overspend; for revenue line items, a positive variance usually signals outperformance — read the sign in the context of what you're measuring.
The formula
Variance = Actual − Budgeted. Variance % = Variance ÷ |Budgeted| × 100.
Subtract the budgeted amount from the actual amount for the variance. Divide by the absolute value of the budgeted amount and multiply by 100 for the percentage.
Worked example
$10,000 budgeted, $11,500 actual
$11,500 − $10,000 = $1,500 over budget, a 15% variance.
Frequently asked questions
Is a positive variance always bad?
Not necessarily — it depends on what you're measuring. Overspending against a cost budget is usually unfavorable; exceeding a revenue target is usually favorable.
What happens if the budgeted amount is zero?
The variance amount is still calculated, but a percentage is undefined (dividing by zero has no meaning), so the calculator reports the percentage as not applicable in that case.
Should I track variance monthly or cumulatively?
Both are useful — monthly variance catches emerging trends early, while cumulative (year-to-date) variance shows the overall budget health for the period.
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