Budget Variance Calculator
Calculate budget variance and percentage deviation
About this calculator
The Budget Variance Calculator helps you analyze the difference between your planned budget and actual spending or revenue. This essential financial tool calculates both the absolute variance amount and percentage deviation, enabling businesses and individuals to identify budget performance gaps. By understanding these variances, you can make informed decisions about future budgeting, identify areas of concern, and improve financial planning accuracy for better fiscal management.
How to use
Enter your budgeted amount and actual amount into the respective fields. Click calculate to instantly see the variance amount (difference between budgeted and actual) and variance percentage. Positive variance indicates you spent less than budgeted, while negative variance shows overspending or underperformance in revenue.
Frequently asked questions
What does a negative budget variance mean?
A negative variance indicates you spent more than budgeted or earned less than planned, signaling potential budget issues that need attention.
How is budget variance percentage calculated?
Budget variance percentage is calculated by dividing the variance amount by the budgeted amount, then multiplying by 100 for the percentage.
What is considered a good budget variance?
Generally, a variance within 5-10% is acceptable, but this depends on your industry, budget size, and specific financial goals.