Budget vs Actual Variance Calculator

How the budget vs actual variance calculator works

Use the same period, currency and reporting scope for budget and actual. Each entered amount rounds half-up to cents before calculation. Modeled profit is revenue less labor, materials and the entered other-cost category; enter other costs without repeating the two named categories.

The table shows actual less budget for every line. For costs, an increase in spending has a negative profit effect; a cost saving has a positive effect. Revenue and cost profit effects reconcile to the difference between actual and budget profit. The profit percentage variance uses the absolute budget profit as its denominator so losses do not silently reverse the interpretation.

A zero budget profit gives an undefined percentage variance. This is a financial reconciliation, not a standard-cost price/usage analysis, a flexible budget or a causal explanation. Losses remain visible. Tax, financing and exceptional items appear only if consistently included in the entered scope.

Worked example

Budget revenue of 100,000 less labor 30,000, materials 25,000 and other costs 20,000 gives 25,000 profit. Actual revenue 110,000 less 34,000, 27,000 and 18,000 gives 31,000. Revenue adds 10,000, labor subtracts 4,000, materials subtract 2,000 and other-cost savings add 2,000: profit is 6,000 above budget, or 24% of absolute budget profit.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• CFI: budget-to-actual comparative periods