Free Tool

Budget vs Actual Variance Calculator

Enter your budgeted and actual numbers. See dollar variance and percentage variance instantly for every line item.

Line Items

CategoryBudgetActual$ Variance% Variance
TOTAL
Formulas
$ Variance = Actual − Budget
% Variance = (Actual − Budget) ÷ Budget × 100
Green = favorable · Red = unfavorable

Do this for 12 months. Automatically.

This calculator gives you a snapshot. The Small Business Budget & Forecast Pack tracks budget vs actual for every month, every quarter, and the full year — with variance analysis, cash flow projection, and a P&L that builds from your actuals.

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How to Calculate Budget Variance

Budget variance is the difference between what you planned to spend (or earn) and what actually happened. It's the most fundamental tool in financial management because it tells you exactly where your business is on track and where it's drifting.

The Two Variance Formulas

Dollar variance is simple: Actual minus Budget. Percentage variance gives you context: (Actual − Budget) ÷ Budget × 100. The dollar amount tells you the impact; the percentage tells you the severity.

Favorable vs Unfavorable Variance

For revenue, positive variance is favorable. For expenses, negative variance is favorable. A common mistake is treating all positive numbers as good.

How Often to Track Variance

Monthly is the minimum. Weekly is better for fast-moving businesses. A 5% budget overrun caught in week one costs you one week of overspending. Caught at month end, it costs four times as much.

What to Do With Variance Data

Small variances (under 5%) are normal. Variances between 5-10% deserve investigation. Variances over 10% need immediate attention and potentially a budget revision.

Common Causes of Budget Variance

Revenue variance is typically driven by volume, pricing, or timing. Expense variance usually comes from unexpected costs, vendor price increases, scope changes, or efficiency gains.