Percentage Variance Calculator (with Formula and Examples)

This tool calculates the percentage variance between two values – old and new.

⭐ Calculator

Enter

  • Old Value
  • New Value

Formula for Calculating Percentage Variance

Percentage Variance = ((New Value − Old Value)/(Old Value)) × 100

Where:

  • New Value is the updated, current, or actual value.
  • Old Value is the original, base, or expected value.

This formula gives the percentage increase or decrease between the old and new values.

What is Percentage Variance?

This quantity represents the percent difference between two values, often referred to as the variance. This calculation is commonly used in fields like finance, business, and statistics to measure changes over time, compare actual outcomes to expected values, or track performance.

It shows how much one value has increased or decreased compared to another value, making it easier to compare differences proportionally.

In business, for example, you might use percentage variance to compare actual sales to budgeted sales, track revenue growth, or analyze costs. In statistics, it’s used to compare datasets or measure deviations from a mean or expected value.

Example Calculation

Let’s say you want to calculate the percentage variance between actual sales of $120,000 and budgeted sales of $100,000.

Using the calculator, the percent variance is 20% meaning actual sales were 20% higher than the budgeted amount.

When to Use a Percentage Variance Calculator

A percentage variance calculator can be useful in a wide range of situations:

  1. Financial Analysis:
    • Comparing actual revenue to projected revenue.
    • Analyzing cost variances between budgeted and actual spending.
  2. Business Performance:
    • Tracking changes in sales performance over different time periods.
    • Comparing monthly or quarterly performance metrics, such as profits or expenses.
  3. Statistical Analysis:
    • Measuring deviations from a mean or standard value.
    • Comparing experimental results to theoretical values.
  4. Tracking Growth or Decline:
    • Calculating percentage changes in market share, customer base, or website traffic.