1. What Is Percent Variation?

Percent variation measures the relative difference between actual and budgeted (or expected) values, expressed as a percentage. It helps quantify performance deviations from planned targets in business, finance, and project management.

2. How Does The Calculator Work?

The calculator uses the percent variation formula:

Where:

• \( Actual \) — The actual measured or achieved value
• \( Budgeted \) — The planned, expected, or target value

Interpretation: A positive result indicates actual exceeded budget, while a negative result shows actual fell short of budget expectations.

3. Importance Of Percent Variation Calculation

Details: Percent variation is crucial for performance analysis, budget monitoring, variance analysis, and identifying areas requiring management attention or corrective actions.

4. Using The Calculator

Tips: Enter actual and budgeted values as positive numbers. The budgeted value must be greater than zero. Results show percentage deviation from the budgeted target.

5. Frequently Asked Questions (FAQ)

Q1: What does a positive percent variation mean?
A: A positive variation indicates the actual value exceeded the budgeted value (favorable variance).

Q2: What does a negative percent variation indicate?
A: A negative variation shows the actual value was less than the budgeted value (unfavorable variance).

Q3: Can percent variation exceed 100%?
A: Yes, if the actual value is more than double the budgeted value, the variation will exceed 100%.

Q4: What industries use percent variation analysis?
A: Finance, manufacturing, retail, project management, and any field requiring performance measurement against targets.

Q5: How is percent variation different from percentage change?
A: Percent variation compares actual vs. planned, while percentage change compares current vs. previous period values.