Compare what you planned with what actually happened. Enter each budget line with its budgeted and actual amount to see the dollar and percent variance, whether it is favorable or unfavorable, which lines need attention, and the overall effect on profit.
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Separate values with a comma and a space, a tab (paste from a spreadsheet) or a semicolon. Add "income" or "expense" at the end of a line to set its type.
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Enter your values to see the result.
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How to use the Budget Variance Calculator
Enter one line per budget item: name, budgeted amount, actual amount (for example Rent, 9000, 9000).
Mark income lines by adding income at the end, or set all untyped lines to income with the selector.
Set a review threshold, such as 5% or 10%, to flag unfavorable variances worth investigating.
Read the totals: net profit variance for mixed budgets, or total spending or income variance.
Check the table and chart, then download the variance report as CSV or copy the summary.
Budget variance formulas
Variance = actual − budget
Variance % = (actual − budget) ÷ budget × 100
Expense line: favorable when actual < budget, unfavorable when actual > budget
Income line: favorable when actual > budget, unfavorable when actual < budget
Net profit variance = (actual income − actual expenses) − (budgeted income − budgeted expenses)
Example with the default data: income came in at $133,900 against a $138,000 budget (−$4,100, unfavorable), while expenses were $70,700 against a $68,700 budget (+$2,000, unfavorable). Actual profit of $63,200 versus budgeted profit of $69,300 gives a net profit variance of −$6,100.
Reading a variance at a glance
Line type
Actual vs. budget
Sign of variance
Result
Expense
Spent more than planned
Positive (+)
Unfavorable
Expense
Spent less than planned
Negative (−)
Favorable
Income
Earned more than planned
Positive (+)
Favorable
Income
Earned less than planned
Negative (−)
Unfavorable
Tips for useful variance analysis
Use materiality on both axes. A 40% overspend on a $50 line matters less than a 4% overspend on payroll. Review lines that are large in dollars or in percent.
Separate timing from real changes. An invoice paid early creates an unfavorable variance this month and a favorable one next month. Year-to-date comparisons smooth this out.
Split price and volume. If materials cost more, check whether you paid more per unit or bought more units because sales were higher.
A favorable variance is not always good. Underspending on maintenance or marketing can save money now and cost more later.
Update the forecast. When a variance is permanent, revise the rest-of-year forecast instead of explaining the same gap every month.
Frequently asked questions
How do you calculate budget variance?
Budget variance = actual amount − budgeted amount. Variance percentage = variance ÷ budgeted amount × 100. If marketing was budgeted at $6,500 and actually cost $8,200, the variance is +$1,700, or +26.2% over budget.
What is a favorable vs. unfavorable variance?
A favorable variance improves profit compared with the plan; an unfavorable one reduces it. For expenses, spending less than budget is favorable. For income, earning more than budget is favorable. That is why the same +$1,000 variance can be good on a sales line and bad on a cost line.
What percentage variance is acceptable?
There is no universal rule. Many teams investigate variances above a set percentage (often 5% or 10%) or above a dollar amount, whichever is more meaningful. Small lines can show large percentages with little money at stake, so look at both measures.
How do I enter income and expense lines together?
Add the word income (or revenue) as the last value on each income line, for example "Sales, 120000, 112500, income". Lines without a type follow the selector, which defaults to expenses. The calculator then reports the net profit variance: actual profit minus budgeted profit.
What does it mean if the budget is zero?
The dollar variance is still shown, but a percentage of zero cannot be calculated, so it shows n/a. Any unbudgeted spending is flagged for review because it was not planned.
What causes budget variances?
Common causes are price changes (paying more or less per unit), volume changes (selling or using more or fewer units), timing (a bill landing in a different month than planned), one-off events, and simply an unrealistic budget. Identifying the cause tells you whether to act or to update the forecast.
Can I paste data from Excel or Google Sheets?
Yes. Copy three columns (name, budget, actual) and paste them into the box; tab-separated rows are recognized. You can add a fourth column with income or expense to set each line's type.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.