Project Budget Variance Calculator
The Gap Between What Was Spent and What Was Planned
Budget variance is the most direct financial health check a project has: take what was actually spent, subtract what was planned to be spent, and the sign tells you immediately whether the project is running hot or has room to spare. Expressed as both a dollar figure and a percentage, it's the number finance teams ask for first.
The Formula
Budget Variance = Actual Cost − Planned Budget
Variance % = (Budget Variance / Planned Budget) × 100
Variance % = (Budget Variance / Planned Budget) × 100
A positive variance means the project is over budget; negative means under budget; zero means spending is exactly on plan.
Where This Is Useful
- Monthly budget reviews — a recurring variance calculation flags cost overruns before they compound.
- Vendor and contract oversight — comparing actual invoiced cost against the contracted budget catches scope creep early.
- Portfolio reporting — expressing variance as a percentage lets projects of very different sizes be compared on the same scale.
Worked Example
| Actual cost | Planned budget | Variance | Variance % | Status |
|---|---|---|---|---|
| $54,000.00 | $50,000.00 | $4,000.00 | 8% | Over Budget |
How to Use This Calculator
- Enter Actual Cost — what has actually been spent.
- Enter Planned Budget — what was budgeted for the same scope of work.
- Select Calculate to see the variance in dollars, as a percentage, and a status of Over Budget, Under Budget, or On Budget.
Related Calculations
Set the original budget figure with the Project Cost Estimate Calculator, or get a fuller schedule-plus-cost picture with the Earned Value Calculator.