1. What Is Percentage Variance?

Percentage variance measures the difference between an actual value and a target value as a percentage of the target. It helps quantify performance against goals in business, finance, and various analytical contexts.

2. How The Calculator Works

The calculator uses the percentage variance formula:

Where:

• Actual — The measured or achieved value
• Target — The expected or goal value

Explanation: A positive percentage indicates the actual exceeds the target, while a negative percentage shows the actual falls short of the target.

3. Importance Of Variance Calculation

Details: Percentage variance analysis is crucial for performance measurement, budget analysis, quality control, and identifying areas that need improvement or adjustment.

4. Using The Calculator

Tips: Enter both actual and target values as numbers. The target value cannot be zero. Results show the percentage difference between actual and target values.

5. Frequently Asked Questions (FAQ)

Q1: What does a positive variance percentage mean?
A: A positive percentage indicates the actual value is higher than the target (favorable variance in most contexts).

Q2: What does a negative variance percentage mean?
A: A negative percentage indicates the actual value is lower than the target (unfavorable variance in most contexts).

Q3: Can the target value be zero?
A: No, division by zero is mathematically undefined. The target must be a non-zero value.

Q4: How is percentage variance different from percentage change?
A: Percentage variance compares actual to target, while percentage change compares current to previous values over time.

Q5: In what fields is percentage variance commonly used?
A: It's widely used in business, finance, manufacturing, project management, and performance analysis across various industries.