What is the difference between percentage versus plan and percentage to plan?
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If you need to calculate percent variance you can use a simple formula that divides the difference between new number and the original number by the original number.
This formula can be used to calculate things like variance between this year and last year, variance between a budgeted amount with an actual amount, and so on.
How this formula works
The concept of variance requires a baseline value and a "new" value. Once you calculate the difference between the two numbers, you only need to divide by the original value.
In the example, we are calculating a variance from forecast, so we need subtract the fForecast in column C from the Actual in column D, then divide that by the original number in Column C. The result in column E must be formatted using the Percentage number format.
This formula can be used to calculate things like variance between this year and last year, variance between a budgeted amount with an actual amount, and so on.
How this formula works
The concept of variance requires a baseline value and a "new" value. Once you calculate the difference between the two numbers, you only need to divide by the original value.
In the example, we are calculating a variance from forecast, so we need subtract the fForecast in column C from the Actual in column D, then divide that by the original number in Column C. The result in column E must be formatted using the Percentage number format.
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