Percent Variance Formula
 

What should be the correct formula for % Variance?

(New - Old) / Old??

If I have a forecast and an actual would the formula be:

(Actual - Forecast) / Forecast

Thanks,

MD


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mdalby
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It's really relative to what you're trying to convey:

Example, if you'd like to say that the actual results varied from the
forecast by x%, you'd use =(actual - forecast)/forecast.

If you'd like to say that the forecast was off by x%, use

= (forecast - actual)/actual.


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Excel_Geek


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