Percent Variance Formula

[mdalby]

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

[Excel_Geek]

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.