**Introduction:** In project management, understanding the cost variance is crucial for effective financial management. This calculator simplifies the process, allowing you to determine the cost variance with ease.

**Formula:** The Cost Variance for a project is calculated by subtracting the actual cost from the budgeted cost.

**How to Use:**

- Enter the budgeted cost in the “Enter Budget” field.
- Enter the actual cost incurred in the “Enter Actual Cost” field.
- Click the “Calculate” button to obtain the Cost Variance.

**Example:** Suppose the budgeted cost is $10,000, and the actual cost is $8,000. The Cost Variance would be $2,000.

**FAQs:**

**Q:**What is Cost Variance?**A:**Cost Variance is the numerical difference between the budgeted cost and the actual cost incurred in a project.**Q:**Why is Cost Variance important?**A:**Cost Variance helps assess the financial performance of a project, indicating if it is under or over budget.

**Conclusion:** Efficient project management requires a keen understanding of financial metrics. By utilizing this Cost Variance calculator, you can make informed decisions and keep your project’s finances on track.