The Cost Variance For A Project Is Calculated By

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:

  1. Enter the budgeted cost in the “Enter Budget” field.
  2. Enter the actual cost incurred in the “Enter Actual Cost” field.
  3. 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.


  1. Q: What is Cost Variance? A: Cost Variance is the numerical difference between the budgeted cost and the actual cost incurred in a project.
  2. 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.

Leave a Comment