1. What is Percentage Variance?

Percentage variance measures the relative difference between two values expressed as a percentage. It shows how much a value has increased or decreased compared to a reference value.

2. How Does the Calculator Work?

The calculator uses the percentage variance formula:

Where:

• \( Value1 \) — The new or current value
• \( Value2 \) — The original or reference value

Explanation: The formula calculates the difference between two values relative to the original value, then converts it to a percentage.

3. Importance of Percentage Variance

Details: Percentage variance is widely used in business, finance, statistics, and science to analyze changes over time, compare performance, and measure differences between expected and actual results.

4. Using the Calculator

Tips: Enter both values in the same units. Value2 (reference value) cannot be zero. Positive results indicate increase, negative results indicate decrease.

5. Frequently Asked Questions (FAQ)

Q1: What does a positive/negative percentage variance mean?
A: Positive means Value1 is greater than Value2 (increase). Negative means Value1 is less than Value2 (decrease).

Q2: How is percentage variance different from percentage change?
A: They are essentially the same calculation, just different terms for the same concept.

Q3: What if my reference value (Value2) is zero?
A: The calculation is undefined when dividing by zero. You cannot calculate percentage variance when Value2 is zero.

Q4: What are common applications of percentage variance?
A: Financial analysis (budget vs actual), sales performance, scientific experiments, quality control, and any comparison of two related values.

Q5: How should I interpret a 100% variance?
A: A 100% variance means Value1 is exactly double Value2. A -100% variance means Value1 is zero.