# How to Calculate Percent Variance in Excel?

If you’re looking to learn how to calculate percent variance in Excel, you’ve come to the right place! Whether you’re a beginner or an experienced user, this guide will show you the steps you need to take to calculate percent variance in Excel. We’ll go through the formula, explain what it is and how to use it, and provide some examples to help you understand the concept. By the end of this guide, you’ll be an Excel expert and will be able to calculate percent variance in no time. So let’s get started!

**Calculating Percent Variance in Excel:**

To calculate the percent variance in Excel, follow these steps:

- In a new Excel sheet, enter the initial value in cell A1 and the new value in cell A2.
- In cell A3, subtract the initial value from the new value. This will be the “difference” between the two.
- In cell A4, divide the difference by the initial value. This will give you the percent variance.
- In cell A5, multiply the variance by 100 to convert it to a percentage. This is the percent variance.

## What is Percent Variance?

Percent variance is the difference between two values, expressed as a percentage of the original value. It is often used to measure the performance of a company or to compare different companies in the same industry. Percent variance can also be used to compare the performance of a company to a benchmark, such as the S&P 500 index.

Percent variance can be calculated in Excel using several different formulas. The most common formula is the Variance formula, which is used to calculate the variance between two numbers. The formula is as follows: Variance = (Current Value – Original Value) / Original Value.

### How to Calculate Percent Variance in Excel

Calculating percent variance in Excel is relatively straightforward. The first step is to enter the original value and the current value into two different cells. For example, if the original value is 100 and the current value is 120, the original value would be entered into cell A1 and the current value would be entered into cell B1.

Once the values have been entered, the variance formula can be entered into a third cell. The formula should be entered as follows: =(B1-A1)/A1. This will calculate the percent variance between the original value and the current value.

### Using the Variance Formula to Calculate Percent Variance

The Variance formula can also be used to calculate percent variance between multiple values. To do this, the formula must be modified slightly. Instead of entering a single value into the cell, the cell must be given a range of values.

For example, if the original values are in cells A1 through A10 and the current values are in cells B1 through B10, the formula should be entered as follows: =(SUM(B1:B10)-SUM(A1:A10))/SUM(A1:A10). This will calculate the percent variance between the original values and the current values.

### Using the Variance Formula to Calculate Percent Variance of a Single Value

The Variance formula can also be used to calculate the percent variance of a single value. This can be done by entering the value into two cells, one for the original value and one for the current value. The formula should then be entered as follows: =(B1-A1)/A1. This will calculate the percent variance between the original value and the current value.

### Formatting the Result

Once the formula has been entered, the result will be displayed in the cell. This result can be formatted as a percentage by selecting the cell and clicking on the “Percent Style” button in the Home tab of the ribbon.

### Using the Variance Formula to Compare Multiple Values

The Variance formula can also be used to compare multiple values. To do this, the formula must be entered into a range of cells, rather than a single cell. For example, if the original values are in cells A1 through A10 and the current values are in cells B1 through B10, the formula should be entered as follows: =(B1-A1)/A1. This will calculate the percent variance between the original values and the current values.

### Using Other Formulas to Calculate Percent Variance

In addition to the Variance formula, there are several other formulas that can be used to calculate percent variance in Excel. These include the SUMPRODUCT formula, the AVERAGE formula, and the INDEX formula. Each of these formulas has its own specific uses and should be used depending on the specific situation.

## Frequently Asked Questions

### What is Percent Variance?

Percent variance is a measure of how much two numbers differ in relation to one another. It’s a useful tool for comparing two numerical values to see how much the difference between them is relative to the original number. Percent variance is calculated by subtracting the original number from the new number, dividing the result by the original number, then multiplying the result by 100. This gives you the percent variance between the two numbers.

### How to Calculate Percent Variance in Excel?

Calculating percent variance in Excel is easy and straightforward. First, enter the original number into a cell. Then, enter the new number into the next cell. After that, enter the formula =(B2-A2)/A2*100 into the third cell. This formula subtracts the original number (A2) from the new number (B2), divides the result by the original number, and then multiplies the result by 100 to give you the percent variance.

### What is a Good Percent Variance?

A good percent variance depends on the situation. Generally, a percentage variance of 0% would signify no change, while a percentage variance greater than 0% would indicate a positive change. Conversely, a percentage variance of less than 0% would indicate a negative change. The size of the variance can also indicate the severity of the change; for example, a 10% variance may indicate a larger change than a 1% variance.

### How Do You Interpret Percent Variance?

Interpreting percent variance is relatively straightforward. A positive variance (greater than 0%) indicates that the new number is larger than the original number, and a negative variance (less than 0%) indicates that the new number is smaller than the original number. The size of the variance indicates the magnitude of the change; for example, a 10% variance is larger than a 5% variance.

### How to Use Percent Variance in Decision Making?

Percent variance can be a useful tool in decision making. By calculating the percent variance between two numbers, you can easily compare the two and determine how the difference between them impacts the overall situation. For example, if the percent variance between two numbers is large, then the decision maker should take that into account when making their decision. Additionally, if the percent variance between two numbers is negative, then the decision maker should consider whether a further decrease in the number is desirable.

### What is the Formula for Percent Variance?

The formula for percent variance is =(B2-A2)/A2*100. This formula subtracts the original number (A2) from the new number (B2), divides the result by the original number, and then multiplies the result by 100 to give you the percent variance. This formula can easily be entered into a spreadsheet program such as Excel, making it simple to calculate percent variance between two numbers quickly and accurately.

### How to Calculate Percent Variance in Excel – Office 365

Using Excel to calculate percent variance is an effective way to track the difference between two values. You can use the VAR.P formula to quickly and accurately calculate the percent variance. Understanding the formula and its purpose can help you make better decisions when analyzing data. With this easy-to-follow guide, you can now easily calculate percent variance and make better decisions with your data.