1. What Is Percent Over Budget?

Percent Over Budget is a financial metric that calculates how much actual spending exceeds the planned budget. It's expressed as a percentage and helps organizations track financial performance against their financial plans.

2. How Does The Calculator Work?

The calculator uses the percent over budget formula:

Where:

• \( Actual \) — The actual amount spent (in dollars)
• \( Budget \) — The planned budget amount (in dollars)

Explanation: A positive result indicates spending exceeded the budget, while a negative result indicates spending was under budget.

3. Importance Of Budget Variance Analysis

Details: Calculating percent over budget is essential for financial management, helping organizations identify spending patterns, control costs, and make informed decisions for future budgeting.

4. Using The Calculator

Tips: Enter both actual and budget amounts in dollars. The budget must be greater than zero. The calculator will show the percentage by which actual spending exceeded or fell below the budget.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates that actual spending was under budget, which is generally favorable.

Q2: How is this different from percent variance?
A: Percent over budget specifically measures overspending, while percent variance can be calculated for any comparison between actual and planned values.

Q3: What's considered an acceptable percent over budget?
A: This varies by organization and context, but typically anything over 5-10% may require investigation and explanation.

Q4: Can I use this for personal budgeting?
A: Yes, this calculation works for both personal and organizational budgeting.

Q5: What if my actual spending is less than budget?
A: The calculator will show a negative percentage, indicating you spent less than planned.