Budget Variance Calculator
Compare budget and actual for up to 10 revenue and cost lines, with variance in rupees and percent and clear favourable or adverse flags.
| Line item | Type | Budget | Actual |
|---|---|---|---|
How to use the free Budget Variance Calculator
- Enter your figures in the fields above – use real numbers from your PMS, channel manager or accounts.
- Tap the button to see the result instantly. Change any value to compare scenarios.
- Copy, print or save the result and use it in your daily or monthly review.
This Budget Variance Calculator runs fully in your browser on mobile or desktop – no sign-up and nothing is uploaded. Free budget variance calculator for hotels. Enter up to 10 lines of budget and actual figures to get variance in ₹ and %, favourable or adverse flags.
What budget variance tells you
A budget is only useful if you compare it with what actually happened. Budget variance analysis does exactly that, line by line, and shows which differences help profit and which hurt it. For a hotel, a monthly variance review is often the fastest way to catch a slipping room rate, an electricity bill that has crept up or commission that is growing faster than revenue.
Variance % = Variance ÷ Budget × 100
Revenue: actual above budget = favourable | Cost: actual below budget = favourable
How to use this calculator
- Enter up to 10 lines from your monthly P&L, such as room revenue, F&B revenue, salaries, food cost, energy and OTA commission.
- Mark each line as revenue or cost, so the calculator knows which direction is good.
- Set a threshold, for example 5%. Adverse lines beyond it are listed for follow-up.
- Read the net line at the bottom. It shows whether the period as a whole beat or missed budget.
Reading the result like a manager
- Look at revenue and cost together. Food cost under budget with F&B revenue also under budget may simply mean fewer covers, not better control.
- Split room revenue variance. Was it fewer rooms sold or a lower rate? The ADR calculator and occupancy calculator help you find out.
- Check timing. A repair bill paid this month but budgeted next month is a timing difference, not overspending.
- Act on the big few. Two or three adverse lines usually explain most of the gap. Fix those first.
Building a better budget next time
If the same line misses every month, the budget itself may be unrealistic. Rebuild it from drivers such as rooms, occupancy and cost per occupied room, rather than adding a flat percentage to last year. The hotel budget and P&L forecaster helps you build a driver-based budget for the next year.
Frequently asked questions
What is a favourable variance?
For revenue, a favourable variance means actual revenue was higher than budget. For costs, it means actual spending was lower than budget. Both improve profit.
What variance percentage should I investigate?
Many hotels review any adverse line more than 5% to 10% off budget, plus any line with a large rupee gap even if the percentage is small.
Should I compare budget variance monthly or yearly?
Monthly. A monthly review catches problems while you can still act, and the year-to-date total shows the overall trend.
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