Accounting Share · Budgets & planning
Flexible Budget Cost Variance Calculator
Compare actual costs with a budget flexed to actual activity, rather than with a budget for a different output level.
The interactive calculator requires JavaScript. The formula and worked example below remain available.
01 / Enter your figures
Make the numbers yours.
Use one currency and consistent time periods. Amounts are shown in your input currency units; no currency conversion is performed.
02 / See the working
Your calculation
Enter your figures, then choose Calculate. Or load the worked example.
03 / Understand the method
Formula and method
Flexible budget = Actual activity × Budgeted variable rate + Budgeted fixed cost
Compare actual costs with a budget flexed to actual activity, rather than with a budget for a different output level.
How to use this calculator
- Collect the figures for the same entity, currency and reporting period.
- Enter each input using its label and unit. For percentages, enter 15 to mean 15%.
- Choose Calculate, inspect the breakdown and compare the result with your assumptions.
- Change one input to explore a scenario. Recalculate after edits; display rounding does not round the underlying calculation.
Inputs at a glance
- Actual activity units: A nonnegative numeric input in the units specified by the label.
- Budgeted variable cost per unit: A nonnegative numeric input in the units specified by the label.
- Budgeted fixed cost: A nonnegative numeric input in the units specified by the label.
- Actual total cost: A nonnegative numeric input in the units specified by the label.
Worked example
Follow one calculation.
- Actual activity units
- 1200
- Budgeted variable cost per unit
- 5
- Budgeted fixed cost
- 10000
- Actual total cost
- 16500
- Calculated result
- 500
Unfavourable cost variance: actual cost exceeds the relevant standard.
Assumptions and interpretation
The variance is a total spending difference against the simple flexible model. It does not separate price, efficiency, capacity or volume effects.
The output is a model based on the figures entered. Check source records and use the accounting or contractual definitions relevant to your task before relying on a result.
Questions about this tool
What does the flexible budget cost variance calculation measure?
Compare actual costs with a budget flexed to actual activity, rather than with a budget for a different output level.
Which assumptions can change the result?
The variance is a total spending difference against the simple flexible model. It does not separate price, efficiency, capacity or volume effects.
Why can displayed totals differ slightly from my spreadsheet?
Calculations use the unrounded input values. Only the display is rounded. Use four or six decimal places to inspect small differences, and check the timing, sign conventions and rounding policy in your spreadsheet.
Reference and further learning
Budgeting study reference. These original learning examples apply the displayed formula; the reference does not certify or endorse this calculator.
Look up an accounting term · Practise with accounting questions
Formula and worked example checked 4 November 2026. Calculations run in your browser without sending the entered figures to Accounting Share. Report a calculation issue with the tool name, example inputs and expected result; avoid sharing confidential records.
