Percentage Net Income Variance

The Percent Variance in Net Income calculator computes the percent difference in net income between two periods.

INSTRUCTIONS: Choose currency units and enter the following:

• (NT) This is the net income for this period.
• (NL) This is the net income from the last period.

% Net Income Variance: The calculator returns the percent variance in net income

Related Calculators:

• Variance in Net Income
• Percent in Variance in Net Income based on the net income from two periods
• Portfolio Variance with Two Assets

THe Math / Science

In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. 

This equation in this calculator shows the percentage of variance in relation to net income between any two periods (e.g. this and last).  For example, the Net Income from the previous (last) period may have been $355,000, and the Net Income from this period $302,000.  The Percent Variance in Net Income would be calculated as follows:

`PVN = (NT - NL)/(NL) = ($302,000 - $355,000)/($355,000) = -14.92%`

Resource:

• Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.