Percentage Net Income Variance v2

The Percent Variance in Net Income calculator computes the percent difference in net income between two periods based on the net income of the previous period and the total (raw) variance in this period.

INSTRUCTIONS: Choose currency units and enter the following:

• (V) This is the variance in net income for this period from the last 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:

• To compute the raw variance (difference) in Net Income, CLICK HERE.
• To compute the Percent in Variance in Net Income based on the net income from two periods, CLICK HERE.

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 shows the percentage of variance in relation to net income.

Resource:

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