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Standard Cost Variance Calculator

Work out standard cost variance instantly with clear inputs, formula shown and shareable results.

About Standard Cost Variance Calculator

A standard cost variance splits the difference between plan and actual into a rate effect and a volume effect. The rate effect values the per-unit cost difference at actual volume; the volume effect values the output shortfall at standard cost, so the two do not double-count.

Formulas

Cost variance

Variance = (Standard cost - Actual cost) x Actual units

Volume variance

Volume variance = (Actual units - Budgeted units) x Standard cost

Worked example

With the default values below, Standard Cost Variance Calculator returns Cost variance (positive = favourable) of -$10,800.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Standard cost per unit
42
Actual cost per unit
45.6
Actual units produced
3,000
Budgeted units
3,200

Results

Cost variance (positive = favourable)
-$10,800.00
Variance per unit
-$3.60
Actual cost overrun vs standard
8.57%
Volume variance at standard cost
-$8,400.00

Step by step

  1. 1Values used
  2. 2Cost variance
  3. 3Volume variance
  4. 4Cost variance (positive = favourable)= -10,800.00
  5. 5Variance per unit= -3.60
  6. 6Actual cost overrun vs standard= 8.57
  7. 7Volume variance at standard cost= -8,400.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why is a positive number favourable here?

Because it means actual cost came in below standard. Many ledgers show the opposite sign convention, so check before you report it.

Do the two variances add to the budget difference?

Broadly yes, but only once you also account for any change in the standard itself during the period.

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