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"Understanding Percentage of Variance: Analyzing Change and Deviation"

The Excel formula to calculate the percentage of variance compares two values and expresses the difference between them as a percentage. It is useful for analyzing the change or deviation between two numbers and understanding the relative impact of the difference. The formula to calculate the percentage of variance is: Percentage of Variance = ((New Value - Old Value) / Old Value) * 100 Here's a breakdown of the formula: Subtract the old value from the new value: New Value - Old Value. Divide the result by the old value: (New Value - Old Value) / Old Value. Multiply the result by 100 to get the percentage: ((New Value - Old Value) / Old Value) * 100. The result will be a positive or negative percentage, indicating the increase or decrease between the two values. For example, if the old value is 100 and the new value is 120, the calculation would be: Percentage of Variance = ((120 - 100) / 100) * 100 = 20% This means that the new value (120) is 20% higher than the old value (100). You can use this formula in Excel by substituting the appropriate cell references for the old and new values.