The following formula is used to calculate the percentage variance:
\[ PV = \left( \frac{NV - OV}{OV} \right) \times 100 \]
Where:
Percentage variance is a measure of how much a number has changed in comparison to its original value, expressed as a percentage. It is commonly used in finance, statistics, and general data analysis to understand the relative change between two numbers. A positive percentage variance indicates an increase, while a negative percentage variance indicates a decrease.
Let's assume the original value (OV) is 100, and the new value (NV) is 120:
Step 1: Subtract the original value from the new value:
\[ NV - OV = 120 - 100 = 20 \]
Step 2: Divide the result by the original value:
\[ \frac{20}{100} = 0.2 \]
Step 3: Multiply the result by 100 to get the percentage:
\[ 0.2 \times 100 = 20\% \]
So, the percentage variance is 20%.