The Cost Variance (CV) Calculator helps project managers and financial analysts measure the difference between the planned or budgeted cost of a project and the actual cost incurred. By calculating the cost variance, you can determine whether a project is over or under budget.

## How to Use the Cost Variance Calculator

Follow these steps to calculate the cost variance:

- Enter the planned or budgeted cost of the project.
- Input the actual cost incurred during the project.
- Click the 'Calculate Cost Variance' button to find out whether you are over or under budget.

### Cost Variance Formula

The formula used for calculating the cost variance is:

**Cost Variance (CV):***CV = Planned Cost - Actual Cost*

A positive cost variance means that the project is under budget, while a negative cost variance indicates that the project is over budget.

### Example Calculation

For example, if the planned cost of a project was $50,000 and the actual cost incurred was $45,000, the cost variance would be:

**CV = $50,000 - $45,000 = $5,000**

This positive variance indicates that the project is under budget by $5,000.