Sales Volume Variance Calculator
Answers the Question
How much more did we make than expected?
Calculator for Sales Volume Variance
What Is the Sales Volume Variance?
The sales volume variance provides a calculation of how much more income was generated than expected.
Why Is it Important?
- Knowing how much more (or less) was earned may provide significant insight into customer demand and also working capital for further sales efforts.
Formula(s) to Calculate Sales Volume Variance
- SALES VOLUME VARIANCE = PRICE PER UNIT * (ACTUAL UNITS SOLD - ESTIMATED UNITS SOLD)
- Getting timelines wrong. Some products may see significant shifts in sales volume at different times of the year or after customers gain more experience with them.