Business
Price Volume Mix Variance Calculator
Reconcile two-product price and contribution-volume variances from budget and actual units, prices, and budget unit margins. Review a signed variance bridge, exact scenarios, method notes, examples, limitations, and a professional PDF report.
Budget total units-
Actual total units-
Product A price variance-
Product B price variance-
Total price variance-
Budget mix weighted unit margin-
Total quantity variance at budget mix-
Product A mix variance-
Product B mix variance-
Total sales mix variance-
Product A volume-plus-mix variance-
Product B volume-plus-mix variance-
Total quantity and mix variance-
Combined price, quantity, and mix variance-
Decision view
Signed price, quantity, and mix variance bridge
Signed price, quantity, and mix variance bridgeTotal price, portfolio quantity, and product-mix effects remain signed and reconcile directly to the combined variance.
Price and volume variance responseProduct A actual price is varied across the exact scenario rows; signed price, volume, and combined effects remain separate monetary bars.
Exact scenario comparisonActual price A changes while all other entered assumptions remain constant.
| Actual price A | Budget total units | Actual total units | Product A price variance | Product B price variance | Total price variance | Budget mix weighted unit margin | Total quantity variance at budget mix | Product A mix variance | Product B mix variance | Total sales mix variance | Product A volume-plus-mix variance | Product B volume-plus-mix variance | Total quantity and mix variance | Combined price, quantity, and mix variance |
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Period-by-period detail
Price, quantity, and mix variance ledger
How to use Price Volume Mix Variance Calculator
- Enter budget units, budget price, budget unit margin, actual units, and actual price for both products.
- Read each signed product variance before relying on the total.
- Confirm that budget margins use the same cost definition and period.
- Use the variance bridge to identify whether price or volume is the dominant driver.
Calculator guide
Understanding Price Volume Mix Variance Calculator
A price–volume analysis separates what changed because actual selling prices moved from budget from what changed because unit volumes moved. Product A and Product B remain visible so favorable and unfavorable effects do not disappear inside one net number.
Calculation method
How the calculation works
Separate two-product price, total-quantity, and sales-mix effects at budget contribution margins, then reconcile all three effects to the combined variance. Price variance for each product equals actual units multiplied by actual price minus budget price. Volume contribution variance equals actual units minus budget units, multiplied by budget unit contribution margin. The displayed combined variance adds those four effects.
Variance investigation
Move from bridge to source records
The bridge identifies where to look; it does not explain the commercial cause by itself.
Worked situations
Practical examples
- Lower Product A price can be unfavorable even when A unit volume rises.
- Higher Product B price may offset a volume shortfall.
- Two favorable product effects can still be outweighed by one large unfavorable effect.
Better inputs
Useful tips
- Retain signs throughout the calculation and round only displayed values.
- Investigate rebates, credits, FX, and returns before labeling a difference as price.
- Use a dedicated constant-volume mix model when formal mix variance is required.
Before relying on the result
Limitations and common mistakes
- This page does not isolate formal sales-mix variance from total volume variance.
- Budget unit margin is treated as constant for the volume effect.
- New products, discontinued items, currency changes, returns, and cost variances require separate analysis.
Reference
Key terms
- Price variance
- Actual units multiplied by the difference between actual and budget price.
- Volume contribution variance
- Unit-volume difference valued at budget contribution margin.
- Favorable variance
- A signed effect that improves the selected contribution measure.
- Mix variance
- Effect of a changed product share at a controlled total volume.
Important note
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Frequently asked questions
Why use actual units for price variance?
It isolates the price difference on the units actually sold.
Why use budget margin for volume variance?
It values extra or missing units on the planned contribution basis without mixing in actual price effects.
Does the combined figure equal total profit variance?
Not necessarily. Cost, mix, FX, inventory, and other operating effects may be outside this bridge.
Can unfavorable and favorable product effects offset?
Yes, which is why the product-level values should be reviewed before the net total.