How to Calculate Percent of Variance
- 1). Find the first data point. For example, assume an investor wants to compare income from a company between 2008 and 2009. The first data point is the income for 2008. Assume this amount is $500.
- 2). Find the second data point. In the example, this is the income for 2009. Assume this amount is $1,200.
- 3). Subtract the first data point from the second data point. In the example, $1,200 minus $500 equals $700. This is the change between data points.
- 4). Divide the change between data points by the first data point and multiply the result by 100. In the example, $700 divided by $500 equals 1.4. So, the percent of variance between 2008 and 2009 is 1.4 times 100, or 140 percent.