Finance
Actual-to-Budget Ratio
Actual-to-Budget Ratio shows the actual value as a percentage of the planned or target value. When the planned value is not zero, it is calculated as (Actual / Planned) × 100.
Simple example
If the monthly sales target is 100,000 TL and actual sales are 120,000 TL, the actual-to-budget ratio is (120,000 / 100,000) × 100 = 120%. This means the sales target was exceeded by 20%.
Why does it matter?
It shows how much of a target has been achieved. However, a rate above 100% does not always mean success: for sales, it may mean the target was exceeded; for expenses, it may mean the budget was exceeded. Interpret the result in light of the purpose of the item being measured.