How to calculate revenue and expense variance to the budget Before analyzing what budget variances mean, they must first be calculated.

We'll calculate the historical monthly variance of the S&P 500 Total Return Index over a five-year period from August 2010 through July 2015 -- that's 60 observations (5 years x 12 months).

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To calculate statistical variance in Microsoft Excel, use the built-in Excel function VAR.

Learn how to calculate Value at Risk (VaR) to effectively assess financial risks in portfolios, using historical, variance-covariance, and Monte Carlo methods.