Free Tool — PPV Calculator
Purchase Price Variance Calculator
Standard price vs actual price × quantity — see per-unit, percentage and total variance, flagged favourable or unfavourable.
| Item | Standard cost | Actual cost | Qty | Variance impact | |
|---|---|---|---|---|---|
| ₹5,000.00 | |||||
| — | |||||
| — |
Total variance (unfavourable)
₹5,000.00
Items compared
1
Biggest overrun: Raw material A — ₹5,000.00 above plan (10% per unit). Investigate this one first.
PPV = (actual price − standard price) × quantity, per item. Red rows cost more than planned (unfavourable); green rows beat the plan. Standard price is your budgeted or negotiated rate.
Catch cost creep before it eats your margin
Purchase price variance measures the gap between what you planned to pay for materials or stock and what you actually paid. Suppliers raise rates quietly, order sizes change, market prices move — PPV is how buying teams spot it early and quantify the impact.
A positive (unfavourable) variance means purchases cost more than the standard — margin is leaking on the way in. A negative (favourable) variance means you beat the plan. Track it per item and per supplier, and feed persistent variances back into your pricing or renegotiation.
PPV calculator FAQs
PPV = (actual price − standard price) × quantity purchased. Buying 500 units at ₹110 against a ₹100 standard gives an unfavourable variance of ₹5,000.
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