What this calculation means
Actual-versus-theoretical comparison starts with a gross dollar difference, then subtracts documented waste and other approved non-sale usage already included in actual food use.
Subtract an adjustment only if it is included in actual use and has not already been deducted. Combined documented adjustments cannot exceed actual use. The remainder can be positive or negative and does not diagnose theft, waste, or another cause.
How to use this calculator
Align period, food scope, valuation, and sales denominator. Enter actual and theoretical costs, any applicable documented adjustments, and matching food sales.
Formula and variables
Gross variance = Actual food cost − Theoretical food cost; Unexplained variance = Gross variance − Recorded waste − Other approved non-sale usage; Percentage points = Unexplained variance ÷ Food sales × 100
- Actual food costUSD
- Actual food used for the stated period, on the selected accounting basis.
- Theoretical food costUSD
- Recipe-derived food cost for the same period and basis.
- Recorded wasteUSD
- Waste already included in actual usage and documented for this period.
- Other approved non-sale usageUSD
- Other documented usage already included in actual usage, such as authorized staff meals or comps.
- Food salesUSD
- Net food sales for the same period and scope, excluding sales tax and tips.
Dollar results display to cents. The remaining difference as a share of sales displays to two decimal places in percentage points; a halfway value such as 3.125 displays as 3.13.
Understand your result
The primary result is unexplained dollars. Details show gross variance, separate adjustments, actual and theoretical rates on the same sales denominator, the gross gap in percentage points, and the adjusted unexplained gap. These rates are not percentage change relative to theoretical cost.
Worked example
Compare $24,000 actual use with $21,000 theoretical cost; subtract $400 recorded waste and $100 approved non-sale use against $80,000 food sales.
Actual food cost: 24,000 USD
Theoretical food cost: 21,000 USD
Recorded waste: 400 USD
Other approved non-sale usage: 100 USD
Food sales: 80,000 USD
- Gross variance is $24,000 actual − $21,000 theoretical = $3,000.
- Subtract $400 recorded waste and $100 approved non-sale use already included in actual use: $2,500 remains.
- Divide $2,500 by $80,000 food sales and multiply by 100 = 3.125 percentage points; display +3.13.
Example result: $2,500.00 unexplained variance
Frequently asked questions
What does a negative unexplained variance prove?
It proves only that the entered amounts produce a negative remainder on the chosen basis. Review records, periods, and adjustments; arithmetic alone does not establish why it occurred.
Should documented waste always be subtracted?
Only if that amount is already included in actual use and is not already removed elsewhere. Otherwise subtracting it here would count the adjustment twice.