# How to Create a Project Budget in Excel – Easy Steps

Hereâ€™s an overview of the dataset:

## Introduction to Project Budget

A project budget includes all the financial information necessary to run a successful project, from resources to materials. It also estimates the project expenditures.

The dataset below contains information about the Project Budget of the XYZ group. Create a project budget using the SUM function and a mathematical formula.

## Step 1 -Creating a Project Budget Header

• Choose a header for the summary and project details. Format the headers in the Home tab.

• Create a header for cost calculation: serial number, particulars, material cost, labor cost, fixed cost, miscellaneous cost, budgeted amount, actual amount, and variance.
• Format the headers in the Home tab.

## Step 2 – Calculating the Project Budget

To calculate the project budget, divide the project into three functions: Function 1, Function 2, and Function 3.

Calculate the total cost of function 1.

• Select J12 and enter the formula below.
`=(D12*E12)+(F12*G12)+H12+I12`
• D12 = units of materials,
• E12 = per unit cost of materials,
• F12 = units of hours,
• G12 = per unit cost of hours,
• H12 = the fixed cost of the project, and
• I12 = the miscellaneous cost of the project.
• Press ENTER. You will get the budgeted amount: \$15,480.00.

• AutoFill the formula to the rest of the cells in column J.

Calculate the variance.

• Enter the subtraction formula.
• Press ENTER.
`=J12-K12`

J12 is the Budgeted amount and K12 is the actual amount of the project.

• AutoFill the formula to the rest of the cellsÂ in column L.
• Calculate the total Fixed Cost of function 1, using the SUM function:
`=SUM(H12:H14)`
• Press ENTER. You will get the total Fixed Cost: \$11,300.00.

• AutoFill the SUM function to the rest of the cells in row 15 to calculate the total miscellaneous cost, total budgeted cost, total actual amount, and total variance.
• Apply the same procedure toÂ Function 2 and Function 3.

Calculate the total cost of the project.

• Enter the formula below.
`=H15+H19+H23`
• H15 = the total fixed cost of function 1,
• H19 = the total fixed cost of function 2, and
• H23 = the total fixed cost of function 3.
• Press ENTER . You will get the total fixed cost of the project:Â \$29,800.00.

• AutoFill the SUM function to the rest of the cells in row 24 to calculate the total miscellaneous cost, total budgeted cost, total actual amount, and total variance.

## Step 3 – Creating a Summary of the Project Budget

• Select E5 and enter the formula:
`=J24`

J24 is the total budgeted cost of the project budget.

• Press ENTER . You will get the total budgeted cost: \$107,787.50.
• Select E6 and enter the formula:
`=K24`

K24 is the total actual cost of the project budget.

• Press ENTER . The total actual cost is \$98,500.00.
• Select E7 and enter the formula.
`=L24`

L24 is the total variance cost.

• Press ENTER. You will get the total variance: \$9,287.50.

## Project Cost Template in Excel

You can use this workbook as a template to calculate a project budget. There is a sheet named Template.

Explore that sheet. You will find fields for units of materials, per unit cost of materials, units of hours, per unit cost of hours, fixed cost, miscellaneous cost, budgeted amount, actual amount, and variance of the project. Enter your values. It will calculate the total budgeted cost, total actual cost, and variance of the project budget.

## Bottom Line

#N/A! error arises when the formula or a function in the formula fails to find the referenced data.

#DIV/0! error happens when a value is divided by zero(0) or the cell reference is blank.

## Related Articles

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Md. Abdur Rahim Rasel

MD. ABDUR RAHIM is a marine engineer proficient in Excel and passionate about programming with VBA. He views programming as an efficient means to save time while managing data, handling files, and engaging with the internet. His interests extend to Rhino3D, Maxsurf C++, AutoCAD, Deep Neural Networks, and Machine Learning, reflecting his versatile skill set. He earned a B.Sc in Naval Architecture & Marine Engineering from BUET, and now he has become a content developer, creating technical content... Read Full Bio

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