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.

**Read More:** How to Create an Operating Budget in Excel

## 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 to
**Â 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.**

**Read More: **How to Create a Business Budget in Excel

## 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.

**Download Practice Workbook**

Download the practice workbook.

**Related Articles**

- How to Prepare Budget for a Company in Excel
- How to Prepare Annual Budget for a Company in Excel
- How to Calculate Remaining Budget Using Formula in Excel

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