Glossary
Forecast variance
Forecast variance is the difference between forecast revenue and actual revenue for a period, tracked over time and by the person or method that made the forecast.
Why it matters
A board trusts a forecast according to its past variance, not its confidence.
How Limerine uses the term
We measure a company's historical variance before proposing any change to how it forecasts.
Related module: Forecast, capacity and board.
How to cite this definition
Limerine Research. "Forecast variance." Limerine Glossary, 2026. https://limerine.com/glossary/forecast-variance