Correction Factor Budget Calculators, Created by David Alderoty, September, 2009
Note: if you're looking for instructions for the online version of the Correction Factor Budget Calculator , scroll all the way down past the download sections, until you see the words Instructions For The Online Basic Correction Factor Budget Calculator
Free Downloads: Special Budget Calculators in the Excel and Openoffice.Org Format
If you want a large budget calculator that can handle up to 112 expenses, with correction factors, in the Excel format, left click on these words. This budget calculator is the Basic Correction Factor Budget Calculator-112, and it is similar to the above, except it is large enough for a business or small organization.
Downloads For More Complex Correction Factor Budget Calculators
The following budget calculators calculate correction factors for each individual item that was entered, as well as for the total expenses and income. In addition, these devices will graph the results. You may find that these devices are too complex for a practical budget, in which case you should use the devices presented above.
If you want a budget calculation device, in the Excel format, that calculates correction factors, for each item, and graphs the results, left click on these words (Prediction Budget Calculator). Note, this calculator does not have input boxes for correction factors.
Instructions For The Online Basic Correction Factor Budget Calculator
Note, these instructions are for the online version of the Basic Correction Factor Budget Calculator. The other versions provided for download, come with their own instructions. However, all of the devices operate in roughly similar ways, and they all (including the online version) display calculated results in red.
The Basic Correction Factor Budget Calculator is designed for planning and carrying out a budget. It calculates total income, total expenses, the balance, and a number of other calculations. However, what makes this budget calculator unusual is it calculates correction factors that show how precisely you planned and carried out your budget. The instructions are outlined in sequence below:
1) To use this budget calculator, you start by planning a budget in advance, for a specific time period. For example, your planned budget period can be for one month, such as from March 1 to March 31.
2) Then, you enter in the light blue sections of the calculator, your estimated income (the money you expect to put into the budget,) and your estimated expenses, for the budget period. The headings on the blue columns are labeled Total Predicted Income, and Total Predicted Expenses, and the calculated results will appear in the blue boxes, on top of the columns.
3) Keep in mind that all of the above should be completed before you actually start your budget.
4) When you are ready to start your budget, you must enter a start date and an end date for your budget, in the two boxes with red borders on top of the Budget Calculator.
5) When you start your budget you enter your actual income, and actual expenses in the light-yellow columns. This can be done on a daily basis, or whenever you have new expenses or income to enter into the calculator.
6) This budget calculator will calculate the actual total income, actual expenses, and balance, and it will displayed the results in the yellow boxes. This calculator will also calculate correction factors, as you enter income and expenditures. (The final results of the correction factors after the budget period has expired, is important. It will tell you how well you planned and carried out your budget.)
7) The correction factors are based on comparisons of the estimates you entered for income and expenses in the blue sections, with the actual income and actual expenses you entered in the yellow sections.
8) A correction factor of 1 means you carried out your budget exactly as you planned. Correction factors that are greater than 1 mean you underestimated, and less than 1 means you overestimated. Underestimating income may not be problematic. However, underestimating expenses or overestimating income might result in a shortage of funds.
9) If you are not sure that you can plan and estimate your budgets with a reasonable degree of precision, or if you have repeatedly estimated your budget poorly, you can remedy your problem, by doing one or both of the following.
10) Enter the word miscellaneous expenses, in the blue section, and allocate enough money to act as a safety margin, for underestimated expenses. Some people will have better results, if they enter several categories of miscellaneous expenses, such as miscellaneous entertainment, miscellaneous repair bills, miscellaneous medical bills, etc.
11) The Basic Correction Factor Budget Calculator has INPUT BOXES for correction factors, to deal with inadequate budget planning, or poor estimates of income and expenses. This is especially useful for people that repeatedly underestimate or overestimate, by roughly the same amount. For example let us assume that this budget calculator has calculated correction factors for your past budgets of 0.75, for your income, and 1.5, for your expenses. This means your estimates are not accurate, but if you enter these correction factors into the correction factor input boxes for your future budgets the estimates will be corrected to the degree indicated by the correction factors.
12) The correction factor input boxes are light green, and they contain a default correction factor of 1. When the correction factor is changed to a value less than or greater than 1, the estimated totals and related balance will change, in the blue boxes. However, the calculations for the actual income and expenditures, in the yellow sections are not affected by the numbers in the correction factor input boxes.
13) In general, most people, organizations and governments have a tendency to underestimate their expenses. There is also somewhat of a tendency to overestimate revenue. This is a form of financial over optimism. To correct for this over optimism enter a correction factor of at least 1.25 in the correction factor input box for expenses. If your income is from a variable source, such as business profits, you should probably enter a correction factor of 0.9 or less, in the correction factor input box, for income.
14) If you see a zero (0) or negative sign (-), it means the budget has expired, based on the date that was entered into the calculator.
15) Note: If you see the words: Missing-Data, in one of the green display boxes for correction factors, it means you did not enter numbers in the blue column for income or the blue column for expenses.
My Name is David Alderoty, and I Designed and Built This Website and the Budget Calculators.
I can provide the services mentioned above, based on permanent or temporary employment, or in terms of an individual service. My resume is online at: www.David100.com/R, and a list of my websites is at www.David100.com.
If you need
my services, or have any questions or comments, You can
call me at (212) 581-3740. You can
e-mail me RunDavid@Verizon.net. You can also send your message in a
website communication form, by left clicking on the blue words: WEB FORM. My address is
If you are a great distance from my locality, or are in a foreign country, this is not important. I can provide the services mentioned above worldwide, because the calculation devices, web forms and websites I make can be delivered through the Internet to any locality.