Writing · Free lesson
Over or under budget: explain the difference
The budget was $1,000 and the actual cost was $1,200. Saying “We spent $200” would report the wrong total.
Professor Scott MendozaThe short answer
For a cost budget, over budget means the cost is higher than planned; under budget means it is lower. In “$200 over budget,” $200 is the difference, not the total cost.
Name the total and the difference separately.
Subtract $1,000 from $1,200: the difference is $200. The cost was $200 over budget. If the actual cost were $900, it would be $100 under budget. These sentences compare costs; they do not explain why the difference occurred.
Same budget, different results
The cost was $1,200: $200 over budget.
The cost was $900: $100 under budget.
The amount before over or under is the gap between actual cost and budget.
Check before reporting
Identify both figures
The budget was $500. The actual cost was $560.
State the gap
The cost was $60 over budget.
Try it now
Choose the accurate cost sentence
Read all answers and explanations
Budget: $800. Actual cost: $950. Which sentence is accurate?
The cost was $150 over budget.950 minus 800 is 150. The actual cost is higher, so it is over budget;950 is the total, not the gap.
Budget: $800. Actual cost: $720. Which sentence is accurate?
The cost was $80 under budget.The actual cost is 80 lower than the budget. Under gives the direction and 80 gives the difference.
A report says the cost was $40 over a $300 budget. What was the actual cost?
The actual cost was $340.Add the 40 difference to the 300 budget. The actual cost is 340.
Put it into practice
Correct a confusing summary
The cost budget was $2,000. The actual cost was $1,850. No reason for the difference has been confirmed. Choose an accurate summary.
The cost was $1,850 under budget because the supplier gave us a discount.
See a model answer
The actual cost was $1,850, which was $150 under budget. The reason is not yet confirmed.
The arithmetic establishes the difference, not its cause. Other clear sentences are valid if they preserve those facts.
A little more clarity
Common questions
A few useful details before you move on.
What does on budget mean?
It means the cost matches the planned amount. Within budget usually means the cost does not exceed the limit, so it may be lower.
The budget was $400 and the cost was $400: on budget.
Does “$50 over budget” mean the total cost was $50?
No. It means the cost exceeded the planned amount by $50. If the budget was $200, the total cost was $250. Name the total and the difference separately when either could be misunderstood.
Take it into your day
Over and under show direction; the amount beside them gives the difference.
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