1. Measure overall budget variance magnitude
| Category | Month | Budgeted | Actual | Variance |
| Groceries | Jan | 500 | 520 | -20 |
| Groceries | Feb | 500 | 480 | 20 |
| Utilities | Jan | 200 | 210 | -10 |
| Utilities | Feb | 200 | 190 | 10 |
| Entertainment | Jan | 300 | 280 | 20 |
| Entertainment | Feb | 300 | 310 | -10 |
=SUMSQ(E2:E7)Result: 1500
SUMSQ squares each variance (-20² + 20² + (-10)² + 10² + 20² + (-10)² = 400 + 400 + 100 + 100 + 400 + 100 = 1500). Squaring converts negatives to positives, giving a single measure of total deviation—how far actual spending strayed from budget across all categories.