By what percent did the actual cost exceed the initial estimate?

Question

A library expansion begun in 2002 and was expected to costb$127 million . By 2006 library officials estimate the cost would be $25milliom over budget. By what percent did the actual cost exceed the initial estimate?

Answer 1

To find the percentage of the cost overrun, determine the amount of the overrun and divide by the original estimate and multiply by 100 to convert the decimal to percent.

 

In this case,

 

Overrun = $25 million

Original Estimate = $127 million

 

% overrun = (25/127)(100) = 19.7%