What is Forecast Accuracy?
How close forecasts are to actual results.
How to calculate it
Calculate Forecast Accuracy as: 1 − |Actual − Forecast| / Actual × 100. Pull the inputs from your connected data and track the trend over time in your dashboard.
Examples
Example 1
Forecast $480k, actual $500k -> 96% accuracy.
Example 2
A $480k forecast against $500k actual -> 96% accuracy, strong enough that leadership can plan hiring and spend against the next forecast.
Why it matters
Forecast accuracy measures how close forecasts are to actual results and underpins the credibility of planning and the quality of decisions built on it. Accurate forecasts let the business commit resources confidently, while poor ones erode trust in the planning process. Cherry-picking favorable periods gives a misleadingly rosy view.
Benchmark context
90%+ is strong for stable demand; volatile or early-stage businesses naturally forecast less accurately, so benchmark against your own variability.
Common pitfalls
Cherry-picking favorable periods.
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