Rolling Forecast Revision Rate
Frequency with which the rolling forecast is materially revised, indicating forecast reliability
What is Rolling Forecast Revision Rate?
Rolling forecast revision rate is the number of material forecast revisions made compared with the number of forecast cycles in a period. It shows how often the forecast has to be significantly changed.
Frequent large revisions suggest that the forecast is unstable or that underlying assumptions are weak.
How this KPI is measured
- Function
- Finance
- Sub-function
- Budgeting & Forecasting
- Industry
- All Industries
- Type
- Lagging
- Impact
- Financial control
- Unit
- #
- Measurement frequency
- Monthly / Quarterly
- Formula
- Number of material forecast revisions in period / Number of forecast cycles in period
How to calculate it
Divide the number of material forecast revisions in the period by the number of forecast cycles in the period.
For example, if there were 3 material revisions across 4 forecast cycles, the rate is 0.75.
Define material in advance, such as a change beyond a set percentage, and look at the reasons for revisions.
Where it is used
Assessing forecast stability
See how often plans change.
Improving assumptions
Find recurring causes.
Managing expectations
Prepare leaders for change.
How to improve it
Tips and common mistakes
- Revisions are not always bad. Rolling forecasts are meant to update.
- Look at the size of changes as well as the count.
- Track the direction of change.
More Finance kpi library
Build better plans, faster
Join the waitlist for early access to curated insights, flexible templates, and rapid iteration across strategy, planning, and project management.