Planned versus Actual Velocity is a forecasting tool based on the on the observed and actual performance. The team can tell the customer whether they will finish the backlog of user stories by the planned number of iterations or not.
Planned vs. actual velocity is a predictive tool based on observations and actual performance. It enables the team to tell the customer if they will complete the backlog of user stories before the planned number of iterations.
The planned velocity is the team’s expectation of the story points to be delivered in each iteration. Actual velocity refers to actual sum of the story points that they delivered in each iteration.