diff --git a/packages/grafana-data/src/transformations/transformDataFrame.ts b/packages/grafana-data/src/transformations/transformDataFrame.ts
index 0616919bdae..7f46fee8e50 100644
--- a/packages/grafana-data/src/transformations/transformDataFrame.ts
+++ b/packages/grafana-data/src/transformations/transformDataFrame.ts
@@ -17,7 +17,9 @@ const getOperator =
     const options = { ...defaultOptions, ...config.options };
 
     return source.pipe(
-      mergeMap((before) => of(before).pipe(info.transformation.operator(options), postProcessTransform(before, info)))
+      mergeMap((before) =>
+        of(before).pipe(info.transformation.operator(options, config.replace), postProcessTransform(before, info))
+      )
     );
   };
 
diff --git a/packages/grafana-data/src/transformations/transformers/calculateField.test.ts b/packages/grafana-data/src/transformations/transformers/calculateField.test.ts
index d119af9bd19..5f0a6be0cd5 100644
--- a/packages/grafana-data/src/transformations/transformers/calculateField.test.ts
+++ b/packages/grafana-data/src/transformations/transformers/calculateField.test.ts
@@ -7,6 +7,7 @@ import { transformDataFrame } from '../transformDataFrame';
 import { CalculateFieldMode, calculateFieldTransformer, ReduceOptions } from './calculateField';
 import { DataFrameView } from '../../dataframe';
 import { BinaryOperationID } from '../../utils';
+import { ScopedVars } from '../../types';
 
 const seriesA = toDataFrame({
   fields: [
@@ -219,4 +220,63 @@ describe('calculateField transformer w/ timeseries', () => {
       `);
     });
   });
+
+  it('uses template variable substituion', async () => {
+    const cfg = {
+      id: DataTransformerID.calculateField,
+      options: {
+        alias: '$var1',
+        mode: CalculateFieldMode.BinaryOperation,
+        binary: {
+          left: 'A',
+          operator: BinaryOperationID.Add,
+          right: '$var2',
+        },
+        replaceFields: true,
+      },
+      replace: (target: string | undefined, scopedVars?: ScopedVars, format?: string | Function): string => {
+        if (!target) {
+          return '';
+        }
+        const variables: ScopedVars = {
+          var1: {
+            value: 'Test',
+            text: 'Test',
+          },
+          var2: {
+            value: 5,
+            text: '5',
+          },
+          __interval: {
+            value: 10000,
+            text: '10000',
+          },
+        };
+        for (const key of Object.keys(variables)) {
+          if (target === `$${key}`) {
+            return variables[key].value + '';
+          }
+        }
+        return target;
+      },
+    };
+
+    await expect(transformDataFrame([cfg], [seriesA])).toEmitValuesWith((received) => {
+      const data = received[0];
+      const filtered = data[0];
+      const rows = new DataFrameView(filtered).toArray();
+      expect(rows).toMatchInlineSnapshot(`
+        Array [
+          Object {
+            "Test": 6,
+            "TheTime": 1000,
+          },
+          Object {
+            "Test": 105,
+            "TheTime": 2000,
+          },
+        ]
+      `);
+    });
+  });
 });
diff --git a/packages/grafana-data/src/transformations/transformers/calculateField.ts b/packages/grafana-data/src/transformations/transformers/calculateField.ts
index 56758ae1454..e49920f803a 100644
--- a/packages/grafana-data/src/transformations/transformers/calculateField.ts
+++ b/packages/grafana-data/src/transformations/transformers/calculateField.ts
@@ -71,10 +71,12 @@ export const calculateFieldTransformer: DataTransformerInfo<CalculateFieldTransf
       reducer: ReducerID.sum,
     },
   },
-  operator: (options) => (outerSource) => {
+  operator: (options, replace) => (outerSource) => {
     const operator =
       options && options.timeSeries !== false ? ensureColumnsTransformer.operator(null) : noopTransformer.operator({});
 
+    options.alias = replace ? replace(options.alias) : options.alias;
+
     return outerSource.pipe(
       operator,
       map((data) => {
@@ -84,7 +86,14 @@ export const calculateFieldTransformer: DataTransformerInfo<CalculateFieldTransf
         if (mode === CalculateFieldMode.ReduceRow) {
           creator = getReduceRowCreator(defaults(options.reduce, defaultReduceOptions), data);
         } else if (mode === CalculateFieldMode.BinaryOperation) {
-          creator = getBinaryCreator(defaults(options.binary, defaultBinaryOptions), data);
+          const binaryOptions = replace
+            ? {
+                ...options.binary,
+                left: replace ? replace(options.binary?.left) : options.binary?.left,
+                right: replace ? replace(options.binary?.right) : options.binary?.right,
+              }
+            : options.binary;
+          creator = getBinaryCreator(defaults(binaryOptions, defaultBinaryOptions), data);
         }
 
         // Nothing configured
diff --git a/packages/grafana-data/src/types/transformations.ts b/packages/grafana-data/src/types/transformations.ts
index b7a018093d7..8e2ae2552f4 100644
--- a/packages/grafana-data/src/types/transformations.ts
+++ b/packages/grafana-data/src/types/transformations.ts
@@ -2,6 +2,7 @@ import { MonoTypeOperatorFunction } from 'rxjs';
 
 import { DataFrame, Field } from './dataFrame';
 import { RegistryItemWithOptions } from '../utils/Registry';
+import { ScopedVars } from './ScopedVars';
 
 /**
  * Function that transform data frames (AKA transformer)
@@ -13,7 +14,10 @@ export interface DataTransformerInfo<TOptions = any> extends RegistryItemWithOpt
    * Function that configures transformation and returns a transformer
    * @param options
    */
-  operator: (options: TOptions) => MonoTypeOperatorFunction<DataFrame[]>;
+  operator: (
+    options: TOptions,
+    replace?: (target?: string, scopedVars?: ScopedVars, format?: string | Function) => string
+  ) => MonoTypeOperatorFunction<DataFrame[]>;
 }
 
 /**
@@ -42,6 +46,10 @@ export interface DataTransformerConfig<TOptions = any> {
    * Options to be passed to the transformer
    */
   options: TOptions;
+  /**
+   * Function to apply template variable substitution to the DataTransformerConfig
+   */
+  replace?: (target?: string, scopedVars?: ScopedVars, format?: string | Function) => string;
 }
 
 export type FrameMatcher = (frame: DataFrame) => boolean;
diff --git a/public/app/features/query/state/PanelQueryRunner.ts b/public/app/features/query/state/PanelQueryRunner.ts
index 6d9376bc552..90336b3f23b 100644
--- a/public/app/features/query/state/PanelQueryRunner.ts
+++ b/public/app/features/query/state/PanelQueryRunner.ts
@@ -183,6 +183,13 @@ export class PanelQueryRunner {
             return of(data);
           }
 
+          const replace = (option: string): string => {
+            return getTemplateSrv().replace(option, data?.request?.scopedVars);
+          };
+          transformations.forEach((transform: any) => {
+            transform.replace = replace;
+          });
+
           return transformDataFrame(transformations, data.series).pipe(map((series) => ({ ...data, series })));
         })
       );