We report variability of the X-ray source, X-7, in NGC 6946, during a 60 ksec Chandra observation when the count rate decreased by a factor of ~1.5 in ~5000 secs. Spectral fitting of the high and low count rate segments of the light curve reveal that the simplest and most probable interpretation is that the X-ray spectra are due to disk black body emission with an absorbing hydrogen column density equal to the Galactic value of 2.1 X 10^{21} cm^{-2}. During the variation, the inner disk temperature decreased from ~0.29 to ~0.26 keV while the inner disk radius remained constant at ~6 X 10^8 cm. This translates into a luminosity variation from 3.8 to 2.8 X 10^{39} ergs cm^{-2} sec^{-1} and a black hole mass of ~400 solar masses. More complicated models like assuming intrinsic absorption and/or the addition of a power-law component imply a higher luminosity and a larger black hole mass. Even if the emission is beamed by a factor of ~5, the size of the emitting region would be > 2.7 X 10^8 cm implying a black hole mass > 180 solar masses. Thus, these spectral results provide strong evidence that the mass of the black hole in this source is definitely > 100 solar masses and more probably ~400 solar masses.
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