1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used to analyze cost changes, price increases, revenue growth, and other financial metrics.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{New Cost} \) — The current or increased cost
• \( \text{Old Cost} \) — The original or previous cost

Explanation: The formula calculates the difference between new and old costs, divides by the original cost to get the relative change, then multiplies by 100 to convert to a percentage.

3. Importance of Percentage Increase Calculation

Details: Calculating percentage increases helps in budgeting, financial planning, pricing strategies, and evaluating the impact of inflation or cost changes. It provides a standardized way to compare changes across different scales.

4. Using the Calculator

Tips: Enter both new and old costs in the same currency. The old cost must be greater than zero. The calculator will show the percentage increase (positive) or decrease (negative).

5. Frequently Asked Questions (FAQ)

Q1: What if my result is negative?
A: A negative result indicates a percentage decrease rather than an increase.

Q2: How is this different from percentage points?
A: Percentage increase is relative to the original value, while percentage points are absolute differences between percentages.

Q3: Can I use this for non-financial calculations?
A: Yes, the formula works for any measurable quantity (weight, distance, etc.) where you want to calculate relative change.

Q4: Why multiply by 100?
A: Multiplying by 100 converts the decimal result to a percentage, which is easier to understand and compare.

Q5: What if my old cost was zero?
A: The calculation is undefined when old cost is zero, as you cannot divide by zero. The calculator requires old cost > 0.