Percentage Change Formula:
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Percentage change measures the degree of change over time. It's used to compare the difference between an old value and a new value, expressed as a percentage of the old value. This calculation is widely used in finance, economics, statistics, and many other fields.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the difference between the new and old values, divides by the old value to get a relative change, then multiplies by 100 to convert to a percentage.
Details: Percentage change is essential for understanding growth rates, price changes, performance improvements, and many other comparative measurements. It provides a standardized way to compare changes across different scales.
Tips: Enter both the new value and old value. The old value cannot be zero (division by zero is undefined). Positive results indicate an increase, negative results indicate a decrease.
Q1: What does a positive/negative percentage mean?
A: Positive percentage means increase, negative means decrease. Zero means no change.
Q2: Why can't the old value be zero?
A: Division by zero is mathematically undefined. You cannot calculate percentage change from zero.
Q3: How is this different from percentage difference?
A: Percentage change compares a new value to an old value. Percentage difference compares two values without directionality.
Q4: What if I have multiple changes over time?
A: For compound percentage changes, you would need to calculate each period separately or use a compound growth formula.
Q5: Can I use this for percentage decrease?
A: Yes, the same formula works for both increases and decreases. A decrease will simply show as a negative percentage.