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Calculate Percentage Increase In Price

Percentage Increase Formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

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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 track price changes, growth rates, and performance improvements.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

\[ \text{Percentage Increase} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100 \]

Where:

Explanation: The formula calculates the difference between the new and old values, divides by the original value to get the relative change, then converts to a percentage by multiplying by 100.

3. Importance of Percentage Increase Calculation

Details: Percentage increase is essential in economics, finance, business analysis, and everyday life to understand growth rates, inflation, price changes, and performance improvements.

4. Using the Calculator

Tips: Enter both new and old prices in the same currency. The old price must be greater than zero. Negative results indicate a percentage decrease rather than increase.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase is the simple difference (New - Old), while percentage increase shows the change relative to the original value.

Q2: How do I interpret a negative percentage increase?
A: A negative result means the value has decreased rather than increased (percentage decrease).

Q3: What if the old price is zero?
A: The calculation is undefined (division by zero). You cannot calculate percentage increase from zero.

Q4: How is this different from percentage points?
A: Percentage points measure absolute difference between percentages, while percentage increase measures relative change from an original value.

Q5: Can I use this for non-price calculations?
A: Yes, the formula works for any quantitative values where you want to measure relative growth (population, test scores, etc.).

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