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Calculate Percentage Increase On Investment

Percentage Increase Formula:

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

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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 evaluate investment performance, price changes, and growth metrics.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

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

Where:

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

3. Importance of Percentage Increase Calculation

Details: Calculating percentage increase helps investors evaluate performance, businesses analyze growth, and individuals track financial changes over time.

4. Using the Calculator

Tips: Enter both values in the same currency. The old value must be greater than zero. Negative results indicate percentage decrease rather than increase.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase shows the numerical difference, while percentage increase shows the relative change compared to the original value.

Q2: How do I interpret negative percentage increase?
A: A negative result indicates a percentage decrease rather than increase.

Q3: Can percentage increase be more than 100%?
A: Yes, this means the value has more than doubled from its original amount.

Q4: Why is percentage increase useful in investments?
A: It standardizes performance measurement regardless of the initial investment amount, allowing comparison between different investments.

Q5: How does this differ from compound annual growth rate (CAGR)?
A: Percentage increase measures total growth, while CAGR calculates the average annual growth rate over multiple periods.

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