1. What is Annual Increase?

Annual Increase measures the absolute change in value between two points in time (typically one year apart). It shows how much a value has grown or decreased in monetary terms.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• New Value — Current or most recent value
• Old Value — Previous value (typically from one year prior)

Explanation: Positive results indicate growth, negative results indicate decline, and zero indicates no change.

3. Importance of Annual Increase Calculation

Details: Calculating annual increase helps track financial growth, salary changes, investment performance, business revenue changes, and economic indicators over time.

4. Using the Calculator

Tips: Enter both values in the same currency. The calculator works with any currency as long as both values use the same one.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from percentage increase?
A: Annual increase shows absolute change in monetary terms, while percentage increase shows relative change.

Q2: Can this be used for decreases?
A: Yes, negative results indicate the amount of decrease from old to new value.

Q3: What time period does this cover?
A: While typically annual, this calculation works for any time period as long as both values represent the same time span.

Q4: Should I use gross or net values?
A: Depends on your purpose - use gross for revenue, net for profit calculations.

Q5: How does inflation affect this?
A: For real (inflation-adjusted) comparisons, use inflation-adjusted values.