Percentage Change Formula:
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Percentage change measures the degree of change over time. It compares an old value to a new value, expressing the difference as a percentage of the old value. This calculation is widely used in finance, statistics, and general data analysis.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the difference between two numbers as a percentage of the original number. A positive result indicates an increase, while a negative result indicates a decrease.
Details: Percentage change is essential for comparing changes over time, analyzing growth rates, understanding market trends, and making data-driven decisions in business and finance.
Tips: Enter the initial value (Number1) and the final value (Number2). The calculator will show the percentage change between these values. Note that Number1 cannot be zero (division by zero is undefined).
Q1: What's the difference between percentage change and percentage difference?
A: Percentage change compares two numbers relative to the original value, while percentage difference compares relative to the average of two values.
Q2: How do I interpret a negative percentage change?
A: A negative percentage change indicates a decrease from the original value to the new value.
Q3: Why can't the initial value be zero?
A: Division by zero is mathematically undefined, making percentage change calculations impossible when the original value is zero.
Q4: Is percentage change the same as percentage points?
A: No, percentage points refer to the absolute difference between two percentages, while percentage change is relative to the original value.
Q5: How is percentage change used in finance?
A: It's commonly used to calculate investment returns, stock price changes, revenue growth, and other financial metrics.