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Percent Increase Formula

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 quantity has grown relative to its original value, expressed as a percentage. It's commonly used in finance, economics, statistics, and general data analysis to track growth rates.

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 the new and old values, divides by the old value to get the relative change, then multiplies by 100 to convert to a percentage.

3. Importance of Percentage Increase Calculation

Details: Percentage increase is crucial for understanding growth rates in business (revenue, profits), investments (stock prices, portfolio growth), population studies, and scientific measurements.

4. Using the Calculator

Tips: Enter both new and old values. The old value cannot be zero (division by zero is undefined). Values can be positive or negative, representing increases or decreases.

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 indicates a percentage decrease rather than an increase.

Q3: What if my old value was zero?
A: Percentage change is undefined when the old value is zero, as you cannot divide by zero.

Q4: Can percentage increase be more than 100%?
A: Yes, this indicates the value has more than doubled (e.g., 200% increase means the new value is 3 times the old value).

Q5: 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.

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