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Percentage Increase And Decrease Calculator Formula

Percentage Change Formula:

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

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1. What is Percentage Change?

Percentage change measures the degree of change over time, expressed as a percentage. It's used to compare how much a value has increased or decreased relative to its original value.

2. How Does the Calculator Work?

The calculator uses the percentage change formula:

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

Where:

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

3. Importance of Percentage Change Calculation

Details: Percentage change is widely used in finance, economics, statistics, and business to analyze growth rates, price changes, performance metrics, and more. It provides a standardized way to compare changes across different scales.

4. Using the Calculator

Tips: Enter the old (original) value and the new (current) value. The calculator will show the percentage increase or decrease. Note that the old value cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage change mean?
A: A negative percentage change indicates a decrease from the old value to the new value.

Q2: Why can't the old value be zero?
A: Division by zero is mathematically undefined, so percentage change cannot be calculated when the old value is zero.

Q3: How is percentage change different from percentage difference?
A: Percentage change compares a new value to an old value, while percentage difference compares any two values without reference to which is older.

Q4: Can percentage change be more than 100%?
A: Yes, if the new value is more than double the old value, the percentage increase will exceed 100%.

Q5: How do I interpret a percentage decrease?
A: A percentage decrease shows how much a value has reduced relative to its original amount. For example, a 20% decrease means the new value is 80% of the original.

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