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Percentage Increase Between Two Amounts

Percentage Increase Formula:

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

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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 to track growth, inflation, price changes, and performance improvements.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

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

Where:

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

3. Importance of Percentage Increase Calculation

Details: Percentage increase is fundamental in finance, economics, business, and statistics for analyzing growth rates, price changes, investment returns, and performance metrics.

4. Using the Calculator

Tips: Enter both new and old amounts as positive numbers. The old amount must be greater than zero (division by zero is undefined).

5. Frequently Asked Questions (FAQ)

Q1: What if the percentage is negative?
A: A negative result indicates a percentage decrease rather than increase.

Q2: How is this different from percentage points?
A: Percentage increase is relative to the original value, while percentage points measure absolute difference between two percentages.

Q3: What's considered a good percentage increase?
A: This depends entirely on context - in investments, 7-10% annual return is good; in sales, targets vary by industry.

Q4: Can I use this for percentage decrease?
A: Yes, the result will be negative if the new amount is smaller than the old amount.

Q5: How do I interpret a 100% increase?
A: A 100% increase means the value has doubled (become twice as large as the original).

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