Percentage Change Formula:
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The price percentage change measures how much a price has increased or decreased relative to its original value. It's a fundamental calculation used in finance, economics, and business to analyze price movements.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the difference between new and old price as a percentage of the old price. A positive result indicates an increase, while a negative result indicates a decrease.
Details: Calculating price changes helps in financial analysis, investment decisions, inflation measurement, sales performance evaluation, and pricing strategy development.
Tips: Enter both old and new prices in the same currency. The old price must be greater than zero. The calculator will show the percentage change and indicate whether it's an increase or decrease.
Q1: What does a negative percentage mean?
A: A negative percentage indicates a price decrease from the old price to the new price.
Q2: How do I interpret a 50% increase?
A: A 50% increase means the new price is 150% of the old price (old price + 50% of old price).
Q3: What if the old price is zero?
A: The calculation is undefined when old price is zero, as division by zero is not possible.
Q4: Can I use this for percentage decrease calculations?
A: Yes, the same formula works for both increases and decreases. The calculator will show the direction of change.
Q5: How is this different from percentage points?
A: Percentage change measures relative change from an original value, while percentage points measure absolute difference between two percentages.