Percentage Change Formula:
From: | To: |
Percentage change measures the degree of change over time, expressed as a percentage. It's commonly used to track price changes, growth rates, and performance metrics in finance, economics, and business.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the relative difference between two values as a percentage of the original value.
Details: Percentage change is crucial for understanding trends, comparing performance across different scales, and making informed decisions in business, investing, and economics.
Tips: Enter both old and new values in the same currency or unit. The old value must be greater than zero. Positive results indicate an increase, negative results indicate a decrease.
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 undefined in mathematics. The formula requires a non-zero old value to calculate percentage change.
Q3: How is this 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: What's considered a significant percentage change?
A: Significance depends on context. In stock markets, 1% might be significant, while for annual inflation, 5% might be the threshold.
Q5: How do I interpret a 100% increase?
A: A 100% increase means the new value is double the old value (100% of the original value added to itself).