1. What is Percentage Increase?

Percentage increase measures how much a value has grown relative to its original amount, expressed as a percentage. It's commonly used in finance to track stock performance, investment growth, and price changes.

2. How Does the Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{Number1} \) — Initial value (original price or amount)
• \( \text{Number2} \) — Final value (current price or amount)

Explanation: The formula calculates the difference between two values, divides by the original value, and converts to a percentage.

3. Importance of Percentage Increase Calculation

Details: Calculating percentage increases helps investors evaluate performance, compare different investments, and make informed financial decisions. It's essential for tracking stock portfolio growth.

4. Using the Calculator

Tips: Enter both values in dollars (or your local currency). The initial value should be the older or purchase price, while the final value should be the current or selling price.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage increase and absolute increase?
A: Absolute increase is the simple difference (Number2 - Number1), while percentage increase shows the change relative to the original value.

Q2: Can percentage increase be negative?
A: Yes, if Number2 is less than Number1, the result will be negative, indicating a percentage decrease.

Q3: 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.

Q4: Why use percentage instead of absolute numbers?
A: Percentages allow comparison between investments of different sizes by showing relative performance rather than absolute dollar amounts.

Q5: How do I annualize percentage increases?
A: For multi-year periods, use the compound annual growth rate (CAGR) formula: [(Ending Value/Beginning Value)^(1/Years)] - 1.