Percentage Change Formula:
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Percentage change measures the relative difference between an old value and a new value, expressed as a percentage. It's commonly used in finance, economics, and data analysis to track growth, decline, or variation over time.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the relative difference between two values by finding the absolute change, dividing by the original value, and converting to a percentage.
Details: Percentage change is essential for analyzing trends, comparing data over time, measuring performance improvements or declines, and making informed decisions based on relative changes rather than absolute numbers.
Tips: Enter both old and new values. The old value cannot be zero (division by zero is undefined). Positive results indicate increase, negative results indicate 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: Can percentage change be more than 100%?
A: Yes, if the new value is more than double the old value, the percentage change will exceed 100%.
Q3: What if the old value is zero?
A: Percentage change is undefined when the old value is zero, as it involves division by zero.
Q4: How is percentage change different from percentage difference?
A: Percentage change compares two values over time (from old to new), while percentage difference compares two distinct values at the same point in time.
Q5: When is percentage change most useful?
A: It's most useful when comparing relative changes across different scales or magnitudes, such as comparing growth rates of different companies or investments.