Percentage Change Formula:
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Definition: Percentage change measures the degree of change over time, expressed as a percentage of the original value.
Purpose: It's commonly used in finance, economics, statistics, and business to compare changes in values over time.
The calculator uses the formula:
Where:
Explanation: The difference between new and old values is divided by the old value, then multiplied by 100 to convert to a percentage.
Positive Result: Indicates an increase from the old value to the new value.
Negative Result: Indicates a decrease from the old value to the new value.
Tips: Enter both old and new values. The old value cannot be zero (division by zero is undefined).
Q1: What's the difference between percentage change and percentage difference?
A: Percentage change compares a new value to an old value, while percentage difference compares any two values without directionality.
Q2: How do I interpret a negative percentage change?
A: A negative result means the new value is less than the old value (a decrease).
Q3: Why can't the old value be zero?
A: Division by zero is mathematically undefined, so percentage change cannot be calculated when the original value is zero.
Q4: What are common applications of percentage change?
A: Stock price changes, sales growth, population changes, inflation rates, and performance metrics.
Q5: How do I calculate percentage increase vs decrease?
A: The same formula works for both - the sign of the result indicates increase (positive) or decrease (negative).