1. What is a Percentage Change Calculator?

Definition: This calculator determines the percentage increase or decrease between two values, commonly used in financial and statistical analysis.

Purpose: It helps individuals and businesses understand growth rates, price changes, and performance metrics in percentage terms.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• New — The current or recent value
• Old — The original or previous value

Explanation: The difference between new and old values is divided by the old value, then multiplied by 100 to convert to percentage.

3. Importance of Percentage Change Calculation

Details: Percentage change provides a standardized way to compare changes across different scales and magnitudes, essential for financial analysis and decision-making.

4. Using the Calculator

Tips: Enter the old value and new value in pounds (£). The old value must be greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage 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 mathematically undefined, making percentage change calculation impossible.

Q3: How is this different from percentage difference?
A: Percentage change compares two values over time, while percentage difference compares two simultaneous values.

Q4: Can I use this for non-financial calculations?
A: Yes, it works for any measurable quantity (weight, distance, etc.) where you want to track change over time.

Q5: What's considered a significant percentage change?
A: This depends on context - in finance, ±5% might be significant for stocks, while ±1% could be significant for inflation rates.