Percentage Change Formula:
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Definition: This calculator determines the percentage change between a stock's current price and its previous price.
Purpose: It helps investors and traders quickly assess price movements and performance of stocks or other financial instruments.
The calculator uses the formula:
Where:
Explanation: The difference between current and previous price is divided by the previous price to get the relative change, then multiplied by 100 to convert to percentage.
Details: Percentage change standardizes price movements, allowing comparison between stocks of different price levels and tracking performance over time.
Tips: Enter the current and previous stock prices in any currency. Previous price must be > 0. The result shows the percentage increase (positive) or decrease (negative).
Q1: What does a negative percentage mean?
A: A negative result indicates the stock price has decreased from its previous value.
Q2: Can I use this for other financial instruments?
A: Yes, this works for any asset with price data - commodities, indices, cryptocurrencies, etc.
Q3: What time periods can I compare?
A: You can compare any two prices - daily change, weekly, monthly, or between any two specific dates.
Q4: How do I interpret large percentage changes?
A: Large percentages on low-priced stocks may represent small absolute changes, while small percentages on high-priced stocks may represent significant value changes.
Q5: Why is percentage change better than absolute change?
A: Percentage change allows comparison between stocks of different prices, while absolute change doesn't account for the base price level.