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 widely used in finance, economics, statistics, and everyday life to track growth, decline, or variation over time.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the difference between new and old values relative to the original value, then converts it to a percentage by multiplying by 100.
Details: Percentage change is essential for analyzing trends, comparing performance, making investment decisions, tracking growth rates, and understanding market fluctuations across various fields including business, finance, and scientific research.
Tips: Enter the original (old) value and the new value in any consistent units. The old value must be greater than zero. Positive results indicate increase, negative results indicate decrease.
Q1: What does a negative percentage change mean?
A: A negative percentage change indicates a decrease or reduction from the original value to the new value.
Q2: Can percentage change be more than 100%?
A: Yes, percentage change can exceed 100% when the new value is more than double the original value.
Q3: What if the old value is zero?
A: The calculation is undefined when the old value is zero, as division by zero is mathematically impossible.
Q4: How is percentage change different from percentage points?
A: Percentage change measures relative change from an original value, while percentage points measure absolute difference between two percentages.
Q5: When is percentage change most useful?
A: It's most useful for comparing changes across different scales and time periods, especially when analyzing growth rates, price changes, and performance metrics.