1. What is Percentage Change?

Percentage change measures the relative difference between an old value and a new value, expressed as a percentage. It is commonly used to analyze year-over-year changes in financial metrics, growth rates, and performance indicators.

2. How Does the Calculator Work?

The calculator uses the percentage change formula:

Where:

• \( New \) — The new or current value
• \( Old \) — The original or previous value

Explanation: The formula calculates the relative difference between two values by dividing the absolute change by the original value and converting it to a percentage.

3. Importance of Percentage Change Calculation

Details: Percentage change is essential for analyzing trends, measuring growth or decline, comparing performance across different time periods, and making informed business decisions based on financial data.

4. Using the Calculator

Tips: Enter the new value and old value in dollars. The old value must be greater than zero to avoid division by zero errors. The result shows the percentage increase (positive) or decrease (negative).

5. Frequently Asked Questions (FAQ)

Q1: What does a positive percentage change indicate?
A: A positive percentage change indicates growth or increase from the old value to the new value.

Q2: What does a negative percentage change mean?
A: A negative percentage change indicates a decrease or decline from the old value to the new value.

Q3: Can percentage change be more than 100%?
A: Yes, percentage change can exceed 100% when the new value is more than double the old value.

Q4: What are common applications of percentage change?
A: Common applications include financial analysis, sales growth measurement, stock performance, inflation rates, and population growth studies.

Q5: 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.