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Calculation Of Percentage Change

Percentage Change Formula:

\[ \text{Percentage Change} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100\% \]

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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 track growth, decline, or changes over time in various fields such as finance, economics, and statistics.

2. How Does the Calculator Work?

The calculator uses the percentage change formula:

\[ \text{Percentage Change} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100\% \]

Where:

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, comparing data over time, making investment decisions, and evaluating performance metrics in business and research.

4. Using the Calculator

Tips: Enter both old and new values. The old value must not be zero. The result shows the percentage increase (positive) or decrease (negative).

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage change indicate?
A: A negative percentage change indicates a decrease from the old value to the new value.

Q2: Can percentage change be more than 100%?
A: Yes, if the new value is more than double the old value, the percentage change will exceed 100%.

Q3: What if the old value is zero?
A: Percentage change is undefined when the old value is zero, as division by zero is not possible.

Q4: How is percentage change different from percentage point change?
A: Percentage change measures relative difference, while percentage point change measures absolute difference between two percentages.

Q5: Where is percentage change commonly used?
A: It's widely used in finance (stock performance), economics (inflation rates), business (sales growth), and scientific research (data analysis).

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