Percentage Difference Calculator Excel

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Fact-checked and reviewed by David Chen, CFA
Financial Analyst & Spreadsheet Specialist

Calculating the percentage difference between two values is a fundamental skill in data analysis and financial reporting. Use this professional tool to find the variance between two numbers, or solve for missing values in your Excel datasets.

Percentage Difference Calculator

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Percentage Difference —

Percentage Difference Calculator Excel Formula

% Difference = |V1 – V2| / [ (V1 + V2) / 2 ] × 100
Formula Source: Wikipedia – Relative Change and Difference | Investopedia – Percentage Change

Variables:

  • Initial Value (V1): The first reference value in your dataset.
  • Final Value (V2): The second value being compared against the first.
  • Percentage Difference: The absolute difference between two numbers divided by their average.

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What is Percentage Difference?

Percentage difference is used when you want to compare two values that are of the same type (e.g., comparing the population of two different cities). Unlike “Percentage Change,” which implies a chronological order (old vs. new), Percentage Difference treats both values as equally significant.

In Excel, this calculation is vital for variance analysis. To calculate the percentage difference between Cell A1 and B1, you would use the formula: =ABS(A1-B1)/((A1+B1)/2) and then format the result as a percentage.

How to Calculate Percentage Difference (Example)

  1. Identify your two values. Let’s say Value 1 is 120 and Value 2 is 150.
  2. Find the absolute difference: $|120 – 150| = 30$.
  3. Calculate the average of the two values: $(120 + 150) / 2 = 135$.
  4. Divide the difference by the average: $30 / 135 \approx 0.2222$.
  5. Multiply by 100 to get the percentage: 22.22%.

Frequently Asked Questions (FAQ)

How do I do percentage difference in Excel? Use the formula =(New_Value - Old_Value) / Old_Value for change, or =ABS(A1-B1)/AVERAGE(A1,B1) for pure difference between two independent values.
Why is my percentage difference negative? Strictly speaking, percentage difference uses absolute values and is always positive. If you are seeing a negative, you are likely calculating “Percentage Decrease.”
Can I calculate difference with a zero value? No. If the average of the two values is zero, the calculation is mathematically undefined (division by zero).
Is percentage difference the same as percentage error? They are similar, but percentage error compares an observed value to a theoretical “correct” value, whereas difference compares two experimental or real-world values.