Use the Percentage Change Calculator to quickly determine the percentage difference between two numbers, solve for the initial value, or solve for the final value. This tool is often used when analyzing sales growth, stock performance, or budget variations, similar to how it’s handled in a complex spreadsheet like Excel.
Percentage Change Calculator
Percentage Change Formula
Percentage Change (\%) = \frac{(Final Value - Initial Value)}{Initial Value} \times 100
Formula Sources: Investopedia, Corporate Finance Institute
Variables
- Initial Value: The original number, price, or quantity you start with. This is the denominator in the formula.
- Final Value: The number after the change has occurred.
- Percentage Change: The relative change expressed as a percentage. A positive result indicates an increase; a negative result indicates a decrease.
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Explore other financial and mathematical calculation tools:
- Compound Annual Growth Rate (CAGR) Calculator
- Simple Interest Rate Calculator
- Gross Profit Margin Calculator
- Weighted Average Calculator
What is Percentage Change?
Percentage change is a simple mathematical concept used across finance, business, and science to indicate the degree of change over time. It represents the relative difference between an old value (Initial Value) and a new value (Final Value), expressed as a fraction of 100. It is one of the most fundamental metrics for measuring growth, decay, or deviation.
In financial analysis, a positive percentage change signifies growth (e.g., revenue increase), while a negative percentage change indicates a decline (e.g., stock price drop). The calculation normalizes the change, making it easy to compare changes across different scales. For instance, a $10 increase on a $100 item (10%) is easily comparable to a $100,000 increase on a $1,000,000 asset (also 10%).
How to Calculate Percentage Change (Example)
Suppose a company’s sales increased from $1,200,000 in Q1 to $1,500,000 in Q2.
- Identify Values: Initial Value (IV) = 1,200,000; Final Value (FV) = 1,500,000.
- Find the Absolute Change: Subtract the Initial Value from the Final Value: $1,500,000 – $1,200,000 = $300,000.
- Divide by the Initial Value: Divide the absolute change by the Initial Value: $300,000 / $1,200,000 = 0.25.
- Convert to Percentage: Multiply the result by 100 to get the percentage: $0.25 \times 100 = 25\%$.
- Conclusion: The company experienced a 25% increase in sales.
Frequently Asked Questions (FAQ)
What is the difference between percentage change and percentage point change?
Percentage change is the relative change between two numbers. Percentage point change is the absolute difference between two percentages. For example, if a rate moves from 50% to 60%, the percentage change is 20%, but the percentage point change is 10 points.
Can I use this formula to calculate depreciation?
Yes. If the Final Value is lower than the Initial Value, the resulting percentage change will be negative, accurately reflecting the rate of depreciation.
Why is the Initial Value always the denominator?
The Initial Value serves as the baseline or reference point. The percentage change is always calculated *relative* to the value you started with, which makes the Initial Value (the “old” value) the divisor.
How does this relate to percentage calculations in Excel?
The formula used in this calculator (=(B2-A2)/A2) is the exact formula commonly used in Excel spreadsheets to calculate growth or percentage change between two cells (A2 and B2). This calculator automates that multi-step process.