Percentage Change Formulae
The percentage change formula helps measure how much a value increases or decreases relative to its original amount. It provides a standardized way to compare changes across different numbers.
Standard Percentage Change Formula: This formula calculates the relative difference between the original value and the new value, then converts the result into a percentage.
Formula for Percentage Increase: Use this formula when the new value is greater than the original value. The result will be a positive percentage that represents growth.
Formula for Percentage Decrease: Use this formula when the new value is smaller than the original value. The result shows how much the value has declined from its starting point.
Understanding Formula Components: Original Value: The starting amount before any change occurs.
New Value: The updated amount after the increase or decrease.
Difference: The amount gained or lost between the two values.
100: Converts the decimal result into a percentage.
How to Calculate Percentage Change
Percentage change calculations follow a simple four-step process.
Step 1 – Find the Difference Between Values
Subtract the original value from the new value to determine the amount of change.
Step 2 – Divide by the Original Value
Divide the difference by the original value to find the relative change.
Step 3 – Multiply by 100
Multiply the result by 100 to convert the decimal into a percentage.
Step 4 – Interpret the Percentage Result
A positive percentage indicates growth, while a negative percentage indicates a decline.
Example: Price Change Calculation: The product price increased by 25%.