How to calculate percentage change between two numbers
Calculating percentage change between two numbers is a useful skill, whether you need it for school, work, or personal use. The percentage change is used to express the degree of difference between two numbers and is often used in finance, business, and statistics. In this article, we will discuss the steps to calculate percentage change between two numbers.
1. Identify the initial and final values:
First and foremost, you need to identify the initial (old) value and the final (new) value. The initial value refers to the starting point or the base from which you are measuring the change. The final value is the updated number that represents the change.
2. Calculate the difference:
To calculate the difference between the initial and final values, subtract the initial value from the final value.
Difference = Final Value – Initial Value
3. Divide the difference by the absolute value of the initial value:
The next step is to divide the difference by the absolute value of the initial value. This will give you a decimal number that represents the proportional change from one number to another.
Proportional Change = Difference / |Initial Value|
4. Convert proportion to percentage:
To convert a proportion to a percentage, multiply it by 100. This will give you a percentage figure that represents how much a number has increased or decreased.
Percentage Change = Proportional Change × 100%
5. Interpret your result:
Now that you have your percentage change, you can interpret it as an increase or decrease using positive or negative signs.
– A positive percentage indicates an increase.
– A negative percentage indicates a decrease.
For example, let’s say we want to find out how much a $500 investment has grown in a year when its current worth becomes $625.
Initial Value = 500
Final Value = 625
Difference = 625 – 500 = 125
Proportional Change = 125 / 500 = 0.25
Percentage Change = 0.25 × 100% = 25%
In this example, the percentage change is positive (+25%), indicating that the investment has grown by 25%.
By following these simple steps, you can learn how to calculate percentage change between any two numbers quickly and efficiently. This skill will come in handy when analyzing data, tracking growth or declines, and making decisions based on changes in values.