How to calculate improvement percentage
Improvement percentage is a helpful metric to track progress and quantify the level of enhancement in a specific area, be it personal or professional. It allows you to visualize the results of your efforts, set achievable goals, and make data-driven decisions. In this article, we will discuss how to calculate improvement percentage with simple steps and examples.
Step 1: Identify the Initial and Final Values
To begin, gather relevant data about the initial state (also known as the base value) and the final state (also known as the new value) of the metric you want to improve. For instance, if you are looking to gauge improvement in test scores, gather information on your first test score and most recent test score.
Step 2: Calculate the Absolute Change
Subtract the initial value from the final value to find the absolute change:
Absolute Change = Final Value – Initial Value
For example, suppose your initial test score was 75% and your final test score was 90%. Here’s how you would find the absolute change:
Absolute Change = 90 – 75
Absolute Change = 15
The absolute change in your test score is 15 percentage points.
Step 3: Find Relative Change (Percentage Difference)
To calculate relative change or percentage difference, divide the absolute change by the initial value:
Relative Change = (Absolute Change / Initial Value) x 100%
Using our example:
Relative Change = (15 / 75) × 100%
Relative Change = (0.2) × 100%
Relative Change = 20%
So your improvement percentage is 20%.
Examples for Calculating Improvement Percentage:
Let’s look at two more examples.
Example 1:
Initial Sales Revenue: $10,000
Final Sales Revenue: $12,000
Absolute Change = $12,000 – $10,000
Absolute Change = $2,000
Relative Change = ($2,000 / $10,000) × 100%
Relative Change = (0.2) × 100%
Relative Change = 20%
Improvement Percentage in Sales Revenue = 20%
Example 2:
Initial Website Traffic: 1,000 visitors per month
Final Website Traffic: 1,500 visitors per month
Absolute Change = 1,500 – 1,000
Absolute Change = 500
Relative Change = (500 / 1,000) × 100%
Relative Change = (0.5) × 100%
Relative Change = 50%
Improvement Percentage in Website Traffic = 50%
In conclusion, tracking improvement percentage is an effective way to measure progress and set realistic improvement goals. By following the simple steps outlined in this article, you can easily calculate the improvement percentage for a variety of areas in your personal and professional life.