How to calculate percentage change on excel
Excel is an indispensable tool not only for businesses and professionals but also for individuals who need assistance with managing their day-to-day finances. One crucial calculation that you might need often is the percentage change, which determines the relative increase or decrease in a given figure over time. Here’s a step-by-step guide on how to calculate percentage change in Excel.
Step 1: Input Your Data
Organize your data within your Excel worksheet, typically placing the initial values in one column and the final values in an adjacent column.
Example:
A1: Initial Value
B1: Final Value
A2: 100
B2: 150
Step 2: Enter the Percentage Change Formula
In an empty cell, input the following formula to calculate the percentage change between the initial value (A2) and final value (B2).
Percentage Change Formula:
=(Final Value – Initial Value) / Initial Value
In our example, you would enter this formula in C2:
=(B2-A2)/A2
Step 3: Format as a Percentage
After entering the formula, press ‘Enter’ to get the result. It will appear as a decimal number. To convert it to a percentage, click on the cell displaying the result (C2), and access the ‘Format Cells’ menu by right-clicking and selecting ‘Format Cells.’
In the Format Cells window, select ‘Percentage’ under Category and choose your desired decimal places. Click ‘OK’ to apply the changes. The calculated percentage change will now appear as a percentage instead of a decimal number.
Step 4 (Optional): Fill Down for Multiple Rows
If you have multiple rows of data and want to calculate percentage changes for all of them, simply click on the bottom-right corner of the cell containing your first formula (C2) and drag it down to fill the cells below with the same formula, automatically adjusting the references according to the respective rows.
Conclusion:
Excel makes calculating percentage changes easier than ever. With a simple formula, you can analyze how specific values have evolved over time and make informed decisions based on these insights. Whether you’re tracking your investments, comparing sales numbers, or assessing your budget, Excel is there to support your data analysis needs.