The percentage calculator above measures the difference between two numbers and expresses this difference as either an increase (a positive percentage) or a decrease (a negative percentage).
To calculate your correct percentage change, follow the simple steps outlined below:
The percentage change formula is used to determine the extent of change, either an increase or decrease, between two values, expressed as a percentage. The formula is:
Percentage Change = (New Value - Original Value / Original Value) x 100
To apply this percentage formula, first, subtract the original/ initial value (starting number) from the new/ final value (final number) to find the difference. Next, divide this difference by the original value. The result represents the change as a fraction of the original value. Finally, multiply this result by 100 to convert it from a fraction to percent. The final value will be the answer for percent change.
This equation for percent difference is widely used in various fields, such as business finance and economics to compare values over time or between different scenarios. For example, in expense management it can be used when calculating the percentage increase in employee expenses from one month to the next.
Using our percentage change calculator, if the result yields a positive percentage, it signifies an increase. Conversely, if the percentage is negative, it signifies a decrease.
Let's say a company's Marketing department had an annual spending of £150,000 last year. This year, the department's spending increased to £180,000. To calculate the percentage change in the department's annual spending, follow these steps:
In this example from our calculation of percentage changes, the Marketing department's annual spending increased by 20% compared to the previous year. This indicates that the department's expenses have grown, and the company may need to implement changes in their approach to spend management to align with budgetary goals.