How to Calculate Percent Change
Percent change (often called percentage change or rate of change) measures the degree of change between an initial starting value and a final ending value as a percentage. It is widely used in economics, finance, business KPIs, science, and everyday math.
Percent Change Formula
Percent Change = [(Final Value - Initial Value) / |Initial Value|] × 100%
If the result is positive, it represents a percentage increase. If the result is negative, it represents a percentage decrease.
Step-by-Step Calculation Steps
- Find the net change: Subtract the initial starting value from the final ending value (
Final - Initial). - Divide by the starting point: Take the net change and divide it by the absolute value of the original number (
Net Change / Initial). - Convert to a percentage: Multiply the decimal result by 100 and append the
%symbol.
Real-World Example: Business Revenue Growth
Suppose an online store earned $50,000 in revenue last quarter (Initial Value) and $75,000 this quarter (Final Value). What is the percent change?
- Net Change: $75,000 - $50,000 = +$25,000
- Ratio: 25,000 / 50,000 = 0.50
- Percentage: 0.50 × 100 = +50% Increase
Frequently Asked Questions
Mathematically, you cannot divide by zero. Moving from 0 to 50 is an infinite percentage change because any percentage of zero is still zero. In financial reports, this is typically designated as "N/A" or "New".
Percent change has a fixed chronological starting point and can be positive or negative. In contrast, percentage difference compares two values symmetrically by dividing by their average, producing an absolute magnitude without direction.