Percentage change is a useful way to measure how much a value has increased or decreased compared with its original value. It is commonly used in finance, business, economics, website analytics, sales reports, and everyday calculations.
Percentage Change Formula
Use:
Percentage Change = ((New Value − Original Value) ÷ Original Value) × 100
For example, suppose monthly sales increased from $5,000 to $6,000.
The difference is:
6,000 − 5,000 = 1,000
Then:
(1,000 ÷ 5,000) × 100 = 20%
Sales increased by 20%.
If the result is negative, the value has decreased.
For quick calculations, you can use the Percentage Calculator instead of calculating the percentage manually.
Why Percentage Change Is Useful
Absolute differences do not always provide enough context. An increase of $1,000 can be significant for a small business but relatively minor for a company generating millions.
Percentage change makes values easier to compare relative to their original size.