Understanding Percentage Change

Percentage change is a simple mathematical concept that represents the degree of change over time. It is used in many fields, including finance, economics, and science, to show how much a value has increased or decreased relative to its initial value.

The Formula

The formula for percentage change is:

Percentage Change = ((New Value - Old Value) / Old Value) * 100

Example Calculation

Let's say the price of a stock increased from $50 (Old Value) to $60 (New Value).

• First, find the difference: $60 - $50 = $10
• Next, divide the difference by the Old Value: $10 / $50 = 0.2
• Finally, multiply by 100 to get the percentage: 0.2 * 100 = 20%

So, the stock price increased by 20%.

Interpreting the Results

• Positive Percentage Change: Indicates an increase in value. For example, +20% means the value increased by 20%.
• Negative Percentage Change: Indicates a decrease in value. For example, -10% means the value decreased by 10%.
• Zero Percentage Change: Means there was no change in value. The new value is the same as the old value.