How is percentage change calculated?
Percentage change is calculated by subtracting the original value from the new value, dividing the result by the original value, and multiplying it by 100. The formula is:
Percentage Change = (New Value - Original Value) / Original Value * 100
To calculate the percentage change, you need two values: the initial value (or starting value) and the final value. The formula to calculate percentage change is as follows:
Percentage change = ((final value - initial value) / initial value) * 100
Here, you subtract the initial value from the final value, divide it by the initial value, and then multiply the result by 100 to get the percentage change.
Percentage change is calculated by comparing the difference between two values and expressing it as a percentage of the original value. The formula for calculating percentage change is as follows:
Percentage Change = (New Value - Original Value) / Original Value * 100
To explain how to calculate percentage change using this formula, let's consider an example:
Let's say you bought a stock for $50, and its current price is $70. To find the percentage change, follow these steps:
1. Subtract the original value from the new value: $70 - $50 = $20.
2. Divide the difference by the original value: $20 / $50 = 0.4.
3. Multiply the result by 100 to get the percentage: 0.4 * 100 = 40%.
Therefore, the percentage change in this case would be 40%. This means that the stock has appreciated by 40% since you bought it.