How to calculate percent improvement
Improvement is an essential aspect of growth, be it in business, sports, or personal development. Calculating the percent improvement can provide valuable insights into progress and help set new goals or adjust current strategies. In this article, we will break down how to calculate percent improvement step by step.
Percent improvement is the difference between the new value and the original value, expressed as a percentage increase or decrease. It is typically used to measure progress or change over time.
Follow these steps to calculate percent improvement:
Step 1: Identify the original value (Old Value)
The first step to calculating percent improvement is identifying the original value you want to compare with a new value. This might be a business’s revenue from last quarter, an athlete’s time from a previous race, or any other initial data point or starting condition.
Step 2: Identify the new value (New Value)
Next, determine the new value you wish to compare with the original value. This could be recent revenue for a business, a more recent race time for an athlete, or any updated data point or current condition.
Step 3: Calculate the difference
Subtract the old value (original value) from the new value to find the difference.
Difference = New Value – Old Value
Step 4: Divide the difference by the original value
After finding the difference, divide this number by the old value (original value) to find what portion of the original value has changed.
Percent Change = Difference / Old Value
Step 5: Multiply by 100
Finally, multiply this quotient by 100 to convert it into a percentage. The result will show you the percentage increase (positive number) or decrease (negative number) between your old and new values.
Percent Improvement = Percent Change × 100
Example:
Let’s say we want to calculate percent improvement for test scores:
Old Value = 75 (original test score)
New Value = 90 (new test score)
Difference = New Value – Old Value
Difference = 90 – 75 = 15
Percent Change = Difference / Old Value
Percent Change = 15 / 75 = 0.2
Percent Improvement = Percent Change × 100
Percent Improvement = 0.2 × 100 = 20%
In this example, the percent improvement in test scores is 20%.
Calculating percent improvement allows you to identify progress, establish goals, and develop strategies for growth. By understanding how to calculate percent improvement, you can make data-driven decisions and better understand the effects of changes made over time.