How to calculate percentage of change between two numbers
Calculating the percentage of change between two numbers can be a useful skill in various real-life situations, such as finance, economics, statistics, and more. It helps determine how much a value has increased or decreased relative to its original value. In this article, we will explore the process of calculating the percentage of change between two numbers step by step.
Step 1: Understand the Problem
The first step is to recognize the two numbers for which you want to calculate the percentage change. Typically, these are an initial value (A) and a final value (B). The percentage of change will represent the difference between A and B as a percentage of A.
Step 2: Calculate the Difference
To find the difference between A and B, subtract A from B:
Difference = B – A
Step 3: Divide the Difference by the Original Value
Now that you have calculated the difference, divide it by the original value (A):
Percentage difference = (Difference / A)
Step 4: Convert to Percentage
Finally, multiply the result by 100 to express it as a percentage:
Percentage of change = (Percentage difference) x 100
Step 5: Interpret the Results
If the result is positive, it indicates an increase or growth from A to B. If it is negative, it reflects a decrease or decline.
Example:
Let’s calculate the percentage change between an initial value of 50 (A) and a final value of 75 (B):
1. Difference = B – A = 75 – 50 = 25
2. Percentage difference = Difference / A = 25 / 50 = 0.5
3. Percentage of change = (Percentage difference) x 100 = 0.5 x 100 = 50%
In this example, there is a 50% increase between numbers A and B.
In conclusion, calculating the percentage of change between two numbers is a simple but invaluable skill. By understanding and applying these basic steps, you can quickly determine the proportion of growth or decline between values in various scenarios.