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How To Calculate Percentage Growth

Percentage Growth Formula:

\[ \text{Percentage Growth} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100\% \]

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1. What Is Percentage Growth?

Percentage growth measures the relative change between an old value and a new value, expressed as a percentage of the old value. It's commonly used in finance, economics, business metrics, and scientific measurements.

2. How The Calculation Works

The percentage growth formula:

\[ \text{Percentage Growth} = \left( \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \right) \times 100\% \]

Where:

Explanation: The formula calculates the difference between values, divides by the original to get relative change, then converts to percentage by multiplying by 100.

3. Importance Of Growth Measurement

Details: Percentage growth provides standardized comparison across different scales, allowing meaningful analysis of changes whether dealing with small or large numbers.

4. Using The Calculator

Tips: Enter both new and old values. The old value cannot be zero (division by zero is undefined). Negative values are acceptable for calculating growth rates.

5. Frequently Asked Questions (FAQ)

Q1: What does negative percentage growth mean?
A: Negative growth indicates a decrease from the old value to the new value.

Q2: How is percentage growth different from percentage points?
A: Percentage growth measures relative change, while percentage points measure absolute difference between percentages.

Q3: What's the difference between growth rate and percentage growth?
A: They're often used interchangeably, but growth rate typically refers to change over time (e.g., annual growth rate).

Q4: How do you calculate compound annual growth rate (CAGR)?
A: CAGR requires time period and uses formula: [(Ending Value/Beginning Value)^(1/Periods) - 1] × 100.

Q5: What are common applications of percentage growth?
A: Used in financial analysis (revenue growth), population studies, investment returns, business metrics, and scientific measurements.

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