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