Relative Change Formula:
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Relative change measures the difference between two values as a percentage of the original value. It shows how much a quantity has changed in relation to its initial amount.
The calculator uses the relative change formula:
Where:
Explanation: The formula calculates the difference between new and old values, divides by the old value to get the relative difference, then converts to percentage.
Details: Relative change is widely used in economics, finance, science, and business to compare changes across different scales. It provides a standardized way to express changes regardless of the original magnitude.
Tips: Enter both new and old values. The old value cannot be zero (division by zero is undefined). Results are shown as percentages with positive values indicating increase and negative values indicating decrease.
Q1: What's the difference between relative and absolute change?
A: Absolute change is simple subtraction (new - old), while relative change expresses this difference as a percentage of the old value.
Q2: When should I use relative change?
A: Use it when you want to compare changes across different scales or when the percentage change is more meaningful than the absolute difference.
Q3: Can relative change be more than 100%?
A: Yes, it can exceed 100% when the new value is more than double the old value. There's no upper limit.
Q4: What does negative relative change mean?
A: Negative values indicate a decrease from the old value to the new value.
Q5: Why can't the old value be zero?
A: Division by zero is mathematically undefined, making the calculation impossible when the old value is zero.