1. What is Rate of Change?

The Rate of Change (ROC) measures the percentage change between an old value and a new value. It's commonly used in finance, economics, physics, and other fields to analyze growth or decline rates.

2. How Does the Calculator Work?

The calculator uses the Rate of Change formula:

Where:

• \( New \) — The new or current value
• \( Old \) — The old or previous value

Explanation: The formula calculates the relative difference between two values as a percentage of the original value.

3. Importance of Rate of Change

Details: ROC is crucial for understanding growth trends, comparing performance over time, and making data-driven decisions in business and science.

4. Using the Calculator

Tips: Enter both old and new values. The old value cannot be zero (division by zero is undefined). Results show percentage change with positive values indicating increase and negative values indicating decrease.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between rate of change and percentage difference?
A: They are essentially the same calculation, both measuring relative change between two values.

Q2: How do I interpret negative ROC values?
A: Negative values indicate a decrease from the old value to the new value.

Q3: What if my old value is zero?
A: The calculation is undefined when old value is zero, as you cannot divide by zero.

Q4: Can ROC exceed 100%?
A: Yes, ROC can be any value from -100% to infinity, depending on the values.

Q5: How is ROC used in finance?
A: In finance, ROC often measures price changes over time, growth rates, or performance metrics.