Calculator guideHow the percentage change calculator works
Percentage change measures how much a value has grown or shrunk relative to where it started:
Change (%) = (new value − original value) ÷ original value × 100
A positive answer is an increase and a negative answer is a decrease.
Worked examples
- Rent goes from $480 to $520 a week: (520 − 480) ÷ 480 × 100 = +8.33%
- A share falls from $92 to $80: (80 − 92) ÷ 92 × 100 = −13.04%
- Sales rise from 80 units to 92: (92 − 80) ÷ 80 × 100 = +15%
Examples 2 and 3 use the same two numbers but give different answers, because the starting point (the base) is different.
Why gains and losses aren't symmetrical
If something falls 50%, it must then rise 100% to get back to where it started. A $100 investment that drops 20% to $80 needs a 25% gain to return to $100. That asymmetry is why large losses are so hard to recover from.
Percentage change vs percentage points
If an unemployment rate moves from 4% to 5%: - the change is 1 percentage point - the percentage change is 25%
Both are correct, but they mean different things. Say which one you mean.
Annual growth over several years
For growth across several years, the compound annual growth rate is often more useful:
CAGR = (end ÷ start)^(1 ÷ years) − 1
A house bought for $600,000 and sold for $840,000 six years later grew 40% in total, which is about 5.8% a year.
Common mistakes
- Dividing by the new value instead of the original.
- Averaging percentage changes over several years instead of compounding them.
- Calculating a change from zero, which is undefined.
How do I calculate a percentage increase?
Subtract the old value from the new value, divide by the old value and multiply by 100.
How do I calculate a percentage decrease?
Use the same formula. The result will be negative. From 50 to 40 is −20%.
If a price drops 20% then rises 20%, is it back where it started?
No. $100 drops to $80, then rises 20% to $96, which is still 4% below the start.
Written by Sam Alex, civil engineer. About the author