How To Calculate Percent Change

Percent change is a way to measure how much something has changed over a period of time. To calculate the percent change, you need to know two numbers: the amount at the beginning of the period and the amount at the end. The percent change measures the amount of relative change between two values.

To calculate percent change, use the following formula:

(End Value – Start Value) / Start Value x 100 = % Change

Let’s look at an example. Suppose a business had revenues of $1,000 during a certain month last year. This year, that same business had revenues of $1,200 during the same month. To calculate the percent change of the business’s revenue, use the following formula:

(1,200 – 1,000) / 1,000 x 100 = 20%

This means that the business’s revenue increased by 20% from last year.

You can also reverse the formula to figure out the end value, given the start value and the percent change. To do this, use the following formula:

(Start Value x (1+ % Change/100)) = End Value

Let’s look at an example. Suppose a business had revenues of $1,000 during a certain month last year and that it wanted to increase those revenues by 20%. To calculate the new value, use the following formula:

(1,000 x (1 + 20/100)) = $1,200

This means that the business would need revenues of $1,200 to achieve its 20% increase in revenue.

Percent change is a simple and useful concept used to measure changes in value over time. Hopefully, this guide has helped you understand the concept and how to calculate percent change.