Calculating percentage increase or decrease is a useful way to track data points over time. If you have two numbers, their relationship can be described by the percentage change between them. The reason this is an important metric is because it is normalized. Percentage increases and decreases can be slightly confusing at first, but become much more simple once you understand how they are calculated. To calculate percentage change, we will use three operations. As usual with percentage problems, these operations will involve basic arithmetic. In this case, we want to calculate the percentage increase or decrease from 5891 to 3479. Here are the steps:
Step 1: Subtract 5891 from 3479
The first step is to find the difference between the new number (the second input, 3479) and the old number (the first input, 5891). We can do this by simply subtracting 5891 from 3479: 3479−5891=−2412
Step 2: Divide -2412 by 5891
The second step is to divide the result of step 1 by the original number. This is done to compare the difference to the original number. The equation for this is quite simply: −24125891=−2412÷5891=−0.40943812595485
Step 3: Multiply -0.40943812595485 by 100
The final step of this calculation is to multiply the result of step 2 by 100 to turn it into a percentage (%). This equation for this is simple: −0.40943812595485×100=−40.94
And there you have it! These three steps can be used to calculate the percentage increase or decrease of any two numbers. Give it a try with another set of numbers.
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