Formula for Percentage Change

The formula to calculate the percentage change is:

Percentage Change=(New Value−Original Value/Original Value)×100

Explanation of the Formula

1. Difference Calculation:
   • New Value – Original Value: This part of the formula finds the difference between the new value and the original value. If the new value is greater than the original value, the result is positive, indicating an increase. If the new value is less than the original value, the result is negative, indicating a decrease.
2. Divide by Original Value:
   • (New Value – Original Value) / Original Value: This step normalizes the difference based on the original value. This normalization helps to understand the change relative to the starting point (original value), which makes comparisons meaningful regardless of the absolute values involved.
3. Convert to Percentage:
   • … × 100: Finally, multiplying by 100 converts the decimal result into a percentage. This step is crucial because it transforms the ratio into a percentage, which is easier to read and more commonly used in everyday contexts.

Example of Using the Formula

Suppose the original value is 50 and the new value is 75. Applying the formula:

1. Calculate the Difference: Difference=75−50=25
2. Normalize the Difference: Normalized Difference=25/50=0.5
3. Convert to Percentage: Percentage Change=0.5×100=50%

This result means there has been a 50% increase from the original value to the new value.

When a user enters the original and new values, the JavaScript function calculates the percentage change using this formula and updates the result box to display “Percentage Change: 50%” (based on the example given).

This approach to calculating percentage change is useful across various fields, including finance, statistics, and general analytics, where understanding the relative change is more meaningful than just the absolute change.