Percent Growth Formula:
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Percent growth measures the relative change between an initial value and a final value over time. It's commonly used in finance, economics, business metrics, and scientific measurements to quantify change.
The calculator uses the percent growth formula:
Where:
Explanation: The formula calculates the difference between end and start values, divides by the start value to get relative change, then converts to percentage by multiplying by 100.
Details: Percent growth is fundamental for analyzing trends, comparing performance across different scales, making investment decisions, and evaluating project success.
Tips: Enter both start and end values in the same units. The start value must be greater than zero. Positive results indicate growth, negative results indicate decline.
Q1: What's the difference between percent change and percent growth?
A: They use the same formula. "Growth" typically implies positive change, while "change" can be positive or negative.
Q2: How do I interpret negative growth?
A: Negative growth indicates a decrease from the starting value to the ending value.
Q3: What if my start value is zero?
A: The calculation is undefined (division by zero). Consider using absolute difference instead.
Q4: How is this different from percentage points?
A: Percentage points measure absolute difference between percentages, while percent growth measures relative change from a base value.
Q5: Can I use this for compound growth over multiple periods?
A: This calculates simple growth. For compound growth over time, use the CAGR (Compound Annual Growth Rate) formula.