How to calculate percentage change
Percentage change measures how much a value changed, in percent, relative to the original value. The formula is: change (%) = (final value − initial value) ÷ |initial value| × 100.
Example
A product that cost $50 and now costs $65: change = (65−50)/50 × 100 = 30% — a 30% increase. If the same product dropped to $40: change = (40−50)/50 × 100 = −20% — a 20% decrease.
Percentage change vs. percentage points
Do not confuse the two: if an interest rate rises from 5% to 8%, that is a 3 percentage point increase, but a 60% percentage change relative to the original value ((8−5)/5 × 100).
Where it is used
Widely used to analyze price adjustments, sales growth, financial indicator changes, population growth and investment returns.
Frequently asked questions
What is the percentage change formula?
(Final value − Initial value) ÷ initial value (absolute) × 100.
What does a negative change mean?
It means the final value is lower than the initial one — a decrease, not an increase.
Is percentage change the same as percentage points?
No — percentage points is the direct difference between two percentages; percentage change is that difference relative to the initial value.
Why can't the initial value be zero?
Because division by zero has no defined mathematical result, so the percentage change cannot be calculated in that case.