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How to Calculate Percent Change

So one of the common questions I get is – how do you calculate the percentage change from one number to another?

For example, let’s say you have the following sales numbers from 2022 and the sales numbers from 2023.

Your goal is to calculate the percent change between the two numbers.

How do you do it?

Method 1

The first way to calculate the change in percentage between the two numbers is to use the following formula.

(New Value - Old Value) / Old Value
(C2 - B2) / B2

This formula will give you the percent change between the two numbers, either positive or negative, depending if the numbers increased or decreased.

Method 2

The other way to calculate the percent change between the two numbers is to use the following formula.

New Value / Old Value - 1
C2 / B2 - 1

This formula will also give you the percent change between the two numbers, either positive or negative, depending if the numbers increased or decreased.

Both Formulas Are the Same

Believe it or not, these two formulas are actually the same, even though they might look different.

Take a look at the formula from method one. You can re-write this formula to look like this.

How amazing is that?

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