How to Find Percentage of Growth Between Two Numbers
In the world of finance, business, and economics, understanding the percentage of growth between two numbers is crucial for making informed decisions. Whether you are analyzing sales figures, investment returns, or population growth, knowing how to calculate the percentage increase or decrease can provide valuable insights. In this article, we will guide you through the steps to find the percentage of growth between two numbers.
Understanding the Formula
To calculate the percentage of growth between two numbers, you can use the following formula:
Percentage of Growth = [(New Value – Old Value) / Old Value] 100
This formula is based on the concept of finding the difference between the new value and the old value, dividing that difference by the old value, and then multiplying the result by 100 to convert it into a percentage.
Step-by-Step Guide
1. Identify the old value and the new value: The old value represents the initial amount, while the new value represents the amount after the growth or decrease.
2. Calculate the difference: Subtract the old value from the new value to find the difference.
3. Divide the difference by the old value: Divide the difference obtained in step 2 by the old value.
4. Multiply the result by 100: Multiply the result obtained in step 3 by 100 to convert it into a percentage.
5. Interpret the result: The resulting percentage represents the growth or decrease between the two numbers.
Example
Let’s say you want to calculate the percentage of growth in sales between two years. In 2020, your sales were $100,000, and in 2021, your sales increased to $150,000.
1. Old Value: $100,000
2. New Value: $150,000
3. Difference: $150,000 – $100,000 = $50,000
4. Difference divided by Old Value: $50,000 / $100,000 = 0.5
5. Multiply by 100: 0.5 100 = 50%
The percentage of growth in sales between 2020 and 2021 is 50%.
Conclusion
Finding the percentage of growth between two numbers is a straightforward process that can provide valuable insights into various aspects of business and finance. By following the steps outlined in this article, you can easily calculate the percentage increase or decrease and make informed decisions based on the data. Remember to identify the old and new values, calculate the difference, divide by the old value, multiply by 100, and interpret the result. Happy calculating!
