Understanding how to calculate the percentage of growth is a valuable skill in various aspects of life, from tracking investment performance to analyzing business trends. It allows you to quantify change and make informed decisions.
Simplify Growth Calculations Instantly
Quickly determine growth percentages and make informed decisions with our user-friendly calculator!
Calculate Growth Percentage Now! →The percentage of growth represents the extent to which a quantity has increased over a specific period, expressed as a percentage of the initial value. Whether you're tracking your portfolio's gains, a company's revenue increase, or the population growth in your city, knowing how to calculate this metric provides valuable insights.
The Formula for Percentage of Growth
The basic formula for calculating the percentage of growth is straightforward:
Percentage of Growth = [(New Value - Original Value) / Original Value] * 100
Where:
- New Value: The value at the end of the period.
- Original Value: The value at the beginning of the period.
Step-by-Step Calculation
- Determine the Original and New Values: Identify the starting and ending values for the period you're analyzing.
- Calculate the Difference: Subtract the original value from the new value to find the amount of increase.
Increase = New Value - Original Value
- Divide by the Original Value: Divide the increase by the original value. This gives you the growth as a decimal.
- Multiply by 100: Multiply the decimal by 100 to express the growth as a percentage.
Example Calculation
Let's say a company's revenue was $100,000 last year, and this year it's $120,000. Let's calculate the percentage of growth using the steps below.
- Original Value: $100,000
- New Value: $120,000
- Calculate the Difference: New Value - Original Value = $120,000 - $100,000 = $20,000
- Apply the Formula: Percentage of Growth = ($20,000 / $100,000) * 100
- Result: Percentage of Growth = 0.2 * 100 = 20%
Therefore, the company's revenue grew by 20%.
Real-World Applications
- Business: Tracking sales growth, revenue increase, or profit margin improvement.
- Finance: Measuring the performance of investments, stock prices, or portfolio returns.
- Economics: Analyzing GDP growth, inflation rates, or unemployment trends.
- Personal Finance: Monitoring the increase in savings, the growth of debt, or changes in expenses.
Quickly Calculate Percentage of Growth with Our Tool
While the formula is simple, calculations can become tedious, especially when dealing with numerous data points. Our percentage calculator can instantly calculate the percentage of growth, as well as other helpful calculations like percentage increase, percentage decrease and percentage change between two numbers. Just enter the original and new values, and the calculator will handle the rest!
Our tool can also help you find the percentage of a number or calculate a percentage of a percentage!