The percentage difference between two numbers helps to quantify the relative difference between them. Unlike percentage change, which focuses on the change from an initial value to a final value (see our percentage change calculator for more info), percentage difference treats both numbers equally. It's useful in scenarios where neither number is inherently a "starting" or "ending" point, but rather two values you simply wish to compare.
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Calculate Percentage Difference Now! →The Percentage Difference Formula Explained
The percentage difference between two numbers formula is expressed as:
Percentage Difference = (|Value A - Value B| / ((Value A + Value B) / 2)) * 100
Where:
- |Value A - Value B| represents the absolute value of the difference between the two numbers.
- (Value A + Value B) / 2 represents the average of the two numbers.
The absolute value ensures the result is always positive, reflecting a difference rather than a direction of change.
When to Use Percentage Difference
Percentage difference is helpful in situations such as comparing:
- Two prices to understand relative cost variations.
- Market shares of competing products.
- Experimental results where there's no designated control.
Remember, percentage difference is about relative comparison, not directional change. If you are interested in the directional difference, refer to our percentage increase and percentage decrease article.
Step-by-Step Calculation
- Find the Absolute Difference: Subtract one value from the other and take the absolute value.
- Calculate the Average: Add the two values and divide by 2.
- Divide: Divide the absolute difference by the average.
- Convert to Percentage: Multiply the result by 100.
Example Calculation
Let's say you want to find the percentage difference between 125 and 150:
- |125 - 150| = 25
- (125 + 150) / 2 = 137.5
- 25 / 137.5 = 0.1818
- 0.1818 * 100 = 18.18%
Therefore, the percentage difference between 125 and 150 is approximately 18.18%.
Percentage Difference vs. Percentage Change
It's important to distinguish percentage difference from percentage change. Percentage difference calculates the relative difference between two values without indicating direction. Percentage change, on the other hand, calculates the change from an initial value to a final value, indicating either an increase or a decrease (see our percentage change calculator for more info).
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