1. What is the Percentage Growth Formula?

The Percentage Growth Formula calculates the relative increase between an original value and a new value, expressed as a percentage. It's commonly used in business to measure sales growth, revenue growth, or any other metric improvement.

2. How Does the Calculator Work?

The calculator uses the percentage growth formula:

Where:

• \( Increase \) — The amount of growth (new value minus original value)
• \( Original \) — The starting value before growth

Explanation: The formula shows what percentage the increase represents compared to the original value.

3. Importance of Growth Calculation

Details: Calculating percentage growth is essential for business analysis, financial planning, and performance measurement. It allows for comparison of growth across different scales and time periods.

4. Using the Calculator

Tips: Enter the original value and increase value in any currency (ensure consistent units). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between percentage growth and absolute growth?
A: Absolute growth shows the numerical difference, while percentage growth shows the relative change, making comparisons more meaningful.

Q2: Can percentage growth be negative?
A: Yes, if the new value is less than the original, it indicates a decline rather than growth.

Q3: How is this different from percentage change?
A: Percentage growth specifically measures increase, while percentage change can be either increase or decrease.

Q4: What time period should I use for growth calculations?
A: Common periods are year-over-year (YoY), quarter-over-quarter (QoQ), or month-over-month (MoM) depending on your analysis needs.

Q5: How do I interpret a 100% growth?
A: 100% growth means the value has doubled (increased by the same amount as the original value).