Percentage Change Formula:
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Percentage change measures the relative difference between an old and new stock price, expressed as a percentage. It's a fundamental metric in finance to track performance over time periods.
The calculator uses the percentage change formula:
Where:
Explanation: The formula calculates the relative difference between two prices, showing how much the stock has increased or decreased as a percentage of the original price.
Details: Percentage change is crucial for investors to evaluate stock performance, compare different investments, and make informed trading decisions based on price movements.
Tips: Enter both old and new stock prices in US dollars. Values must be positive numbers. The calculator will show the percentage increase (positive) or decrease (negative).
Q1: What does a negative percentage change indicate?
A: A negative percentage change indicates the stock price has decreased from the old price to the new price.
Q2: How is this different from percentage points?
A: Percentage change measures relative difference, while percentage points measure absolute difference between percentages.
Q3: Can I use this for other financial instruments?
A: Yes, this formula works for any asset with price data - ETFs, mutual funds, cryptocurrencies, etc.
Q4: What time periods can I compare?
A: You can compare any two points in time - daily, weekly, monthly, or yearly price changes.
Q5: How accurate is this calculation for investment decisions?
A: While percentage change is a fundamental metric, investment decisions should consider multiple factors including volume, market conditions, and fundamentals.