1. What is Percentage Change?

Percentage change measures the relative difference between an old value and a new value, expressed as a percentage. It's commonly used in finance to track stock price movements, investment returns, and market performance over time.

2. How Does the Calculator Work?

The calculator uses the percentage change formula:

Where:

• \( \text{New Price} \) — Current stock price ($)
• \( \text{Old Price} \) — Previous stock price ($)

Explanation: A positive result indicates a price increase, while a negative result indicates a price decrease. The percentage shows the relative change compared to the original price.

3. Importance of Percentage Change Calculation

Details: Percentage change is essential for investors to evaluate investment performance, compare stock returns, assess market trends, and make informed trading decisions based on price movements.

4. Using the Calculator

Tips: Enter the old price and new price in dollars. Both values must be positive numbers (old price must be greater than zero).

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage change mean?
A: A negative percentage change indicates a decrease in price from the old value to the new value.

Q2: How is this different from percentage points?
A: Percentage change measures relative change from an original value, while percentage points measure absolute difference between two percentages.

Q3: Can I use this for other financial calculations?
A: Yes, the same formula applies to calculate changes in revenue, profit, expenses, or any other financial metric.

Q4: What if the old price is zero?
A: The calculation is undefined when the old price is zero, as division by zero is not possible. This typically doesn't occur with stock prices.

Q5: How often should I calculate percentage changes?
A: It depends on your investment strategy - daily for active traders, weekly/monthly for long-term investors, or whenever significant price movements occur.