1. What Is Price Change Percentage?

Price change percentage measures the relative difference between an old price and a new price, expressed as a percentage. It's commonly used in finance, economics, and retail to track price movements over time.

2. How Does The Calculator Work?

The calculator uses the percentage change formula:

Where:

• \( New \) — The new price value
• \( Old \) — The original price value

Explanation: The formula calculates the relative difference between two values by comparing the change to the original value.

3. Importance Of Price Change Calculation

Details: Calculating price change percentage is essential for financial analysis, investment decisions, inflation tracking, sales performance evaluation, and pricing strategy development.

4. Using The Calculator

Tips: Enter both old and new price values in dollars. The old price must be greater than zero for the calculation to work properly.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage change indicate?
A: A negative percentage change indicates a price decrease, while a positive percentage change indicates a price increase.

Q2: How is this different from percentage difference?
A: Percentage change compares a new value to an original value, while percentage difference compares two values without designating one as original.

Q3: Can this calculator handle currency conversions?
A: No, this calculator only calculates the percentage change. You need to convert currencies to the same unit before calculation.

Q4: What if the old price is zero?
A: The calculation is undefined when the old price is zero, as division by zero is mathematically impossible.

Q5: How precise are the results?
A: Results are calculated to two decimal places, which is typically sufficient for most price change analyses.