How to Work Out Percentage Difference Between Two Numbers
Understanding how to calculate the percentage difference between two numbers is a fundamental skill in various fields, from finance to statistics. Whether you’re analyzing sales data, comparing test scores, or evaluating investment returns, knowing how to compute this metric can provide valuable insights. In this article, we will explore the steps and formulas needed to work out the percentage difference between two numbers effectively.
Understanding the Concept
Before diving into the formula, it’s essential to understand the concept of percentage difference. It represents the change in value as a percentage of the original value. To calculate the percentage difference, you need to find the difference between the two numbers, divide it by the original value, and then multiply by 100.
Formula for Percentage Difference
The formula for calculating the percentage difference between two numbers, let’s call them ‘A’ and ‘B’, is as follows:
Percentage Difference = ((B – A) / A) 100
In this formula, ‘B’ is the new value, and ‘A’ is the original value. The difference between the two numbers (B – A) is then divided by the original value (A). The result is multiplied by 100 to convert it into a percentage.
Step-by-Step Guide
Now that we have the formula, let’s go through the steps to calculate the percentage difference between two numbers:
1. Identify the original value (A) and the new value (B).
2. Subtract the original value from the new value: B – A.
3. Divide the result from step 2 by the original value: (B – A) / A.
4. Multiply the result from step 3 by 100: ((B – A) / A) 100.
5. The final result is the percentage difference between the two numbers.
Example
Let’s say you want to calculate the percentage difference between the sales of two consecutive months. In January, the sales were $10,000, and in February, the sales increased to $12,000.
1. Original value (A): $10,000
2. New value (B): $12,000
3. Difference: B – A = $12,000 – $10,000 = $2,000
4. Divide the difference by the original value: $2,000 / $10,000 = 0.2
5. Multiply the result by 100: 0.2 100 = 20%
The percentage difference between the sales of January and February is 20%.
Conclusion
Calculating the percentage difference between two numbers is a straightforward process once you understand the concept and formula. By following the steps outlined in this article, you can easily determine the change in value as a percentage of the original value. This skill can be invaluable in various scenarios, helping you make informed decisions and comparisons.
