How to Calculate Percentage Change in Excel: Easy Guide

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Percentage change is a common calculation in Excel used to compare the difference between two values as a percentage. Whether you’re working with sales data, financial information, or any other type of numerical data, knowing how to calculate percentage change in Excel is an essential skill.

In this article, we will guide you through two straightforward methods for calculating percentage change, explain each step clearly, and show you when to use them.

What is Percentage Change?

Percentage change is the difference between two values expressed as a percentage of the original value. It helps you determine how much something has increased or decreased, relative to its starting point.

For example:

  • If you start with $100 and your value increases to $150, the percentage change is 50%.
  • If your value decreases from $100 to $75, the percentage change is -25%.

Understanding this concept will help you analyze data trends more effectively, especially when dealing with fluctuating values in business, finance, or other fields.

Methods to Calculate Percentage Change in Excel

There are two primary ways to calculate percentage change in Excel. Both methods give the same result, but they differ in the approach and ease of use. Let’s break down each method:

Method 1: Subtract the Old Value from the New Value and Divide by the Old Value

This method is the more traditional approach to calculating percentage change. Here’s how to do it step by step:

Step 1: Set Up Your Data

Let’s assume you have the following data:

  • Old Value: $50
  • New Value: $70

Step 2: Subtract the Old Value from the New Value

The first part of the formula is to subtract the old value from the new value:

Difference = New Value – Old Value

For this example:

Difference = 70−50 = 20

Step 3: Divide the Difference by the Old Value

Next, divide the difference by the old value:

Percentage Change = (Difference/Old Value) = (20/50) = 0.4

Step 4: Multiply by 100 to Get the Percentage

Finally, multiply the result by 100 to convert it into a percentage:

Percentage Change = 0.4 X 100 = 40%

Thus, the percentage change from $50 to $70 is 40%.

Method 2: Divide the New Value by the Old Value and Subtract 1

The second method to calculate percentage change is a simplified version. In this case, you divide the new value by the old value and subtract 1.

Step 1: Set Up Your Data

Using the same example:

  • Old Value: $50
  • New Value: $70

Step 2: Divide the New Value by the Old Value

Divide the new value by the old value:

Result = (New Value/Old Value) = (70/50) = 1.4

Step 3: Subtract 1 from the Result

Now subtract 1 from the result:

Percentage Change = 1.4 - 1 = 0.4

Step 4: Multiply by 100 to Get the Percentage

Finally, multiply by 100:

Percentage Change = 0.4 X 100 = 40%

So, once again, the percentage change is 40%.

Which Method Should You Use?

Both methods provide the same result, and the choice of which to use often depends on personal preference or convenience. Method 2 is slightly quicker to write because it doesn’t require parentheses. However, Method 1 is the more intuitive option, especially for those new to percentage calculations.

Using Excel Formulas to Automate Percentage Change

Instead of manually calculating percentage change, you can use Excel formulas to automate the process. Below is a simple formula for both methods.

Formula for Method 1

The Excel formula for Method 1 (subtracting the old value from the new value and dividing by the old value) is:

= (New Value - Old Value) / Old Value

For example, if your old value is in cell A1 and your new value is in cell B1, the formula would look like this:

= (B1 - A1) / A1

This formula will return the percentage change as a decimal. To convert it to a percentage, simply format the result cell as a percentage.

Formula for Method 2

The Excel formula for Method 2 (dividing the new value by the old value and subtracting 1) is:

= (New Value / Old Value) - 1

Again, using the same cell references (A1 for the old value and B1 for the new value), the formula would be:

= (B1 / A1) - 1

You can format this result as a percentage as well.

Example: Percentage Change in Excel with Multiple Data Points

Let’s look at an example where you calculate percentage changes for multiple values. Assume you have the following data:

ProductOld ValueNew ValuePercentage Change
A$100$15050%
B$200$180-10%
C$50$8060%

Step-by-Step Calculation in Excel

  1. Enter Data: Input your old and new values in the spreadsheet.
  2. Use Formula: In the Percentage Change column (D), use the formula = (C2 - B2) / B2 for Method 1 or = (C2 / B2) - 1 for Method 2.
  3. Format as Percentage: After applying the formula, format the result cells as percentages.

Excel will automatically calculate the percentage change for each product. The result will show the percentage increase or decrease for each item.

How to Change the Number of Decimal Places in Excel

When working with percentages in Excel, you might need to adjust the number of decimal places for better readability or precision.

  1. Select the Cells: Highlight the cells containing your percentage values.
  2. Use the Ribbon:
    • Go to the Home tab.
    • In the Number group, find the Increase Decimal and Decrease Decimal buttons.
    • Click the buttons to adjust the decimal places as needed.
  3. Using Format Cells:
    • Right-click the selected cells and choose Format Cells.
    • In the Format Cells dialog box, go to the Number tab.
    • Select Percentage and specify the number of decimal places.
    • Click OK.

How to Calculate a Percentage Increase in Excel

Percentage increase measures the growth from an initial value to a higher final value.

Formula for Percentage Increase:

Percentage Increase = ((New Value - Old Value) / Old Value) X 100

Steps:

  1. Enter the old value in A2 and the new value in B2.
  2. Use the formula: = (B2 - A2) / A2
  3. Format the result as a percentage:
    • Go to the Home tab.
    • Click on the % button in the Number group.

Example:

Old ValueNew ValuePercentage Increase
507550%

Explanation: The increase from 50 to 75 is (75-50)/50 = 0.5, which is 50%.

How to Calculate a Percentage Decrease in Excel

Percentage decrease measures the reduction from an initial value to a lower final value.

Formula for Percentage Decrease:

Percentage Decrease = ((Old Value−New Value) / Old Value) X 100

Steps:

  1. Enter the old value in A2 and the new value in B2.
  2. Use the formula: = (A2 - B2) / A2
  3. Format the result as a percentage:
    • Highlight the cells with results.
    • Click on the % button in the Home tab.

Example:

Old ValueNew ValuePercentage Decrease
1008020%

Explanation: The decrease from 100 to 80 is (100-80)/100 =0.2, which is 20%.

How to Calculate Absolute Value of Percent Change

The absolute value of percent change represents the magnitude of the change, disregarding whether it’s an increase or decrease.

Formula:

Absolute Percent Change=∣((New Value−Old Value)/Old Value)×100∣

Steps:

  1. Enter the old value in A2 and the new value in B2.
  2. Use the formula: = ABS((B2 - A2) / A2)
  3. Format the result as a percentage:
    • Highlight the result cells.
    • Click the % button in the Home tab.

Example:

Old ValueNew ValueAbsolute Percent Change
507550%
1008020%

These methods ensure you can calculate, format, and interpret percentage changes in Excel efficiently. Whether dealing with increases, decreases, or absolute values, Excel provides the tools to simplify your calculations.

Common Errors to Avoid When Calculating Percentage Change

While calculating percentage change in Excel is fairly straightforward, there are a few common mistakes that users often make:

  • Dividing by Zero: If the old value is zero, the formula will return an error. To avoid this, make sure your data is valid and contains no zeros in the old value.
  • Incorrect Cell References: Ensure that the correct cell references are used in your formulas. Incorrect referencing can lead to errors in your calculations.
  • Formatting Issues: When you don’t format the result as a percentage, Excel will display the number as a decimal. Always remember to format the result as a percentage for clarity.

Final Thoughts

Knowing how to calculate percentage change in Excel is a valuable skill that can help you analyze data and make better decisions. Whether you’re using Method 1 or Method 2, the process is simple and easy to apply. Excel offers powerful tools to automate these calculations, allowing you to save time and focus on interpreting your results. Remember to check for common errors like dividing by zero and to format your results correctly for clarity.

Frequently Asked Questions

What is the formula to calculate percentage change in Excel?

The formula to calculate percentage change is either (New Value - Old Value) / Old Value or (New Value / Old Value) - 1. Both methods give the same result when formatted as a percentage.

How can I format percentage results in Excel?

To format results as percentages, highlight the cells, go to the Home tab, and click the % button in the Number group. You can also use the Format Cells dialog box to customize decimal places.

What is the difference between percentage increase and decrease?

Percentage increase measures the growth from an old value to a new, higher value, while percentage decrease measures the reduction from an old value to a new, lower value. Both can be calculated using Excel formulas.

How do I handle zero or blank values in percentage change calculations?

If the old value is zero, percentage change cannot be calculated and Excel will display #DIV/0!. Replace zero with a small placeholder value or handle such cases separately to avoid errors.

Can Excel calculate absolute percentage change?

Yes, you can calculate the absolute value of percentage change using the formula =ABS((New Value - Old Value) / Old Value). Format the result as a percentage for clarity.

What is the quickest way to calculate percentage change for a large dataset?

Use Excel formulas and absolute references to automate calculations for large datasets. Apply the formula once and copy it down the column to calculate percentage changes for all rows.

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