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# Relative Change Calculator Online

The Relative Change Calculator is a powerful mathematical tool designed to quantify the proportional change between an initial (old) value and a final (new) value. This measure of change is pivotal in various sectors including finance, science, and daily life, providing insights into growth rates, performance metrics, and more. By comparing the old and new values, users can quickly understand whether there’s been an increase, decrease, or no change at all, aiding in decision-making processes.

## Formula of Relative Change Calculator

This formula encapsulates the essence of calculating relative change, expressing the difference between the new and old values as a fraction of the original value.

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#### Here’s a breakdown of the terms:

• New Value: This is the final value after the change.
• Old Value: This is the initial value before the change.

#### Expressing as a Percentage:

To make the relative change more understandable, especially in financial and statistical analysis, it’s often expressed as a percentage. This conversion is simple:

#### Interpreting the Result:

• A positive relative change signifies an increase from the original value.
• A negative relative change signifies a decrease from the original value.

## Example of Relative Change Calculator

Let’s apply the formula to a real-world scenario for a clearer understanding. Suppose a company’s revenue was \$1 million last year and increased to \$1.2 million this year. The relative change in revenue can be calculated as follows:

##### Relative Change (%) = (1,200,000 – 1,000,000) / 1,000,000 * 100% = 20%

This result indicates a 20% increase in the company’s revenue from the previous year.

## Most Common FAQs

How do I calculate relative change in Excel?

You can easily calculate relative change in Excel by entering the old and new values in two cells and applying the formula `(New Value - Old Value) / Old Value * 100%` in a third cell to get the percentage change.

Can relative change be negative?

Yes, a negative relative change indicates that the new value is less than the old value, signifying a decrease.

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