Calculating Percent Change
- =(new_value/original_value)-1
- =ABS(new_value-original_value)/ABS(original_value)
=(new_value/original_value)-1 is dedicated to beginners. This is really simple formula which you can calculate the percent change of two numbers. Remember that this syntax will give you wrong result when one of number is less than zero.
=ABS(new_value-original_value)/ABS(original_value) is more difficult, but it gives always correct results. I suggest you only use the second formula.
About the ABS Function
The ABS function returns the absolute value of a number. The absolute value of a number is the number without its sign.
Syntax: =ABS(number)
Number is the real number of which you want the absolute value.
Example 1 – using ABS function to calculate percent change
Number1: 8
Number2: 5
Formula is: =(8/5)-1
or
Formula is: =(8-5)/ABS(5)
Result is: 60%
Full answer: 8 is 60% greater than 5.
Example 2 – simple way to calculate percent change
Number1: $15 000
Number2: $10 000
Formula is: =(15000/1000)-1
or
Formula is: =(15000-10000)/ABS(10000)
Result is: 50%
Full answer: $15 000 is 50% greater than 10 000.
Example 3 – more difficult way of calculation percent change
This example is more difficult because one of the number is below zero. Thus you can use only the second formula with ABS function.
Number1: -6 000
Number2: 3 000
Formula is: =(-6000-3000)/ABS(3000)
Result is: 300%
Full answer: -6 000 is 300% less than 3 000.
Using such kind of formula will give you always the proper result. No matter if any of numbers will be below zero. I recommend using only this formula to calculate percent change in Excel.
Tip – percent style formatting
To format Percent Style cell just go to Ribbon > Home > Number and click Percent Style button.
Template
Further reading: Basic concepts Getting started with Excel Cell References
