how to create a formula in excel to calculate percentage increase

how to create a formula in excel to calculate percentage increase

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How to calculate percentage change or difference between two numbers in Excel?

This article is talking about calculating percentage change or difference between two numbers in Excel

Calculate percentage change/difference between two numbers with formula

As below screenshot shown, you need to calculate the percentage change between new number 94 and old number 80. The formula =(new_value-old_value)/old_value can help you quickly calculate the percentage change between two numbers. Please do as follows.

1. Select a blank cell for locating the calculated percentage change, then enter formula =(A3-A2)/A2 into the Formula Bar, and then press the Enter key. See screenshot:

2. Keep selecting the result cell, then click the Percent Style button in the Number group under Home tab to format the cell as percentage. See screenshot:

Now the percentage difference between two given numbers is calculated.

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Calculator

An electronic calculator is typically a portable electronic device used to perform calculations, ranging from basic arithmetic to complex mathematics.

The first solid-state electronic calculator was created in the early 1960s. Pocket-sized devices became available in the 1970s, especially after the Intel 4004, the first microprocessor, was developed by Intel for the Japanese calculator company Busicom. They later became used commonly within the petroleum industry (oil and gas).

Modern electronic calculators

Modern electronic calculators vary from cheap, give-away, credit-card-sized models to sturdy desktop models with built-in printers. They became popular in the mid-1970s as the incorporation of integrated circuits reduced their size and cost. By the end of that decade, prices had dropped to the point where a basic calculator was affordable to most and they became common in schools.

Computer operating systems as far back as early Unix have included interactive calculator programs such as dc and hoc, and calculator functions are included in almost all personal digital assistant (PDA) type devices, the exceptions being a few dedicated address book and dictionary devices.

In addition to general purpose calculators, there are those designed for specific markets. For example, there are scientific calculators which include trigonometric and statistical calculations. Some calculators even have the ability to do computer algebra. Graphing calculators can be used to graph functions defined on the real line, or higher-dimensional Euclidean space. As of 2016, basic calculators cost little, but scientific and graphing models tend to cost more.

In 1986, calculators still represented an estimated 41% of the world’s general-purpose hardware capacity to compute information. By 2007, this had diminished to less than 0.05%.^[1]

resource: wikipedia

Calculating Percentage Increase in Excel

Percentage increases involve two numbers. The basic mathematical approach for calculating a percentage increase is to subtract the second number from the first number. Using the sum of this figure, divide this remaining figure by the original number.

To give you an example, the cost of a household bill costs $100 in September, but $125 in October. To calculate this difference, you could use the excel formula =SUM(NEW-OLD)/OLD or for this example, =SUM(125-100)/100 in Excel.

If your figures are in separate cells, you can replace numbers for cell references in your formula. For example, if September’s bill amount is in cell B4 and October’s bill amount is in cell B5, your alternative Excel formula would be =SUM(B5-B4)/B4.

The percentage

The percentage increase between September and October is 25%, with this figure shown as a decimal number (0.25) by default in Excel using the formula above.

If you want to display this figure as a percentage in Excel, you’ll need to replace the formatting for your cell. Select your cell, then click the Percentage Style button in the Home tab, under the Number category.

Calculating Percentage Decrease in Excel

To calculate the percentage decrease between two numbers, you’ll use an identical calculation to the percentage increase. You subtract the second number from the first, then divide it by the first number. The only difference is that the first number will be smaller than the second number.

Using cell references, if October’s bill amount of $125 is in cell B4 and November’s bill amount of $100 is in cell B5, your Excel formula for a percentage decrease would be =SUM(B5-B4)/B4.

Calculating a Percentage as a Proportion of a Number

In Excel, the formula to calculate this example would be =50/100. Using cell references, where $100 is in cell B3 and $50 is in cell B4, the excel formula required is =B4/B3.