Percentage Change Calculator | Measure Increase or Decrease

Mathematically, calculating percentage change from zero involves division by zero, which is undefined. This reflects a conceptual issue: when starting from nothing, the relative increase is infinitely large in percentage terms. In practical applications, alternatives include: (1) reporting the absolute change instead, (2) using a small non-zero baseline if appropriate, or (3) framing the change differently, such as "new introduction" rather than a percentage change.

Percentage change measures relative difference between values, while percentage points measure absolute difference between percentages. For example, if interest rates rise from 2% to 3%, that's an increase of 1 percentage point but a 50% percentage change (since 3% is 50% more than 2%). Confusing these concepts is a common source of misinterpretation, especially in finance, economics, and statistics reporting.

To find the cumulative effect of multiple percentage changes, you must compound them rather than add them. For example, a 10% increase followed by another 10% increase doesn't equal a 20% total increase. Instead, calculate: (1 + 0.1) × (1 + 0.1) = 1.21, representing a 21% total increase. For annual growth rates over multiple years, use the compound annual growth rate (CAGR) formula: CAGR = (End Value/Start Value)^(1/years) - 1.