Knowing the percent difference might be helpful when comparing two sets of values if you study or work with numbers. The percentage difference calculator can be used to compare sales from one year to the next. It is employee compensation over a specific period or price variations for particular products. This value’s definition and calculation can assist you in tracking organizational development and distinguishing between related metrics.
In this piece, we define percent difference, outline its applications, and demonstrate how to compute it.
What is the percent difference calculator?
The difference between two values divided by their average is the percent difference. It can be used to calculate the percentage difference between two comparable numbers. You might, for instance, contrast the cost of a laptop from this year with one from the previous year.
It’s crucial to distinguish between percent difference, percent change, and percent mistake. A percentage change compares an older value with a newer one.
How to Figure Out the Percentage Difference
The processes to follow for determining the percentage difference calculator are listed below:
Establish the Values you’re Utilizing
Choosing the values you’ll use is the first step in computing the percent difference. Keep in mind that you need two related variables to calculate the percent difference.
For instance, consider how many pairs of trainers were sold last year versus this year. These two have similar values because they both relate to the sales of trainers. You can start your % difference computation once you’ve established that your two variables are closely related.
Determine the Variation between the Two Values.
You can determine the difference after you are aware of the values you are comparing. Subtract one value from the other to accomplish this. The difference can be calculated as follows using the same example:
1,000 – 800 = 200
Determine the Values’ Average
The average of the two linked numbers should then be determined. Take the total of the two values to determine the average. Divide the total by two once you get it. The average is the result, as seen in the example below:
1,000 + 800 = 1,800
1,800 / 2 = 900
Subtract from the Average
The difference you computed in steps two and three should then be divided by the average. Your computation, using the same illustration, is:
200 / 900 = 0.2222
Change the Proportion
Then, transform the number into a percentage. Multiply it by 100 to achieve this. If you arrive at 0.05, you would multiply 0.05 by 100 to obtain 5%. Your % difference is this. Your computation is as follows using the 800 and 1,000 in the earlier example:
0.2222 x 100 = 22.22%
If your calculation yields a negative percentage, ignore the minus sign. If you receive a percent difference of -5%, for instance, the percent difference is treated as 5% rather than -5%.
When the Percentage Difference Calculator is Used?
There are several metrics you may use to compare two values. When two values you are measuring are related to one another, you utilize the percentage difference calculator. Here are some situations where using a percent difference is appropriate:
- To assess the difference between the volume of inventory this year and last year.
- To compare the number of sales made this year with those made last year.
- To compare the number of employees from last year with those from this year.
In contrast, you would compute the % change if you were comparing a new value to an old one. Calculate % inaccuracy by comparing an exact value to an estimate. Verify that the values you are using match the results of your computation.
Use of Negative Values to Calculate Percentage Differences
As was already discussed, it’s crucial to disregard any warning indicators regarding your final percent difference. When given negative values, these numbers will balance out in your calculation.
For instance, you still ignore the minus sign if your negative numbers produce a negative result. To calculate a percent difference by using negative values, follow these steps:
Identify the Negative Values you’re Utilizing
You first choose the negative values that will be used in your calculations. Keep in mind that you require two related variables to calculate the percent difference. You can utilize the numbers -5 and -7 as an example.
Figure out how much the Two Negative Values Differ
You can compute the difference once you are aware of the negative values you are comparing. To do this, subtract one negative value from another. An illustration utilizing the example’s values is shown below:
(-7) – (-5) = -2
Conclusion
Percentage difference calculators are essential in so many facets of our lives! This article will teach you how to use percentages, whether it’s for your auto loan payment or a rise. Read and pick up advice, details, and more.