How to Calculate Percent Change in Excel

Excel is a versatile tool used by accountants for financial analysis, but it’s handy for anyone. In Excel, data is entered into cells, which are like blocks where rows and columns intersect. You can use Excel to analyze data with graphs for visual insights or formulas for trends. Let’s see how to calculate percentage increases in Excel. Percentage represents a proportion out of 100, symbolized by ‘%’. The formula is Percentage = (Numerator/Denominator) × 100. For instance, a 20% increase in 100 results in 120.

What is Percent Change in Excel

Percentage change in Excel lets you figure out how much a value has gone up or down compared to another value. It’s like a percentage report card for your data. For example,

• You have two numbers, like your sales this month and last month.
• Excel helps you calculate the difference between those numbers.
• Then it divides that difference by the original number (usually the older one).
• Finally, it shows you this difference as a percentage.

So, if your sales were higher this month, you’ll see a positive percentage change. If they were lower, you’d see a negative percentage change.

Percent Change in Excel is a handy tool for tracking changes in things like:

• Sales figures
• Inventory levels
• Website Traffic
• Stock prices

Excel Percent Change Formula

In Excel, to calculate the percentage change between two values, you can use a simple formula. Here’s the syntax:

Both formulas you provided are correct ways to calculate percent change in Excel, though they are slightly different in their representation.

1. Percent Change = (New Value – Old Value) / Old Value

This formula calculates the absolute change between the new and old values and then divides it by the old value. It provides the relative change as a proportion of the old value.

2. Percent Change = New Value / Old Value – 1

This formula first calculates the ratio of the new value to the old value and then subtracts 1. It represents the relative change as a multiplier of the old value.

Both formulas yield the same result; they just represent the calculation differently. Users can choose the one that is most intuitive or convenient for their purposes.

How to Calculate Percent Change in Excel

Step 1: Open Excel and Enter Data

First, enter the initial and final values in two adjacent cells. Let’s say the initial value is in cell A1 and the final value is in cell B1.

Step 2: Calculate Change

In a new cell, subtract the initial value from the final value. You can do this by typing “=B1-A1” in an empty cell. This will give you the difference between the final and initial values.

Step 3: Calculate Percent Change

In another new cell, divide the change value by the initial value. You can do this by typing “=C1/A1” where C1 is the cell containing the change value and A1 is the initial value.

Step 4: Convert to Percentage

By default, Excel will display this as a decimal. To convert it to a percentage, click on the cell containing the percent change value, then click on the “Formate” tab in the Excel ribbon. In the “Number” group, click on the dropdown menu next to the percentage symbol (%) and select “Percentage”.

Step 5: Format(Optional)

You may also want to adjust the formatting of the cell to make it more visually appealing. You can do this by right-clicking on the cell, selecting “Format Cells”, and then choosing your desired formatting options.

Excel formula for Percent Increase /Decrease

As percent increase or decrease is just a particular case of percentage variance, it is calculated with the same formula:

(new value – old value) / Old value

Or

new value / initial value – 1

The mathematical formula to calculate value after a percentage increase is given below,

Total value = value(1 + (percentage increase/100)

For example, a 20% increase in 100 will be calculated as:

Final value = 100(1 + (20/100))

= 100(120/100)

= 120

Calculation using Excel

We can use the following formula in Excel to calculate the final value after a percentage increase:

= cell_value1 * ( 1+ cell_value2)

cell_value1: It indicates the cell consisting of original value.

cell_value2: It indicates the cell containing percentage value.

Example:

Output:

How to Calculate a Percentage Increase in Excel

For the purpose of demonstration, we will use the following table in which the annual salary of different individuals is given along with the percentage of increment received. We will use the percentage increase formula to find out their final annual income after the increment.

Step 1: Use the formula

Step 2: Press Enter

Step 3: Drag the fill handle over to the data range.

Output:

How to Calculate a Percentage Decrease in Excel

For percentage decrease, we can use the following formula:

 = cell_value1 * ( 1- cell_value2)

cell_value1: It indicates the cell consisting of original value.

cell_value2: It indicates the cell containing percentage value.

For the purpose of demonstration, we will use the following table in which the value of the different products is given along with the percentage discount to be given on the products. We will use the percentage decrease formula to find out their final value after the discount.

Step 1: Use the formula

Step 2: Press Enter

Step 3: Drag the fill handle over to the data range.

Output:

How to Calculate Percent Change Absolute Value

In Excel, the usual way to calculate the percentage change returns a positive value for an increase and a negative one for a decrease. To find the absolute value of the percentage change, which disregards whether it’s an increase or decrease, you can use the ABS function to enclose the formula like this:

ABS((new_value – old_value) / old_value)

Tips and Tricks

• To format the results as percentages, select the cells and apply the percentage format from the number format options in the Home tab.
• Keep in mind the use of absolute and relative cell references when using formulas and or copying cells for calculations.
• Use Conditional Formatting to visually highlight the adjusted values based on specific criteria.

Conclusion

Understanding how to calculate percent change in Excel is essential for analyzing data trends and tracking growth effectively. By following the steps mentioned here, you can easily compare values over time, aiding in making informed decisions based on valuable insights. Whether you’re dealing with financial data, sales figures, or any other numerical data, knowing how to calculate percentage change enables an accurate assessment of performance.

Whether it’s sales figures, inventory levels, website traffic, or stock prices you’re analyzing, mastering Excel’s percent change calculation empowers confident, data-driven decision-making. Start applying these techniques today to unlock actionable insights and drive success in your endeavors.

FAQs- How to Calculate Percent Change in Excel

Is there an Excel formula for percent change?

Yes, there are Excel formulas for percent change, including “(New Value – Old Value) / Old Value” and “New Value / Old Value – 1”. These formulas help calculate percentage change efficiently in Excel.

How do you calculate percent change?

To calculate percent change, subtract the initial value from the final value, then divide the result by the initial value, and finally multiply by 100 to express it as a percentage. The formula is (Final Value – Initial Value) / Initial Value * 100. This method helps in analyzing trends, tracking growth, and making informed decisions in various fields such as finance, sales, and data analysis.

How do you calculate the rate of change in Excel?

To calculate the rate of change in Excel, you can subtract the initial value from the final value and then divide the result by the initial value. Alternatively, you can use the formula “=(New Value – Old Value) / Old Value”. This process allows you to determine how much a value has changed relative to its original value, aiding in analyzing trends and making informed decisions.