Browse Definitions :
Definition

percent increase - percent decrease

> Go directly to percent change calculator

Definition: Percent increase and percent decrease are measures of percent change, which is the extent to which a variable gains or loses intensity, magnitude, extent, or value. The figures are arrived at by comparing the initial (or before) and final (or after) quantities according to a specific formula. It is assumed that both the initial and the final quantities are positive (larger than 0).

Suppose a quantity has an initial value of x1, and then increases or decreases to a final value of x2. The percent change, D%, is calculated by finding the difference x2 - x1 (subtracting the initial value from the final value), then dividing the result of this subtraction by x1 (the initial value), and finally multiplying by 100. Expressed as a formula:

D% = 100 (x2 - x1) / x1

If x2 > x1 (the final value is larger than the initial value, representing an increase in the variable quantity), then D% is a positive number. If x2 < x1 (the final value is smaller than the initial value, representing a decrease), then D% is a negative number.

As an example, suppose you buy stock in two companies A and B, both at a price of USD $1.25 per share in January of a given year. Suppose that by July, stock A has risen in value to USD $3.35 per share. Then for stock A:

DA% = 100 ($3.35 - $1.25) / $1.25 = +168%
Percent change is +168%, also expressed as a percent increase of 168%.

Imagine that stock B has fallen to USD $1.00 per share in the same time period. Then for stock B:

DB% = 100 ($1.00 - $1.25) / $1.25 = -20%
Percent change is -20%, also expressed as a percent decrease of 20%.

This was last updated in July 2008

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close