Calculate percentage change in Excel to measure growth, decline, and variance across sales, prices, performance metrics, and financial data. This comprehensive guide covers percentage increase formulas, percentage decrease calculations, and real-world business examples including year-over-year (YoY) growth, quarter-over-quarter (QoQ) comparisons, and variance analysis.
Percentage change measures the relative difference between two values, showing how much something has increased or decreased as a percentage of the original value. Unlike absolute change (New - Old), percentage change provides context—a $1,000 increase means something very different for a $5,000 product versus a $100,000 product. In business analytics, percentage change is the standard metric for tracking growth rates, performance trends, and comparative analysis.
The percentage change formula divides the absolute difference by the original value, then multiplies by 100 to convert to percentage format. Excel makes this calculation straightforward, though understanding when to show positive vs. negative percentages and how to format results is crucial for clear reporting.
Quick Example:
Sales increased from $50,000 (January) to $65,000 (February). Percentage change = ($65,000 - $50,000) / $50,000 = 0.30 = 30% increase. This standardized metric allows comparison across different scales and time periods.
Mathematical Formula:
Percentage Change = ((New Value - Old Value) / Old Value) × 100Excel Formula:
= (B2 - A2) / A2Where A2 = Old Value, B2 = New Value. Format cell as percentage (Ctrl+Shift+5) for automatic % display.
Example: Old: $100 | New: $120
= (120 - 100) / 100 = 0.20 = 20%Result: 20% increase
When new value is greater than old value. Result is positive, indicating growth.
= (New Value - Old Value) / Old ValueAlternative: Direct Division Method
= (B2 / A2) - 1This method divides new by old, then subtracts 1. Mathematically equivalent, sometimes more intuitive.
Sales Growth Example:
Q1 Sales: $250,000 | Q2 Sales: $287,500
= (287500 - 250000) / 250000 = 0.15 = 15%Sales grew 15% from Q1 to Q2
When new value is less than old value. Result is negative, indicating decline.
= (New Value - Old Value) / Old ValueSame formula as percentage increase—Excel automatically shows negative sign when new value is smaller.
Price Reduction Example:
Original Price: $500 | Sale Price: $375
= (375 - 500) / 500 = -0.25 = -25%Price decreased 25% (or save 25%)
Calculate annual revenue growth to measure business performance and present to stakeholders.
| Year | Revenue | YoY Change | Formula |
|---|---|---|---|
| 2023 | $850,000 | - | N/A |
| 2024 | $1,020,000 | +20% | =(B3-B2)/B2 |
| 2025 | $1,173,000 | +15% | =(B4-B3)/B3 |
Interpretation: Strong growth in 2024, moderate but healthy growth in 2025.
Track which products are growing vs. declining to inform inventory and marketing decisions.
| Product | Last Month | This Month | Change % |
|---|---|---|---|
| Widget A | $45,000 | $54,000 | +20% |
| Widget B | $38,000 | $36,100 | -5% |
| Widget C | $52,000 | $67,600 | +30% |
Excel Formula: =(C2-B2)/B2 in column D, format as percentage
Track whether departments are over or under budget using percentage variance.
Scenario: Marketing budget was $50,000, actual spend $58,000
Variance % = (58000 - 50000) / 50000 = 0.16 = 16%⚠️ Marketing exceeded budget by 16%, requiring review and justification
Enter formula: =(B2-A2)/A2
Select result cell → Press Ctrl+Shift+5
✓ Excel converts 0.15 to 15% automatically
Enter formula: =((B2-A2)/A2)*100
Leave as number format or add "%" symbol manually
⚠️ Not recommended—harder to copy and prone to errors
Conditional Formatting for Variance:
Apply green fill for positive changes, red for negative. Home → Conditional Formatting → Highlight Cells Rules → Greater Than/Less Than. Instantly visualize performance trends.
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