How To Calculate Percent Gain Between Two Numbers in Excel
In simple terms, the percentage gain expresses the profit which you will get in the form of percentages. This is the most easiest and attractive way to understand the variables of business transactions. In some cases, it is useful to calculate the increase or decrease of a certain amount.
So, if you are here to learn How To Calculate Percent Gain, then you will get simple formula through which you can easily find percentage gain. Also, you will know why it is important to calculate the percent gain. So, let’s begin with a formal introduction to the main topic.
How you can easily calculate percent gain?
To calculate percent gain, make sure you strictly follow every step:
1. If you want to calculate the percent gain or loss on your desired investment, then investors must need to determine the original price.
2. Also, subtract the prices, as shown in the formula. Through this step, you arrive at the loss or gain on your desired investment.
3. Multiple results only by 100. With this step, you will get the percentage of change.
Why it is important to calculate percent gain or loss?
Calculating the loss or gain on your desired investment is much important for you because it will give you an understanding that how much you earned. Also, you can easily compare the percent gain to your achieving target.
For example, if two investors want to invest in the business and each investor earned $500 from investing in the stock market, they both will have the same amount of gain.
It shows that both investments achieved the same outcome at the same time. On the other hand, if one investor wants to spend $20,000 to purchase the stock, and at the same time the other investor spends only $10,000, then it performed a better way because the second investor had less money at risk. Although, the second investor could easily invest another $10,000 to buy the second stock, and then he will earn an additional percent gain.
Formula to calculate percent gain?
The formula to calculate percent gain is very simple, and you don’t need to put any hard effort into it.
Percentage Gain = [(Total Price Sold – Original Purchase Price) / Original Purchase Price ] x 100
- Keep in mind that percentage gain calculation will only produce the amount, which is equivalent to the gain in the numerator.
- Then after the step of the divide, the decimal shows you how much you earned the original profit.
- In the last step, multiply the recent decimal by 100.
Example:
Consider, you bought your favorite jeans which cost $36 per pair. But this year, it cost you more at $45 per pair. So, you only need to calculate the percent increase in the price from the previous year to this year. So, using the formula:
Percentage Gain = [(Total Price Sold – Original Purchase Price) / Original Purchase Price ] x 100
45 – 36 = 9
9 / 36 = 0.25
0.25 x 100 = 25%
So, your jeans price is increased by 25% from the previous year to this year.
Frequently Asked Questions
1. How can I calculate a 10% increase?
Answer. By following three simple steps, you will get your answer:
1. All you need to do is divide the number by 10.
2. Then, alternatively multiply the value by 0.1.
3. In the last step, you need to add the product value of the previous step to your original number.
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