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How To Calculate Percentage Difference From Month To Month?

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Rory Copus Profile
Rory Copus answered
There is a formula to work out the percentage difference. This formula is as follows:

(B / A) - 1 X 100 where B is the larger of the two numbers and A is the smaller of the two numbers.

When you are first trying to work out formulas and sums, it is always best to use a simple and straightforward question which you already know the answer to as this will help you see whether or not you have done it right. Below is an easy example which should be easy to follow as the numbers are obvious.

B is divided by A and then 1 is subtracted; this finds the difference; then to find the percentage difference, this number must be multiplied by 100. So to find the percentage difference month to month the value for each month must be known. For example if January was 40 and February was 80, the percentage difference would be (B / A) - 1 X 100 where B = 80 and A = 40 the formula is (80 / 40) - 1 X 100. The sum for this would look like this: 2 - 1 X 100 = 1 X 100 which equals 100 %. This is the percentage difference.

However to use a more difficult example, if the value for March is 33 and the value for April is 75 the percentage difference would be found using the same formula; ( B / A ) - 1 X 100. In this case it would look like this:

(75 / 33) - 1 X 100

= 2.27 - 1 X 100

= 1.27 X 100

=127. Therefore the percentage difference in this case is 127%.
amber Jhon Profile
amber Jhon answered
To calculate the percentage difference from month to month use the following formula:

Percentage change = (current month - previous month)/previous month

For example, if units sold in march are 600 and units sold in February are 500 then percentage change is as follows:

Percentage change = (600 - 500)/500 = 0.2 or 20%

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