1. What is the Rate of Increase Formula?

The Rate of Increase Formula calculates the relative change between two values, expressed as a decimal or percentage. It measures how much a quantity has grown relative to its original value.

2. How Does the Calculator Work?

The calculator uses the rate of increase formula:

Where:

• \( New \) — The current or final value
• \( Old \) — The original or initial value
• \( Rate \) — The rate of increase as a decimal

Explanation: The formula calculates the proportional change from the old value to the new value. A positive result indicates growth, while a negative result indicates decline.

3. Importance of Rate Calculation

Details: Rate of increase calculations are essential in finance for investment returns, in economics for growth rates, in business for sales performance, and in science for measuring changes over time.

4. Using the Calculator

Tips: Enter both new and old values in the same units. The calculator will provide results in both decimal and percentage formats. Ensure both values are positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative rate indicate?
A: A negative rate indicates a decrease or decline from the old value to the new value.

Q2: How do I convert the decimal rate to percentage?
A: Multiply the decimal rate by 100. For example, 0.25 becomes 25%.

Q3: What's the difference between rate of increase and absolute increase?
A: Absolute increase is New - Old (the difference), while rate of increase is (New - Old)/Old (the proportional change).

Q4: Can I use this for percentage decrease?
A: Yes, the formula works for both increases and decreases. A negative result represents a percentage decrease.

Q5: What if the old value is zero?
A: The formula is undefined when the old value is zero, as division by zero is mathematically impossible.