Annual Percent Change formula

Definition

The annual percent change formula is used to calculate the percentage increase or decrease in a value over a period of one year. It compares the difference between the initial and final values to the initial value, and then expresses it as a percentage.

Analogy

Think of the annual percent change formula like tracking your growth spurt. If you were 5 feet tall last year and now you're 6 feet tall, you can use this formula to find out how much you've grown in terms of percentage.

Related terms

Exponential Growth: A type of population growth where the rate increases continuously over time.

Linear Growth: A type of population growth where the rate remains constant over time.

Doubling Time: The amount of time it takes for a population or quantity to double in size.