To answer the question “what is percentage difference?” we first need to understand what is a percentage. A percentage is just another way to talk about a fraction. A percentage is also a way to describe the relationship between two numbers. For example, we can say that 5 is 20% of 25, or 2 is 5% of 40. When we talk about a percentage, we can think of the % sign as meaning 1/100. Going back to our last example, if we want to know what is 5% of 40, we simply multiply all of the variables together in the following way:
5 × 1/100 × 40 = 200/100 = 2
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If you follow this formula, you should obtain the result we had predicted before: 2 is 5% of 40, or in other words, 5% of 40 is 2. If you like, you can now try it to check if 5 is 20% of 25.
Now, if we want to talk about percentage difference, we will first need a difference, that is, we need two, non identical, numbers. Let’s take, for example, 23 and 31; their difference is 8. Now we need to translate 8 into a percentage, and for that, we need a point of reference, and you may have already asked the question: Should I use 23 or 31? As we have not provided any context for these numbers, neither of them is a proper reference point, and so the most honest answer would be to use the average, or midpoint, of these two numbers.
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We would like to remind you that, although we have given a precise answer to the question “what is percentage difference?”, precision is not as common as we all hope it to be. It is very common to (intentionally or unintentionally) call percentage difference what is, in reality, a percentage change. This makes it even more difficult to learn what is percentage difference without a proper, pinpoint search.
We will tackle this problem, along with dishonest representations of data, in later sections. We hope this will help you distinguish good data from bad data so that you can tell what percentage difference is from what percentage difference is not. For now, though, let’s see how to use this calculator and how to find percentage difference of two given numbers.
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