Percentage difference is the absolute value of the difference over the mean times 100. It is used when both values mean the same kind of thing. |
- Find the difference between one value from the other ignoring negative sign if any.
- Find the average between one value and the other.
- Divide the difference by average.
- Multiply the obtained result by 100 and add a "%" sign.
Percentage Difference = $|\frac{First\ value - Second\ value}{\frac{(First\ value + Second\ value)}{2}}|$ $\times$ 100
Percentage difference is always a positive value.
Example 1: Cost of ice cream in one shop is $\$$160 and $\$$140 in another shop. Find the percentage difference.
Solution:
Difference in cost of ice cream = $\$$160 - $ \$$140
= $\$$20
Average price of ice creams
$\frac{$160 + $140}{2}$
= $\$$150
Divide $\frac{$20}{$150}$
= 0.133
Now multiply above result by 100 and add % sign
= 0.133 * 100
= 13.3%
Therefore, the percentage difference between the ice creams is 13.3%
Example 2: For an insurance company David sells a share for $\$$85 and Michelle sells for $\$$92. Find the percentage difference.
Solution :
Difference in share prices = $\$$85 - $ \$$92
= |-7|
= 7
Average price of shares = $\frac{$85+$92}{2}$
= $88.5
Using percentage difference formula, we get
Percentage difference = $\frac{$7}{$88.5}$ * 100
= 7.90
Therefore, the percentage difference between the shares = 7.90 %