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Percentage Difference


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.
Here neither value is important than the other.
Percentage difference is defined as the difference between two values divided by the average of the two values. It is usually expressed in percentages.
We can also refer the percentage difference as relative percent difference or comparative percent difference. lt is represented by the symbol ‘%’.

Steps for Calculating Percentage Difference

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Steps for calculating percentage difference is explained below.
  • 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.

Formula for Percentage Difference

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Formula for percentage difference is given below:
Percentage Difference = $|\frac{First\ value - Second\ value}{\frac{(First\ value + Second\ value)}{2}}|$ $\times$ 100
Percentage difference is always a positive value.

Percentage Difference Examples

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Example 1: Cost of ice cream in one shop is $\$$160 and $\$$140 in another shop. Find the percentage difference.

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 %