math

How to calculate percentage when old value is ZERO


I need the logic for the following situation. I am clueless in doing this.

Consider for January I have 10$ revenue and for February I have 20$ revenue.

My growth would be ((20-10)/10)*100% = 100%

If I have 0$ revenue for March.

Then my growth would be ((0-10)/10)*100 % =-100 %. Should I call this as negative percentage? (I know its deflation)

Going one step further,

If now I have 20$ revenue for April.

How can I calculate the growth now?, sure the following formula is wrong, ((20-0)/0)*100 %= ?????

My basic questions are

  1. Is there a better solution to find growth rate, other than the one above?

  2. If I use the aforementioned formula, should I take some value as reference? or this is wrong also?


Solution

  • If you're required to show growth as a percentage it's customary to display [NaN] or something similar in these cases. A growth rate, on the other hand, would be reported in this case as $/month. So in your example for April the growth rate would be calculated as ((20-0)/1.

    In any event, determining the correct method for reporting this special case is a user decision. Is it covered in your user requirements?