Whether you’re investing in stocks, running a business, or just curious about your savings growth, understanding percentage gain is essential. The percentage gain formula is a fundamental tool in finance and economics, used to measure the increase in value of an investment or asset over a period. This article will delve into the details of the percentage gain formula, explaining how it works and providing examples to illustrate its application.

### The Formula

The percentage gain formula is used to calculate the increase in value of an investment as a percentage of the original value. The formula is expressed as:

$Percentage Gain=(Original ValueNew Value−Original Value )×100$

### Breaking Down the Formula

**New Value**: This is the value of the investment or asset at the end of the period you are measuring.**Original Value**: This is the value of the investment or asset at the beginning of the period.**Difference (New Value – Original Value)**: This represents the absolute increase in value.**Division by Original Value**: This step calculates the increase as a fraction of the original value.**Multiplication by 100**: This converts the fraction into a percentage.

### Example Calculation

Let’s say you invested $1,000 in a stock, and after one year, the value of your investment has increased to $1,250. To find the percentage gain:

**Identify the values**:- New Value: $1,250
- Original Value: $1,000

**Calculate the difference**: $1,250−1,000=250$**Divide by the Original Value**: $,250 =0.25$**Convert to a percentage**:

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