1. What is Loss Percentage?

Loss percentage measures the relative decrease in value from an original amount to a final amount. It's commonly used in finance, business, and economics to quantify losses.

2. How Does the Calculator Work?

The calculator uses the loss percentage formula:

Where:

• Original — The initial value before loss
• Final — The remaining value after loss

Explanation: The formula calculates what percentage of the original value was lost by comparing the difference between original and final values to the original value.

3. Importance of Loss Percentage

Details: Calculating loss percentage helps in financial analysis, investment decisions, performance evaluation, and business planning. It provides a standardized way to compare losses across different scales.

4. Using the Calculator

Tips: Enter the original and final values in the same units. Both values must be positive numbers, with the original value greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative loss percentage mean?
A: A negative loss percentage indicates a gain rather than a loss, meaning the final value is higher than the original value.

Q2: How is this different from percentage change?
A: Percentage change can be positive or negative (gain or loss), while loss percentage specifically measures decreases in value.

Q3: What's the maximum possible loss percentage?
A: The maximum is 100%, which occurs when the final value reaches zero (complete loss of value).

Q4: Can I use this for percentage profit calculation?
A: No, this calculates only losses. For profits, you would need a percentage gain calculator.

Q5: Why is the original value in the denominator?
A: Using the original value as the basis (denominator) provides a consistent reference point for comparing relative losses.