Enter the current period’s closings price and the previous periods closing price into the calculator to determine the net change of an asset.
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Net Change Formula
The following equation can be used to calculate the net change of an asset or equity.
NC = CP – PP
- Where NC is the net change
- CP is the current periods closing price
- PP is the previous periods closing price
To calculate the net change as a percent, use the following formula.
NC (%) = (CP – PP) / PP * 100
Net Change Definition
A net change is defined as the absolute change in the value of an investment or asset.
Net Change Example
How to calculate net change?
The first step in calculating the net change of an investment or asset is to determine the current price of that asset. In this example, the current price of the asset is found to be $5,000.00
The next step is to calculate or determine the previous price of the previous period. In this case, the previous price was $4,000.00.
Finally, calculate the net absolute change and the percentage change using the formulas above:
NC = CP – PP = $1,000.00
NC (%) = (CP – PP) / PP * 100 = 25%
FAQ
A net change is an absolute change in the value of an asset. It’s determined using the current closing price, and the closing price at an arbitrary time period of your choosing.
