How to Calculate the Percentage Change in Profit for Accounting

Step 1

Subtract the prior accounting period's profit from the current accounting period's profit. The result gives you the numerical change in profit. For example, if last quarter's profits were \$76,000 and this quarter's profits equal only \$72,000, subtract \$76,000 from \$72,000 to get -\$4,000, or a decrease of \$4,000.

Step 2

Divide the numerical change in profit by the prior accounting period's profit to find the rate of change. In this example, divide the decrease of \$4,000 by the prior accounting period's profit of \$72,000 to get a decreasing rate of 0.055556 per year.

Step 3

Multiply the rate by 100 to find the percentage change in the profit from one accounting period to the next. In this example, multiply 0.055556 by 100 to get a change of about 5.56 percent.