1. What Is Premium Percentage Increase?

Premium Percentage Increase calculates the relative change between two premium values, expressed as a percentage. It helps quantify how much a premium has increased from an initial value to a new value.

2. How Does The Calculator Work?

The calculator uses the percentage increase formula:

Where:

• \( \text{Premium1} \) — Initial premium amount ($)
• \( \text{Premium2} \) — New premium amount ($)

Explanation: The formula calculates the difference between the two premiums, divides by the original premium, and multiplies by 100 to convert to a percentage.

3. Importance Of Percentage Increase Calculation

Details: Calculating premium percentage increases is essential for financial analysis, insurance rate comparisons, budget planning, and understanding cost changes over time.

4. Using The Calculator

Tips: Enter both premium amounts in dollars. Premium1 must be greater than 0. The result shows the percentage increase (or decrease if negative) from Premium1 to Premium2.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative percentage mean?
A: A negative percentage indicates a decrease rather than an increase in premium value.

Q2: Can Premium2 be lower than Premium1?
A: Yes, this will result in a negative percentage, indicating a premium decrease.

Q3: What's the difference between percentage increase and absolute increase?
A: Absolute increase shows the dollar amount difference, while percentage increase shows the relative change as a percentage of the original value.

Q4: How accurate is this calculation?
A: The calculation is mathematically precise when correct values are entered. Results are rounded to two decimal places for readability.

Q5: Can I use this for non-premium calculations?
A: Yes, this formula works for any two numerical values where you want to calculate percentage change between them.