My Math Forum Percent Change Question

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 February 12th, 2012, 10:03 AM #1 Newbie   Joined: Feb 2012 Posts: 7 Thanks: 0 Percent Change Question This is to calculate immediate equity capture by flipping a house. Percent change is calculated by (B-A)/A * 100 However, in the current application I would like to use it for it results in a negative number every time. For instance, let's say you are flipping a house. It's worth 100,000 and you spent 70,000 on it. What was the percent change? To get the right value, 30%, you have to do (70,000-100,000)/100,000 * 100 = -30%. In other words, you gained 30% equity by flipping this house. The number is correct, but I don't want a - value.
 February 12th, 2012, 10:34 AM #2 Global Moderator   Joined: Dec 2006 Posts: 20,107 Thanks: 1907 How is "immediate equity capture" defined?
 February 12th, 2012, 12:10 PM #3 Newbie   Joined: Feb 2012 Posts: 7 Thanks: 0 Re: Percent Change Question Equity capture is the percent change of what you spent on the house, compared to its repaired value. In this scenario you spent 70k to buy the property and rehab the house. The house is now worth 100k, thats a 30% difference.
 February 12th, 2012, 08:31 PM #4 Senior Member   Joined: Apr 2011 From: USA Posts: 782 Thanks: 1 Re: Percent Change Question I don't get what you're trying to do. If you spent $70K an it's now worth$100K, that's not a 30% difference. It's 30% of the new value, not of what you originally put into it. The percentage of a change is the change on an original value, not on the new value. Your percent increase is 30/70, not 30/100. That's an approximate 43% increase over what you spent. The only meaning in this is that the original cost was 30% lower than its new value, but that's not a "percent change."

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