Why do we add -1 to formula. I have no idea no matter how simple the explination can be :)

[pedie]

Hi, why do we add -1 to formula. I have no idea no matter how simple the explination can be

For exmaple when we calculate percentage change between different months data we input formula like end month value/start month value -1
-1 is my question

Thanks !

 

[texasalynn]

post your formula

 

[Ron Coderre]

If
A1: 100
B1: 125

This formula returns the percentage that B1 is of A1
C1: =B1/A1
in this case...C1 returns 125%

We would substract 100% (or..1) the get the percent change
C1: =B1/A1-1
returns: 0.25 ...indicating an increase of 25%

If you change B1 to 75
C1 returns: -0.25 ...indicated a decrease of 25%

Does that help?

 

[pedie]

Ron, thank you very much! that make alot of sense now [even i thought so...however then i was confused with someone's exaplanation...]

Thanks again