Financial Modeling Tutorials
- Excel Modeling
- Financial Functions in Excel
- Sensitivity Analysis in Excel
- Sensitivity Analysis
- Capital Budgeting Techniques
- Time Value of Money
- Future Value Formula
- Present Value Factor
- Perpetuity Formula
- Present Value vs Future Value
- Annuity vs Pension
- Present Value of an Annuity
- Doubling Time Formula
- Annuity Formula
- Present Value of an Annuity Formula
- Future Value of Annuity Due Formula
- Maturity Value
- Annuity vs Perpetuity
- Annuity vs Lump Sum
- Deferred Annuity Formula
- Internal Rate of Return (IRR)
- IRR Examples (Internal Rate of Return)
- NPV vs XNPV
- NPV vs IRR
- NPV Formula
- NPV Profile
- NPV Examples
- Advantages and Disadvantages of NPV
- Mutually Exclusive Projects
- PV vs NPV
- IRR vs ROI
- Break Even Point
- Break Even Analysis
- Breakeven Analysis Examples
- Break Even Chart
- Benefit Cost Ratio
- Payback Period & Discounted Payback Period
- Payback period Formula
- Discounted Payback Period Formula
- Payback Period Advantages and Disadvantages
- Profitability Index
- Feasibility Study Examples
- Cash Burn Rate
- Interest Formula
- Simple Interest
- Simple Interest vs Compound Interest
- Simple Interest Formula
- CAGR Formula (Compounded Annual Growth Rate)
- Growth Rate Formula
- Effective Interest Rate
- Loan Amortization Schedule
- Mortgage Formula
- Loan Principal Amount
- Interest Rate Formula
- Rate of Return Formula
- Effective Annual Rate
- Effective Annual Rate Formula (EAR)
- Compounding
- Compounding Formula
- Compound Interest
- Compound Interest Examples
- Daily Compound Interest
- Monthly Compound Interest Formula
- Discount Rate vs Interest Rate
- Discounting Formula
- Rule of 72
- Geometric Mean Return
- Geometric Mean vs Arithmetic Mean
- Real Rate of Return Formula
- Continuous compounding Formula
- Weighted average Formula
- Average Formula
- EWMA (Exponentially Weighted Moving Average)
- Average Rate of Return Formula
- Mean Formula
- Mean Examples
- Population Mean Formula
- Weighted Mean Formula
- Harmonic Mean Formula
- Median Formula in Statistics
- Range Formula
- Outlier Formula
- Decile Formula
- Midrange Formula
- Quartile Deviation
- Expected Value Formula
- Exponential Growth Formula
- Margin of Error Formula
- Decrease Percentage Formula
- Relative Change
- Percent Error Formula
- Holding Period Return Formula
- Cost Benefit Analysis
- Cost Benefit Analysis Examples
- Cost Volume Profit Analysis
- Opportunity Cost Formula
- Opportunity Cost Examples
- APR vs APY
- Mortgage APR vs Interest Rate
- Normal Distribution Formula
- Standard Normal Distribution Formula
- Normalization Formula
- Bell Curve
- T Distribution Formula
- Regression Formula
- Regression Analysis Formula
- Multiple Regression Formula
- Correlation Coefficient Formula
- Correlation Formula
- Correlation Examples
- Coefficient of Determination
- Population Variance Formula
- Covariance Formula
- Coefficient of Variation Formula
- Sample Standard Deviation Formula
- Relative Standard Deviation Formula
- Standard Deviation Formula
- Standard Deviation Examples
- Effect Size
- Sample Size Formula
- Volatility Formula
- Binomial Distribution Formula
- Multicollinearity
- Hypergeometric Distribution
- Exponential Distribution
- Central Limit Theorem
- Poisson Distribution
- Central Tendency
- Hypothesis Testing
- Gini Coefficient
- Quartile Formula
- P Value Formula
- Skewness Formula
- R Squared Formula
- Adjusted R Squared
- Regression vs ANOVA
- Z Test Formula
- Z Score Formula
- Z Test vs T Test
- F-Test Formula
- Quantitative Research
- Histogram Examples
Related Courses
Percentage error is calculated as the difference between the estimated number and the actual number in comparison to the actual number and is expressed as a percentage, to put it in other words, it is simply the difference between what is the real number and the assumed number in a percentage format.
Percent Error Formula (Table of Contents)
What is Percent Error Formula?
In Science-related matters, the concept of percentage error formula is used often wherein the variance between the experimental value and the exact value is to be determined. This calculation will help us in comparing a value that is derived from the experiment with exact or true value. The percentage error also provides information as to how close is one in their measurement or their estimation to the true or the real value.
Below is the percent Error formula:
Steps to Calculate Percent Error
The formula for Percent error one can follow the below steps:
Step 1: First one needs to obtain the experiment (assumed) value and the exact value.
Step 2: Find the variance between them and then take the absolute value that is one needs to ignore any negative sign if any. This is known as the error.
Step 3: Next, find out the absolute value of exact or true value.
4.9 (1,067 ratings)
Step 4: Divide the absolute error (non-negative) which was determined in step 2, by absolute true value or the exact value.
Step 5: Now, finally multiply the result that is obtained in step 4 by 100 so that the result is converted into percent value and then add a “%” symbol to the result.
Examples of Percent Error Formula (with Excel Template)
Let’s see some simple to advanced examples of Percent Error Formula to understand it better.
Percent Error Formula – Example #1
New tourist place statue of unity was established recently in Gujarat in India and it was estimated that around 3,00,000 people would turn around on its inauguration day. But the exact number of people that came for its inauguration was around 2,88,000. You are required to calculate the percentage error.
Below is given data for calculation of Percent Error
Therefore, calculation of the Percent Error will be as follows,
=(300000-288000)/288000*100
Percent Error will be –
Percentage Error= 4.17%
Percent Error Formula – Example #2
Avenue Supermarket a retail company operating under name “Dmart” is an expansion phase and the company plans to open new branches in new cities. At the start of the financial year, the company planned and estimated to open 24 branches, however by the end of the year the company opened only 21 stores. The company has approached you to calculate percentage error that they made during initial planning.
Below is given data for calculation of Percent Error
Therefore, calculation of the Percent Error will be as follows,
=(24-21)/21*100
Percent Error will be –
Percentage Error= 14.29%
Percent Error Formula – Example #3
As per a poll that was conducted by news channel during an election campaign where they estimated for XYZ party to win 278 seats out of 350 seats. After the results came out it turned out that XYZ party managed to win 299 seats out of 350 seats. The News channel is perplexed by the actual outcome and now wants to know what margin error they made and how much they lagged. Calculate the percentage error.
Below is given data for calculation of Percent Error
Therefore, calculation of the Percent Error will be as follows,
Percent Error will be –
Percentage Error=-7.02%
Relevance and Uses of Percent Error Formula
The percent error appears to be a simple calculation, but it is very useful as it provides us with a number which will depict our error. Further, it is used whenever it is crucial to know the amount of error which is present in the data and it is necessary to know the reason of the error, whether the reason is due to by equipment impairment or by one’s own error or mistake in the assumptions or estimations.
Recommended Articles
This has been a guide to Percent Error Formula. Here we discuss how to calculate Percent Error in excel with examples and downloadable excel template. You can learn more about financing from the following articles –
- Margin of Error Formula
- Square Root in Excel
- Integer Excel Function
- SIGN Function in Excel
- RANK Function in Excel
- 250+ Courses
- 40+ Projects
- 1000+ Hours
- Full Lifetime Access
- Certificate of Completion
