1. What is an Index Calculator?

Definition: This calculator computes an index value that shows how a current value compares to a base value, expressed as a percentage.

Purpose: It helps in financial analysis, economic indicators, performance measurement, and various comparative studies.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Index} \) — Resulting index value (percentage)
• \( \text{Current} \) — Current value being measured
• \( \text{Base} \) — Reference base value for comparison

Explanation: The current value is divided by the base value, then multiplied by 100 to convert it to a percentage.

3. Importance of Index Calculation

Details: Index calculations are fundamental in economics, finance, business analytics, and scientific research to track changes over time.

4. Using the Calculator

Tips: Enter the current value and base value. Both values must be positive numbers greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What does an index value of 100 mean?
A: An index of 100 means the current value is exactly equal to the base value (no change).

Q2: What if my index is above 100?
A: Values above 100 indicate the current value is higher than the base value.

Q3: What if my index is below 100?
A: Values below 100 indicate the current value is lower than the base value.

Q4: Can I use this for price index calculations?
A: Yes, this is the basic formula for simple price index calculations.

Q5: How do I interpret an index of 125?
A: An index of 125 means the current value is 25% higher than the base value.