The formula for relative error is defined as the absolute error divided by the true value. More specifically, relative error is a number that compares how incorrect a quantity is from a number that is considered to be true.
Because of the formula, relative error is expressed as a percentage after multiplying the value by 100. These types of formulas are very important to workers, such as accountants, who have to keep track of a company's financial records. Relative error is often taught in algebra and has a formula similar to many others. Relative error is often referred to as percentage error.