Understanding the equation for percent increase is crucial in various real-life scenarios, from calculating salary raises to analyzing business growth. It allows you to quantify the relative change between two values, providing a clear picture of how much something has grown.
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Calculate Percent Increase Now! →The Percent Increase Formula
The formula to calculate percent increase is as follows:
Percentage Increase = [(Final Value - Starting Value) / |Starting Value|] × 100
Let's break down this equation for percent increase:
- Final Value: The new or ending value.
- Starting Value: The original or beginning value.
How to Calculate Percent Increase
- Subtract the starting value from the final value. This gives you the amount of the increase.
- Divide the amount of increase by the absolute value of the starting value. This gives you the increase as a decimal.
- Multiply the decimal by 100. This converts the decimal to a percentage.
If the resulting percentage is negative, it indicates a percentage decrease rather than an increase. If you need to calculate a decrease, visit our percentage decrease calculator page.
Example of Calculating Percentage Increase
Let's say a company's revenue increased from $100,000 last year to $120,000 this year. What is the percentage increase?
- $120,000 (Final Value) - $100,000 (Starting Value) = $20,000 (Increase)
- $20,000 / $100,000 = 0.2
- 0.2 × 100 = 20%
Therefore, the company's revenue increased by 20%.
Using Percentage Increase in Different Scenarios
- Finance: Tracking investment growth, calculating interest earned (see also: 1 percent interest rate calculator).
- Retail: Analyzing sales increases, determining price changes.
- Health: Monitoring weight gain or muscle growth (see also: body weight percentage calculator).
- Marketing: Measuring the increase in website traffic or lead generation.
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Our percentage calculator also handles various other percentage calculations, such as figuring out percentage of a number, or work out percentage of two numbers. Just enter your values and let our calculator do the work.