Formula to Determine Percentage Increase

What is Percentage Increase?

Percentage increase represents the extent to which a quantity has grown relative to its initial value. It's the difference between the new and original values, divided by the original value, expressed as a percentage. A positive percentage indicates growth, while a negative percentage signifies a decrease (which is sometimes called a percentage decrease). You can also use our tool to /blog/calculate-decrease-percentage.

The Formula to Determine Percentage Increase

The formula to determine percentage increase is as follows:

Percentage Increase = [(New Value - Original Value) / Original Value] x 100

Let's break down each component:

• New Value: The value you are comparing against the original value.
• Original Value: The starting value or the base you are comparing to.
• Percentage Increase: The result of the calculation, expressed as a percentage.

Steps to Calculate Percentage Increase

1. Find the Difference: Subtract the original value from the new value.
2. Divide by the Original Value: Divide the difference obtained in step 1 by the original value.
3. Multiply by 100: Multiply the result from step 2 by 100 to express it as a percentage.

Examples of Calculating Percentage Increase

Let's illustrate this with some examples:

Example 1: Investment Growth

An investment portfolio was initially valued at $10,000. After one year, its value increased to $12,000. What is the percentage increase?

1. Difference: $12,000 - $10,000 = $2,000
2. Divide by Original Value: $2,000 / $10,000 = 0.2
3. Multiply by 100: 0.2 x 100 = 20%

Therefore, the investment portfolio experienced a 20% increase in value.

Example 2: Sales Growth

A store's monthly sales went from 500 units to 650 units. Calculate the percentage increase.

1. Difference: 650 - 500 = 150
2. Divide by Original Value: 150 / 500 = 0.3
3. Multiply by 100: 0.3 x 100 = 30%

The store experienced a 30% increase in sales.

Using Our Percentage Calculator

While the formula to determine percentage increase is straightforward, manually calculating it can be time-consuming and prone to errors. Our percentage calculator simplifies this process. Just enter the original and new values, and the calculator will instantly display the percentage increase /blog/calculate-percentage-increase or decrease. It's a quick and efficient way to solve your percentage problems, whether you're on your phone or computer.

Why is Percentage Increase Important?

• Tracking Growth: Vital for businesses to monitor sales, revenue, and profit growth.
• Investment Analysis: Helps investors evaluate the performance of their investments.
• Personal Finance: Useful for tracking savings, debt reduction, or changes in expenses.
• Performance Measurement: Used to assess improvements or declines in various metrics. For instance, if you want to track weight loss, you can use this /blog/5-percent-weight-loss-calculator.

Percentage Increase vs. Percentage Decrease

It's important to distinguish between percentage increase and percentage decrease. While the formula structure is similar, the context differs.

• Percentage Increase: Indicates growth or upward change.
• Percentage Decrease: Indicates a decline or downward change.

If the "New Value" is less than the "Original Value," the formula will yield a negative percentage, indicating a decrease. You can also determine the percentage a number went down by using our /blog/calculate-percentage-reduction calculator.

Beyond the Basics

Once you grasp the formula to determine percentage increase, you can explore related concepts like /blog/annual-percentage-yield-calculator or /blog/annual-percentage-increase-calculator to further enhance your understanding of percentage calculations and their applications.

Remember, understanding percentages empowers you to analyze data, track progress, and make informed decisions in various areas of life.