How to Calculate a 5 Percent Increase

April 24, 2025 3 min read

Understanding how to calculate percentage increases is a valuable skill, applicable in various scenarios, from figuring out sales growth to understanding salary adjustments. This article will focus specifically on how to calculate a 5 percent increase, providing you with clear steps and practical examples.

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The Basic Formula

The fundamental principle behind calculating a percentage increase involves determining the difference between the new value and the original value, dividing that difference by the original value, and then multiplying by 100 to express it as a percentage. Here's the formula:

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

Calculating a 5 Percent Increase: Step-by-Step

Let's break down the process of calculating a 5 percent increase with a specific example. Suppose you want to increase the number 200 by 5 percent.

  1. Determine the Original Value: In this case, the original value is 200.
  2. Calculate 5% of the Original Value: To find 5% of 200, multiply 200 by 0.05 (5/100).
    5% of 200 = 200 * 0.05 = 10
  3. Add the Increase to the Original Value: Add the calculated increase (10) to the original value (200).
    New Value = 200 + 10 = 210

Therefore, a 5 percent increase of 200 is 210.

A Simpler Method

Alternatively, you can use a slightly shorter method:

  1. Multiply the original value by 1.05 (1 + 0.05). This directly calculates the increased value.
    New Value = 200 * 1.05 = 210

This method combines steps 2 and 3 into one calculation.

Real-World Applications

  • Salary Increase: If your current salary is $50,000 and you receive a 5% raise, the increase is $50,000 * 0.05 = $2,500. Your new salary would be $52,500.
  • Sales Growth: If your company's sales were $100,000 last month and increased by 5% this month, the sales increase is $100,000 * 0.05 = $5,000. Total sales for this month are $105,000.
  • Price Increase: If an item originally priced at $40 increases by 5%, the price increase is $40 * 0.05 = $2. The new price is $42.

Using Percentage Increase for Other Calculations

The percentage increase calculation can be used for more than just increases. It can be adapted to find /blog/calculate-percent-decrease, /blog/determine-percentage, or even the original value before an increase by rearranging the basic formula. Our website offers various calculators that allow you to easily perform these related calculations, such as finding /blog/calculate-percentage-of-a-number or /blog/work-out-discount-percentage.

Quick and Easy Calculations with Our Tool

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