Understanding percentage increase is a valuable skill applicable in various real-world scenarios, from tracking investment growth to analyzing sales figures. It allows you to quantify changes and make informed decisions based on data.
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Calculate Percentage Increase Quickly →The Percentage Increase Formula
The percentage increase represents the extent to which a quantity has grown. It's calculated using a straightforward formula:
Percentage Increase = [(New Value - Original Value) / Original Value] x 100
Let's break down each component:
- New Value: The value you're comparing to the original.
- Original Value: The starting value.
Step-by-Step Calculation
- Find the Difference: Subtract the original value from the new value. This tells you the amount of the increase.
- Divide by the Original Value: Divide the result from step 1 by the original value. This gives you the increase as a decimal.
- Multiply by 100: Multiply the decimal by 100 to express the increase as a percentage.
Examples of Percentage Increase
Example 1: Tracking Stock Growth
Suppose you bought a stock for $50, and now it's worth $75. What's the percentage increase?
Using the formula: [(75 - 50) / 50] x 100 = 50%. The stock's value increased by 50%.
Example 2: Analyzing Sales Performance
A store's sales were $10,000 last month and $12,000 this month. What's the percentage increase in sales?
Applying the formula: [(12,000 - 10,000) / 10,000] x 100 = 20%. Sales have increased by 20%.
Example 3: Calculating Salary Raise
An employee's salary increased from $40,000 to $44,000. What is the percentage increase?
Using the formula: [(44,000 - 40,000) / 40,000] x 100 = 10%. The employee received a 10% raise.
When the Result is Negative
If the "new value" is less than the "original value", the result of the percentage increase calculation will be a negative number. This indicates a percentage decrease rather than an increase. For example, if a product's price dropped from $25 to $20, the percentage change would be [(20-25)/25]*100 = -20%, meaning a 20% decrease.
Simplify Calculations with Our Tool
Manually calculating percentage increase is a simple process, but can be prone to errors. Our percentage calculator tool removes the potential for human error. Plus, it's quick and easy! You can also find what percent of a number is (like what is 15% of 200), figure out what percentage one number is of another (like 30 is what percent of 150), or calculate how much something increased or decreased in percentage terms (like going from 80 to 100). Just type your numbers into the boxes, hit calculate, and you'll get your answer right away. It works great on your phone or computer, so you can quickly solve percentage problems whenever you need to.