Percent Increase and Decrease Formula

April 24, 2025 4 min read

Understanding how to calculate percent increase and decrease is a valuable skill in many areas of life, from finance and investing to everyday shopping and understanding statistics. It allows you to quantify change, track progress, and make informed decisions.

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In this article, we'll break down the percent increase and decrease formula, providing clear explanations and examples. Plus, we'll show you how our intuitive percentage calculator can simplify these calculations for you!

The Basic Formulas

The core concepts are pretty simple. The formulas help you express the change between two numbers as a percentage of the original number.

Percent Increase Formula

Use this when something is increasing.

% Increase = (New Value - Original Value) / Original Value * 100

Percent Decrease Formula

Use this when something is decreasing.

% Decrease = (Original Value - New Value) / Original Value * 100

Steps to Calculate Percent Increase or Decrease

  1. Identify the Original and New Values: Determine which value is the starting point (original) and which is the ending point (new).
  2. Calculate the Difference: Subtract the original value from the new value. The order matters! For increase, it's New - Original. For decrease, it's Original - New.
  3. Divide by the Original Value: Divide the difference you calculated by the original value. This gives you the change as a decimal.
  4. Multiply by 100: Multiply the decimal by 100 to express the change as a percentage.

Examples to Illustrate the Formulas

Example 1: Calculating Percent Increase

Suppose the price of gas increased from $3.00 to $3.75. What is the percent increase?

  1. Original Value = $3.00
  2. New Value = $3.75
  3. Difference = $3.75 - $3.00 = $0.75
  4. $0.75 / $3.00 = 0.25
  5. 0.25 * 100 = 25%

Therefore, the price of gas increased by 25%.

Example 2: Calculating Percent Decrease

A store is having a sale, and an item originally priced at $50 is now selling for $40. What is the percent decrease?

  1. Original Value = $50
  2. New Value = $40
  3. Difference = $50 - $40 = $10
  4. $10 / $50 = 0.20
  5. 0.20 * 100 = 20%

Therefore, the item is discounted by 20%.

Why Use a Percentage Calculator?

While the formulas are straightforward, manually calculating percentages can be prone to errors and time-consuming, especially when dealing with complex numbers. Our percentage calculator eliminates these issues. Simply enter the original and new values, and the calculator instantly provides the percent increase or decrease.

Real-World Applications

  • Finance: Calculate investment returns, track portfolio performance, or analyze changes in stock prices.
  • Retail: Determine discount percentages, compare prices, and assess sales growth. See also: 30 percent off calculator, 40 percent off calculator, 75 percent off calculator.
  • Statistics: Measure changes in data, analyze trends, and compare different datasets.
  • Everyday Life: Calculate tips, understand price changes, or track personal goals.

Beyond Percent Increase and Decrease

Our website offers a variety of other percentage tools to meet all your calculation needs. You can easily find what percent of a number is (like what is 15% of 200), or figure out what percentage one number is of another (like 30 is what percent of 150).

Simplify Your Calculations Today!

Stop struggling with manual calculations and let our percentage calculator do the work for you. It's fast, accurate, and easy to use on any device. Whether you're a student, a professional, or just need to solve a quick math problem, our tool is here to help.