Basic Percentage Calculation
A percentage represents a portion of 100. To calculate a percentage, you divide the part by the whole and multiply by 100. This fundamental concept is used in countless real-world applications, from calculating grades to determining sales tax.
(Part ÷ Whole) × 100 = Percentage
Example
If you scored 85 out of 100 on a test, your percentage is: (85 ÷ 100) × 100 = 85%
Calculating Percentage Increase
A percentage increase shows how much a value has grown relative to its original amount. This calculation is essential for understanding price changes, salary raises, population growth, and investment returns.
New Value = Original × (1 + Percentage/100)
Example
A $50 item with a 20% price increase: $50 × (1 + 20/100) = $50 × 1.20 = $60
Calculating Percentage Decrease
A percentage decrease represents how much a value has reduced from its original amount. This is commonly used for discounts, depreciation, weight loss calculations, and analyzing declining trends.
New Value = Original × (1 - Percentage/100)
Example
A $80 item with a 25% discount: $80 × (1 - 25/100) = $80 × 0.75 = $60
Finding Percentage Change
Percentage change measures the relative difference between two values. It's crucial for comparing data over time, analyzing growth rates, and understanding the magnitude of changes in various contexts.
((New - Old) ÷ Old) × 100 = % Change
Example
Stock price changed from $40 to $50: ((50 - 40) ÷ 40) × 100 = 25% increase
Compound Percentage Calculations
When dealing with multiple percentage changes, you cannot simply add or subtract them. Each percentage change is applied to the result of the previous calculation, creating a compound effect.
Final = Initial × (1 + %1/100) × (1 + %2/100) × ...
Example
A $100 investment grows 10% in year 1 and 15% in year 2: $100 × 1.10 × 1.15 = $126.50
Reverse Percentage Calculations
Sometimes you need to work backwards from a final value to find the original amount before a percentage was applied. This is common in tax calculations and discount analysis.
Original = Final ÷ (1 + Percentage/100)
Example
If a price including 20% tax is $120, the original price is: $120 ÷ 1.20 = $100