How to Calculate Percentage Increase

Calculating percentage increase is a useful skill to have in many different situations. Whether you need to figure out how much a price has gone up, how much your salary has increased or how much your investments have grown, understanding the basic principles of percentage increase can help you to make more informed decisions. In this article, we will take a look at what percentage increase is, how to calculate it and some practical examples to help you get started.

What is Percentage Increase?

Percentage increase is a way of expressing how much a quantity has changed in relation to its original value. It is calculated by taking the difference between the new value and the old value, dividing by the old value, and then multiplying by 100. The resulting number is a percentage that represents the increase (or decrease) between the two values.

Percentage Increase FormulaSource: bing.com

The formula for calculating percentage increase can be written as:

Percentage Increase = ((New Value – Old Value) / Old Value) x 100

How to Calculate Percentage Increase

Let’s take a look at an example to see how this formula works in practice.

Suppose you buy a stock for $100 and then sell it a few months later for $150. To calculate the percentage increase, you would use the following formula:

Percentage Increase = ((150 – 100) / 100) x 100 = 50%

This means that the stock increased in value by 50% over the period of time that you held it.

Another Example

Here’s another example to help illustrate the concept of percentage increase:

Suppose you are a salesperson who sells $10,000 worth of products in one month, and then the following month you sell $12,000 worth of products. To calculate the percentage increase, you would use the following formula:

Percentage Increase = ((12,000 – 10,000) / 10,000) x 100 = 20%

This means that your sales increased by 20% from one month to the next.

Using Percentage Increase in Real Life

Understanding how to calculate percentage increase can be useful in many different situations. For example, if you are trying to negotiate a raise at work, you can use percentage increase to help you determine what a fair increase would be based on your current salary. Or, if you are considering investing in a particular stock or mutual fund, you can use percentage increase to help you evaluate its performance over time.

Conclusion

Calculating percentage increase is a simple but powerful tool that can help you make more informed decisions in many different areas of your life. By understanding the basic principles of percentage increase and how to calculate it, you can gain a deeper understanding of the changes that are happening around you and make more informed choices as a result.

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