Percentage Increase Calculator
Result:
Enter values and click 'Calculate'
Understanding Percentage Increase
Percentage increase is a fundamental concept used to quantify the growth or change of a value over time or between two different points. It expresses the magnitude of this change as a proportion of the original value, represented as a percentage. Whether you're tracking business growth, analyzing financial returns, or simply comparing data points, understanding how to calculate percentage increase is incredibly useful.
What is Percentage Increase?
At its core, percentage increase tells you how much a quantity has grown relative to its starting point. If a value goes from 100 to 120, it has increased by 20. Expressing this 20 as a percentage of the original 100 gives us a 20% increase. It provides a standardized way to compare changes, regardless of the absolute size of the numbers involved.
The Formula for Percentage Increase
The calculation for percentage increase is straightforward. You need two values: an original value and a new value. The formula is as follows:
Percentage Increase = ((New Value - Original Value) / Original Value) × 100
Let's break down the components:
- New Value: The final or current value after the change.
- Original Value: The initial or starting value before the change.
- (New Value – Original Value): This calculates the absolute amount of the increase (or decrease, if the new value is smaller).
- / Original Value: Dividing by the original value expresses the change as a fraction of the starting point.
- × 100: Multiplying by 100 converts this fraction into a percentage.
Step-by-Step Example
Let's say a company's sales increased from $50,000 in Q1 to $65,000 in Q2. What is the percentage increase in sales?
- Identify the Original Value: Original Sales = $50,000
- Identify the New Value: New Sales = $65,000
- Calculate the Difference: $65,000 – $50,000 = $15,000
- Divide by the Original Value: $15,000 / $50,000 = 0.3
- Multiply by 100 to get the Percentage: 0.3 × 100 = 30%
So, the company experienced a 30% increase in sales.
When the New Value is Less Than the Original Value
It's important to note that if the new value is less than the original value, the formula will yield a negative percentage. This indicates a percentage decrease. For example, if a stock price drops from $100 to $80:
((80 - 100) / 100) × 100 = (-20 / 100) × 100 = -0.2 × 100 = -20%
This means a 20% decrease. Our calculator will automatically show "Percentage Decrease" if the result is negative.
Practical Applications
- Business & Finance: Tracking revenue growth, profit margins, stock performance, or market share.
- Economics: Measuring inflation, GDP growth, or changes in employment rates.
- Statistics & Data Analysis: Comparing data points over time, such as population growth or scientific measurements.
- Personal Finance: Monitoring investment returns or changes in expenses.
Using the calculator above, you can quickly determine the percentage increase or decrease between any two values, making data analysis and comparison much simpler.