What Is the Percentage Increase Formula? With Examples

For an explanation and everyday examples of using percentages generally see our page Percentages: An Introduction. For more general percentage calculations see our page Percentage Calculators.

Percent of Change | Percent Increase and Decrease | Math with Mr. J

Why is the percent increase formula important for business?

Calculating the increase in the form of a percentage is often used in a business setting when looking at the financial changes year over year. The result represents a degree of change over a period of time. You can use the percent increase formula for any quantity that relies on a measurement over time, although one of its most common uses is in investing. You can use this formula to track the changes of a security price or market value.

The result of the percent increase formula will tell you whether the value of something is going up or going down over time. A negative value indicates a decrease in the percentage, while a positive value shows an upward trend. If you are considering investing in a company, using the percent increase formula can help you determine how the value has changed over a set period of time. You can use the formula to calculate the percent increase in value over five years or even since the company first began.

Applying this formula will determine how the value of a company has changed, often based on its stock prices. A business balance sheet will often include comparative financial statements that indicate the prices of certain assets at various points in time, as well as the percent of increase or decrease of each asset over that period of time.

What is the percent increase formula?

The percent increase formula is:

New number (value) – original number (value) = increase

Increase / original number (value) x 100 = percent increase

A percent increase refers to how much a percentage has gone up over time. In order to reach this number, you would need to find the difference between the original value and the final value, subtracting to find the exact total of the decrease. When you find that number, you need to calculate the percentage of change, as simply knowing the amount of the decrease may not provide you with the information you need to determine the scale of the change between the two numbers.

You might apply the percent increase formula to determine how a price of a particular product or item has changed in the last year or during another period of time.

How to calculate percent increase formula

Calculating the percent increase formula involves applying the numbers into the basic formula outlined above. Follow these steps and plug in your own numbers to calculate the percent increase.

Examples of percent increase formula

Many industries rely on the percent increase formula to determine the change in a value over time. These examples indicate its usage in various applications.

Example 1

Robert worked 95 hours at his part-time job during the month of January. In February, demand increased and he worked 110 hours. To calculate the percent increase in his working hours between January and February, you would begin by deducting the original value from the new value, or 95 from 110, to get the increase of 15.

15 / 95 x 100 = 15.8% increase in working hours from January to February

The company Robert works for slowed down in March, resulting in a cutback in his hours. He worked 75 hours in March and is looking at the percent decrease in hours worked between February and March. To calculate this number, you would deduct the original value of 110 from 75, to get the decrease of

-35 / 110 x 100 = -31.8% decrease in hours worked from February to March

Example 2

A box of candy contains 144 pieces of candy, and a store sold 44 of those pieces of candy in one day. The percent decrease of the box of candy is 30.5%.

-100 (difference) / 144 (original value) x 100 = -30.5%

Example 3

The value of a share of Apple stock was $110 in 2017 and $240 in 2020. In order to calculate the percent increase of a single stock share, you would begin by calculating the difference between the original value and the new value, or 130.

130 (difference) / 110 (original value) x 100 = 2000% increase in stock share price

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