Introduction

In many aspects of daily life, calculating a percent increase can prove to be an essential skill. Whether it’s determining increased costs, growth percentages in business, or evaluating investment performance, knowing how to calculate a percent increase is fundamental. In this article, we will walk you through the process of calculating a percent increase step by step.

Step 1: The Difference Between Two Values

To calculate the percent increase, first, you must identify the original value (the old value) and the final value (the new value). The next step is to find the difference between these two values. You can do this by subtracting the old value from the new value.

Difference = New Value – Old Value

Step 2: Calculate the Percentage Increase

Now that you have found the difference between the two values, it’s time to calculate the percentage increase. To do this, divide the difference by the old value.

Percentage Increase = (Difference / Old Value)

Step 3: Convert Decimals to Percentages

After dividing the difference by the old value in step 2, you might get a decimal as your result. To express your answer as a percentage, multiply this decimal by 100.

Percent Increase = (Percentage Increase × 100)

Now that you have calculated your percent increase let’s illustrate with an example.

Example:

Consider an investment that has grown in value from $1,000 to $1,500. Let’s calculate its percent increase using our three-step method:

Step 1: Difference = New Value – Old Value

Difference = $1,500 – $1,000

Difference = $500

Step 2: Percentage Increase = (Difference / Old Value)

Percentage Increase = ($500 / $1000)

Step 3: Convert Decimals to Percentages

Percent Increase = (0.5 × 100)

Percent Increase = 50%

The investment has increased by 50%.

Conclusion

Calculating a percent increase is a simple mathematical process that can be applied in various instances of personal and professional life. By following this three-step process – finding the difference between two values, calculating the percentage increase, and converting the decimal to a percentage – you’ll be equipped with a valuable skill that allows you to quickly evaluate changes and growth in different areas.