Introduction:

Whether it’s measuring an increase in sales, changes in market value or charting progress on a project, calculating an increase is a vital skill in many aspects of life. In this article, we will explore various methods for calculating increases and provide step-by-step instructions to help you better understand and apply these techniques.

Method 1: Calculating Percent Increase

Step 1: Identify the original and new values

To calculate the percent increase, you need to have two numbers: the original value and the new value. For example, let’s say we want to find the percent increase in sales from last month to this month. The original value represents sales from last month, while the new value is sales from this month.

Step 2: Subtract the original value from the new value

Once you have your values, subtract the original value from the new value:

Increase = New Value – Original Value

This gives you the net increase in numerical terms.

Step 3: Divide the net increase by the original value

Next, take that net increase and divide it by the original value:

Percent Increase = (Net Increase / Original Value)

This calculation provides you with the raw decimal number representing the percentage increase.

Step 4: Convert decimal to percentage

Finally, multiply that decimal number by 100 to convert it into a percentage:

Percentage = Decimal Number x 100

Method 2: Calculating Simple Increases

Sometimes calculating a simple numeric increase is more suitable. To calculate a simple increase, follow these steps:

Step 1: Gather your data

Analyze your data by identifying what figures you want to compare. If possible, organize them in chronological order.

Step 2: Subtract values

Similar to calculating percent increases, subtract the older figure from the newer figure:

Numeric Increase = New Value – Old Value

This will give you the numeric increase between both values.

Method 3: Using an Indexed Growth Rate

An indexed growth rate is useful when comparing changes that happened over a period or different scenarios. Follow these steps to produce an indexed growth rate:

Step 1: Determine the base period

Choose a reference point in time as your base period. This point serves as the benchmark for all subsequent periods.

Step 2: Calculate the increases

For each subsequent point in time, calculate the numeric increase compared to the base period using one of the methods above.

Step 3: Create an index

Divide each calculated increase by the corresponding base value and multiply by 100. This will convert your numeric increases into indexed figures.

You now know how to calculate numeric increases, percent increases and indexed growth rates. Each method has its advantages depending on the situation, so it’s essential to choose the right calculation based on your needs. With these tools under your belt, you’ll be able to track growth more effectively and make better-informed decisions.