How to calculate percent increase between two numbers

Percent increase is a valuable tool when trying to gain insight into how much something has grown or improved over time. Being able to accurately calculate the percentage of growth between two numbers can be helpful in various fields, such as finance, business management, and personal growth assessment. It’s crucial to understand the process and the steps involved in calculating percent increases between two numbers. This article will walk you through a step-by-step guide on how to do so.
Step 1: Identify the initial and final values
To start, you’ll need two values – an initial value (the starting point) and a final value (the ending point). For example, let’s say you want to calculate the percent increase in sales revenue from last year to this year. The initial value is last year’s sales revenue, and the final value is this year’s sales revenue.
Step 2: Find the difference between the two values
Next, subtract the initial value from the final value to determine the difference between these two numbers. This difference indicates how much your chosen variable has changed over time.
Continuing with our sales revenue example:
Final Value (this year’s sales revenue) – Initial Value (last year’s sales revenue) = Difference
Step 3: Divide the difference by the initial value
Now, we’ll figure out what percentage that difference represents compared to our starting point. To do this, simply divide the difference obtained in Step 2 by the initial value.
Percent Increase = (Difference / Initial Value)
Step 4: Multiply by 100% to get a percentage
To express your result as a percentage, multiply your calculated quotient from Step 3 by 100%.
Percent Increase (%) = (Difference / Initial Value) * 100%
Step 5: Interpret your result
Finally, analyze your results and integrate them into your decision-making process. In our example of sales revenue, the percentage increase reflects how much your sales revenue has grown since last year. This information could help in future planning and strategy development.
In conclusion, calculating percent increase between two numbers is a valuable skill that can be applied in various situations. By understanding the steps involved and practicing with real-world examples, you can become proficient at determining percent increases with confidence.