How to calculate percentage gained
In many situations, you may need to calculate the percentage gained or lost in a given situation – be it your investments, student grades, or even discount rates. Understanding the concept of percentage and how to calculate it is crucial for effective communication and decision-making. In this article, we will break down the steps and methods for calculating the percentage gained.
Understanding Percentage:
A percentage is a fraction of a value expressed in 100 parts. It is denoted by the symbol ‘%’. For instance, if you score 85 out of 100 in a test, your percentage score would be 85%.
Calculating Percentage Gained:
Calculating percentage gained involves the following simple steps:
1. Identify the initial value (starting point): This is the original amount or initial value before any changes are made.
2. Identify the final value (ending point): This is the new amount or final value after changes have occurred.
3. Find the difference between these two values: Subtract the initial value from the final value to find the gain in absolute terms.
Difference = Final Value – Initial Value
4. Divide this difference by the initial value: To convert this absolute gain into a percentage, we need to consider its relation to the initial value. Hence, we divide this difference by the initial value.
Percentage Gain = Difference / Initial Value
5. Multiply by 100: The resulting number is then multiplied by 100 to express it as a percentage.
Percentage Gain = (Difference / Initial Value) x 100
For instance, let’s say you had an investment of $1,000 (initial value), and after a certain period, its worth increased to $1,200 (final value). Here’s how we would calculate the percentage gain:
1. Initial Value: $1,000
2. Final Value: $1,200
3. Difference: $1,200 – $1,000 = $200
4. Percentage Gain: $200 / $1,000 = 0.2
5. Multiply by 100: 0.2 x 100 = 20%
Thus, your investment has gained a 20% return.
Conclusion:
Knowing how to calculate percentage gained is a valuable skill when analyzing various aspects of our personal and professional lives—from investments and grades to retail discounts and more. By following this straightforward process, you can easily evaluate the increase or decrease in any value relative to its initial point, providing valuable insight for decision-making and evaluation purposes.