Calculating the percentage increase between two numbers is essential in various aspects of life, from determining growth in business to measuring personal growth. It helps you to understand how a value has changed over time or to compare changes in different sets of numbers. In this article, we’ll walk you through the process of calculating the percentage increase between two numbers using a simple formula.

Understanding the Terms

To calculate the percentage increase, you need to understand its components, such as:

1. Initial value: This is the initial or starting number, often referred to as the “old” or “original” value.

2. Final value: This is the number after the change, commonly called the “new” value.

3. Difference: This is the amount of change between the initial and final values.

4. Percentage increase: The ratio of the difference to the initial value, expressed as a percentage.

The Formula

The formula for calculating percentage increase is:

Percentage Increase = (Difference / Initial Value) * 100

Step-by-Step Guide on How to Calculate Percentage Increase

Step 1: Identify Initial and Final Values

Determine the initial and final values in your calculation. The initial value may be a price before a discount, while the final value may be a price after applying the discount.

Example:

Initial value = 100

Final value = 150

Step 2: Find the Difference

Subtract the initial value from the final value. This will yield the absolute difference between these numbers.

Example:

Difference = Final Value – Initial Value

Difference = 150 – 100

Difference = 50

Step 3: Calculate Percentage Increase

Divide the absolute difference by the initial value and then multiply by 100 to express it as a percentage.

Example:

Percentage Increase = (Difference / Initial Value) * 100

Percentage Increase = (50 / 100) * 100

Percentage Increase = (0.5) * 100

Percentage Increase = 50%

In this example, there is a 50% increase between the initial and final values.

Note: The calculated percentage will always be positive since you are determining the percentage increase. However, if the final value is lower than the initial value, it means a percentage decrease has taken place.

Conclusion

Calculating the percentage increase between two numbers is a crucial skill in everyday life and various fields like finance and data analysis. By following these simple steps and using the formula provided, you can easily determine the changes and growth occurring in different aspects of your life or business.