How to calculate percentages in excel with formulas

In today’s data-driven world, Excel is an indispensable tool for organizing and analyzing information. One of the most common calculations done in Excel is determining percentages. In this article, we will walk through several methods to calculate percentages using formulas in Excel.
1.Basic Percentage Calculation
The basic percentage formula is: `=(part/total) * 100`. The part represents a specific value, whereas the total represents the sum of all values. Let’s assume you want to calculate the percentage of sales made by an employee in a month. If the employee sold 120 items out of a total of 800 items, you would input the following formula in Excel:
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=(120/800) * 100
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After pressing Enter, you will find that the employee has made 15% of total sales.
2.Percentage Increase or Decrease
To calculate the percentage increase or decrease between two numbers, use this formula: `=((new_value – old_value)/old_value) * 100`.
For example, if you want to determine the growth of sales over two months, comparing March’s sales ($15,000) to February’s sales ($10,000), input this formula:
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=((15000-10000)/10000) * 100
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After pressing Enter, you’ll see that there was a 50% increase in sales.
3.Calculating Percentages of Total Values
If you want to determine each item’s share as a percentage of the total value, use the same basic percentage calculation mentioned earlier. Suppose you have three categories: A ($200), B ($300), and C ($500). First, find their sum using the SUM function:
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=SUM(A1:C1)
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Next, use this formula for each item:
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=(A1/SUM(A1:C1)) * 100
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As a result, you’ll find that A represents 20%, B is 30%, and C makes up 50% of the total values.
4.Formatting Cells as Percentages
After calculating percentage values, instead of displaying them as decimals, format cells to show the ‘%’ symbol. Select the cell(s) you want to format and either right-click and choose ‘Format Cells’ or use the Excel toolbar’s ‘Home’ tab. Click the dropdown box labeled ‘Number Format’ and select ‘Percentage.’ The decimal values in the selected cells will now display as percentages.
In conclusion, knowing how to calculate percentages in Excel using formulas is essential for analyzing data effectively. Practice using these methods, and soon you’ll be able to perform calculations with ease, aiding your decision-making process and enhancing your understanding of the data at hand.