Percentage increase is a crucial concept in various fields, such as finance, business, and even everyday situations. Understanding how to calculate percentage increase is essential for managing personal investments or evaluating a company’s performance. This article will provide you with a comprehensive guide on how to calculate percentage increase using simple, clear steps.

Step-by-Step Guide on Calculating Percentage Increase:

Step 1: Identify the Initial Value and Final Value

Before finding the percentage increase, you need to identify the initial value (the original quantity) and the final value (the increased quantity). These values could be prices, quantities, population numbers as examples.

Step 2: Find the Difference

Next, you need to find the difference between the final value and the initial value. You can do this by subtracting the initial value from the final value:

Difference = Final Value – Initial Value

Step 3: Divide the Difference by the Initial Value

Now, divide the difference calculated in Step 2 by the initial value:

Percentage Increase (as a decimal) = Difference / Initial Value

Step 4: Convert Decimal to Percentage

To get the percentage increase, multiply the decimal result obtained from Step 3 by 100:

Percentage Increase = (Percentage Increase as a decimal) x 100

Examples of Calculating Percentage Increase

Let’s go through a couple of examples to illustrate how to use these four steps:

Example 1:

Suppose you bought a stock for $150 initially and later sold it for $180.

Initial Value = $150

Final Value = $180

Difference = $180 – $150 = $30

Percentage Increase (as a decimal) = $30 / $150 = 0.2

Percentage Increase = 0.2 x 100 = 20%

Therefore, your stock experienced a price increase of 20%.

Example 2:

Imagine the population of a town increased from 10,000 in 1990 to 12,500 in 2010.

Initial Value = 10,000

Final Value = 12,500

Difference = 12,500 – 10,000 = 2,500

Percentage Increase (as a decimal) = 2,500 / 10,000 = 0.25

Percentage Increase = 0.25 x 100 = 25%

The population of the town increased by 25% from 1990 to 2010.

Conclusion

Calculating percentage increase is a valuable skill for both personal and professional applications. By following the four-step process described in this article, you can easily and accurately calculate percentage increases for a wide range of situations. Keep practicing and applying this knowledge to enhance your understanding and efficiency in calculating percentage increases.