How to Calculate Percentage Increase and Decrease With Examples

To calculate percentage increase or decrease, compare the change between two values with the original value. The basic formula is:

\text{Percentage change} = \frac{\text{New value} - \text{Original value}}{\text{Original value}} \times 100

A positive result is a percentage increase. A negative result is a percentage decrease.

Percentage Increase Formula

Use this formula when the new value is higher than the original value:

\text{Percentage increase} = \frac{\text{New value} - \text{Original value}}{\text{Original value}} \times 100

Example: Price increase

A product’s price rises from $40 to $50.

\frac{50 - 40}{40} \times 100 = \frac{10}{40} \times 100 = 25\%

The price increased by 25%.

Example: Salary increase

A monthly salary rises from $2,500 to $2,750.

\frac{2,750 - 2,500}{2,500} \times 100 = \frac{250}{2,500} \times 100 = 10\%

The salary increased by 10%.

Percentage Decrease Formula

Use this formula when the new value is lower than the original value:

\text{Percentage decrease} = \frac{\text{Original value} - \text{New value}}{\text{Original value}} \times 100

Example: Price reduction

A jacket’s price falls from $80 to $60.

\frac{80 - 60}{80} \times 100 = \frac{20}{80} \times 100 = 25\%

The price decreased by 25%.

Example: Website traffic drop

Monthly visits fall from 8,000 to 6,000.

\frac{8,000 - 6,000}{8,000} \times 100 = \frac{2,000}{8,000} \times 100 = 25\%

Traffic decreased by 25%.

Calculate Percentage Change in Excel or Google Sheets

Use a simple formula to calculate percentage change automatically.

If the original value is in cell A2 and the new value is in cell B2, enter:

=(B2-A2)/A2

Then format the result as a percentage.

Original value New value Formula result Percentage change
40 50 0.25 25% increase
80 60 -0.25 25% decrease
2,500 2,750 0.10 10% increase
8,000 6,000 -0.25 25% decrease

The formula produces a negative number for a decrease. Format the cell as a percentage, or multiply the result by 100 if you want to display it as a plain number.

Find the New Value After a Percentage Change

Sometimes you know the original value and the percentage change, but need the new value.

Increase formula

\text{New value} = \text{Original value} \times \left(1 + \frac{\text{Percentage increase}}{100}\right)

Example: A $200 item increases by 15%.

200 \times 1.15 = 230

The new price is $230.

Decrease formula

\text{New value} = \text{Original value} \times \left(1 - \frac{\text{Percentage decrease}}{100}\right)

Example: A $200 item is discounted by 15%.

200 \times 0.85 = 170

The discounted price is $170.

Find the Original Value After a Percentage Change

If you know the new value and the percentage change, work backward.

After an increase

\text{Original value} = \frac{\text{New value}}{1 + \frac{\text{Percentage increase}}{100}}

Example: A price after a 20% increase is $240.

\frac{240}{1.20} = 200

The original price was $200.

After a decrease

\text{Original value} = \frac{\text{New value}}{1 - \frac{\text{Percentage decrease}}{100}}

Example: A price after a 20% discount is $160.

\frac{160}{0.80} = 200

The original price was $200.

Common Mistakes to Avoid

Using the new value as the base

Always divide by the original value, not the new value.

If a price rises from $50 to $75:

\frac{75 - 50}{50} \times 100 = 50\%

Using $75 as the base would give the wrong result:

\frac{75 - 50}{75} \times 100 = 33.3\%

The correct percentage increase is 50%.

Treating an increase and decrease as reversible

A 25% increase followed by a 25% decrease does not return to the starting value.

Starting with $100:

  • A 25% increase: 100 \times 1.25 = 125
  • A 25% decrease: 125 \times 0.75 = 93.75

The final value is $93.75, not $100.

Confusing percentage points with percentages

If an interest rate rises from 4% to 6%, it increased by 2 percentage points. In relative terms, it increased by:

\frac{6 - 4}{4} \times 100 = 50\%

Both statements can be correct, but they describe different things.

Comparing values with different time periods

A 10% monthly increase and a 10% yearly increase are not directly comparable. Always check whether the values cover the same period before drawing conclusions.

Real-World Examples

Sales performance

A store sells 320 units in January and 400 units in February.

\frac{400 - 320}{320} \times 100 = 25\%

Sales increased by 25%.

Weight change

A person’s weight changes from 90 kg to 81 kg.

\frac{90 - 81}{90} \times 100 = 10\%

The weight decreased by 10%.

Investment value

An investment grows from $1,200 to $1,500.

\frac{1,500 - 1,200}{1,200} \times 100 = 25\%

The investment increased by 25%.

Quick Reference

Task Formula
Percentage increase \frac{\text{New} - \text{Original}}{\text{Original}} \times 100
Percentage decrease \frac{\text{Original} - \text{New}}{\text{Original}} \times 100
New value after increase \text{Original} \times (1 + \text{rate})
New value after decrease \text{Original} \times (1 - \text{rate})
Original value after increase \frac{\text{New}}{1 + \text{rate}}
Original value after decrease \frac{\text{New}}{1 - \text{rate}}

Always identify the original value first, calculate the difference, divide by the original value, and multiply by 100. A positive result means an increase; a negative result means a decrease.

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