Calculating Percentage Increase: Formula, Calculator & Examples
Master Percentage Increase | Interactive Calculator | Real-World Examples | GCSE, IGCSE, A-Level & Business Math
What is Percentage Increase?
Percentage increase is a way of expressing how much a value has grown relative to its original size. It shows the proportional growth as a percentage, making it easy to compare changes of different scales. For example, if a product's price increases from $50 to $60, the percentage increase tells us it grew by 20% of its original value.
🎯 Why Percentage Increase Matters
- Comparison across scales: Compare a $5 increase on a $50 item vs. a $50 increase on a $1,000 item
- Business & finance: Track sales growth, stock prices, revenue increases, inflation
- Personal finance: Understand salary raises, investment returns, price increases
- Statistics & data: Analyze population growth, test score improvements, metric changes
- Real-world decisions: Evaluate deals, promotions, discounts, and financial opportunities
📖 Key Concepts
Original Value: The starting amount (also called initial value, old value, or base value)
New Value: The ending amount after the increase (also called final value or current value)
Increase Amount: The absolute difference = New Value - Original Value
Percentage Increase: The relative change expressed as a percentage of the original value
Percentage Increase Formula
The percentage increase formula calculates the proportional growth between two values. It's one of the most useful formulas in math, appearing in everything from GCSE exams to business reports.
📐 Percentage Increase Formula
\[\text{Percentage Increase} = \frac{\text{New Value} - \text{Original Value}}{\text{Original Value}} \times 100\]
or in short form:
\[\%\text{ Increase} = \frac{\text{Increase}}{\text{Original}} \times 100\]
Where:
• New Value = The final amount (after increase)
• Original Value = The starting amount (before increase)
• Increase = New Value - Original Value (the difference)
• × 100 = Converts the decimal to a percentage
🔄 Alternative Formula Forms
Using Variables:
\[\%\text{ Increase} = \frac{V_{\text{new}} - V_{\text{old}}}{V_{\text{old}}} \times 100\]
Two-Step Method:
Step 1: Calculate the increase: \(\text{Increase} = \text{New} - \text{Original}\)
Step 2: Calculate percentage: \(\%\text{ Increase} = \frac{\text{Increase}}{\text{Original}} \times 100\)
⚠️ Important Notes
- Always divide by the ORIGINAL value (not the new value!) – this is the most common mistake
- The result is positive for an increase. If you get a negative result, it's actually a percentage decrease
- Percentage increase can exceed 100% – if something doubles, that's a 100% increase; triples = 200% increase
- Don't confuse with "new percentage" – if something increases by 20%, the new value is 120% of the original (100% + 20%)
🧮 Percentage Increase Calculator
Calculate Percentage Increase
Enter the original and new values to calculate the percentage increase
📊 Results:
Percentage Increase:
Absolute Increase:
How to Calculate Percentage Increase
Follow these four simple steps to calculate percentage increase accurately every time:
Identify Original and New Values
Determine which value is the starting point (original) and which is the ending point (new). The original value is always what you started with or the baseline for comparison.
Example: Price increased from $50 (original) to $75 (new)
Calculate the Increase (Difference)
Subtract the original value from the new value to find the absolute increase. This tells you how many units the value has grown.
Formula: Increase = New Value - Original Value
Example: \(75 - 50 = 25\) (increased by $25)
Divide by the Original Value
Divide the increase by the original value (never the new value!). This converts the absolute increase into a proportional increase as a decimal.
Formula: Proportion = Increase ÷ Original Value
Example: \(25 \div 50 = 0.5\)
Multiply by 100 to Get Percentage
Multiply the decimal proportion by 100 to convert it into a percentage. Add the % symbol to complete your answer.
Formula: Percentage Increase = Proportion × 100
Example: \(0.5 \times 100 = 50\%\)
Answer: The price increased by 50%
📝 All Steps in One Formula
\[\%\text{ Increase} = \frac{\text{New} - \text{Original}}{\text{Original}} \times 100\]
Worked Examples
📌 Example 1: Price Increase
Question: A laptop's price increased from $800 to $960. What is the percentage increase?
Solution:
Given: Original = $800, New = $960
Step 1: Calculate the increase:
\(\text{Increase} = 960 - 800 = 160\)
Step 2: Divide by the original value:
\(\text{Proportion} = \frac{160}{800} = 0.2\)
Step 3: Convert to percentage:
\(0.2 \times 100 = 20\%\)
Answer: The laptop price increased by 20% (or $160 in absolute terms).
📌 Example 2: Salary Raise
Question: Sarah's monthly salary increased from AED 12,000 to AED 13,800. Calculate her percentage salary increase.
Solution:
Using the formula directly:
\[\%\text{ Increase} = \frac{\text{New} - \text{Original}}{\text{Original}} \times 100\]
\[\%\text{ Increase} = \frac{13{,}800 - 12{,}000}{12{,}000} \times 100\]
\[\%\text{ Increase} = \frac{1{,}800}{12{,}000} \times 100\]
\[\%\text{ Increase} = 0.15 \times 100 = 15\%\]
Answer: Sarah received a 15% salary increase (an extra AED 1,800 per month).
📌 Example 3: Stock Price (Over 100%)
Question: A company's stock price went from $25 to $85. What is the percentage increase?
Solution:
Step 1: Increase = \(85 - 25 = 60\)
Step 2: Proportion = \(\frac{60}{25} = 2.4\)
Step 3: Percentage = \(2.4 \times 100 = 240\%\)
Answer: The stock price increased by 240%
💡 Note: This is more than a 100% increase! The stock more than tripled in value (it's now 340% of the original: 100% + 240% = 340%). Percentage increases can definitely exceed 100%.
Real-World Applications
Business & Sales
Track revenue growth, sales increases, profit margins, market share expansion, and customer base growth. Essential for business reports and performance analysis.
Personal Finance
Calculate salary raises, investment returns, savings growth, pension increases, and understand how inflation affects your purchasing power over time.
Economics & Statistics
Measure GDP growth, inflation rates, population changes, unemployment trends, and economic indicators that shape policy decisions.
Retail & Shopping
Compare price changes, understand markup percentages, evaluate if price increases are reasonable, and make informed purchasing decisions.
Education
Track academic improvement, test score increases, grade point average changes, and student enrollment growth for schools and universities.
Health & Fitness
Monitor weight changes, strength gains, endurance improvements, calorie intake adjustments, and track progress toward fitness goals.
Frequently Asked Questions
❓ What is the formula for calculating percentage increase?
The formula for percentage increase is: Percentage Increase = ((New Value - Original Value) / Original Value) × 100. In simpler terms: subtract the original value from the new value, divide by the original value, then multiply by 100 to get the percentage. For example, if a value increases from 50 to 75: \(\frac{75-50}{50} \times 100 = \frac{25}{50} \times 100 = 50\%\) increase. Always remember to divide by the original value (the starting point), not the new value.
❓ How do you calculate percentage increase between two numbers?
To calculate percentage increase between two numbers: (1) Find the difference by subtracting the smaller (original) from the larger (new) number. (2) Divide this difference by the original (smaller) number. (3) Multiply by 100 to convert to percentage. Example: From 40 to 52: Difference = 52 - 40 = 12; Proportion = 12 ÷ 40 = 0.3; Percentage = 0.3 × 100 = 30% increase. The key is always using the original/starting value as the denominator.
❓ What's the difference between percentage increase and percentage change?
Percentage increase specifically refers to when a value goes up (positive change) - the new value is greater than the original. Percentage change is the general term that includes both increases (positive) and decreases (negative). If you calculate and get a positive result, it's a percentage increase. If you get a negative result, it's a percentage decrease. The formulas are identical: \(\frac{\text{New} - \text{Original}}{\text{Original}} \times 100\), but "percentage increase" implies the answer will be positive. Some people use "percentage change" as the umbrella term for both.
❓ Can percentage increase be more than 100%?
Yes! Percentage increase can definitely exceed 100%. A 100% increase means something doubled (became twice as large). A 200% increase means it tripled (became three times as large), and so on. Example: If a stock goes from $10 to $40, the increase is \(\frac{40-10}{10} \times 100 = 300\%\) - it's now four times its original value. Think of it this way: the original value is 100% of itself. If it increases by 150%, the new value is 250% of the original (100% + 150%). There's no upper limit on percentage increase!
❓ Why do I divide by the original value, not the new value?
You divide by the original value because you want to know how much the value changed relative to where it started. The original value is your baseline (100%). If a price goes from $50 to $75, you're asking "What percentage of the original $50 did it increase by?" Answer: $25 is 50% of $50, so it's a 50% increase. If you wrongly divided by $75 (the new value), you'd get 33.3%, which doesn't represent the true growth from the starting point. The original value is always the denominator in percentage change calculations.
❓ How do I calculate percentage increase in Excel or Google Sheets?
In Excel or Google Sheets, use this formula: =((New_Value - Original_Value) / Original_Value) * 100. If your original value is in cell A1 and new value in B1, type: =(B1-A1)/A1*100. For example: A1 = 50, B1 = 75, formula gives 50 (representing 50%). You can also use: =(B1/A1-1)*100 which is mathematically equivalent. To format as percentage automatically, use =(B1-A1)/A1 and apply percentage formatting (no need to multiply by 100 when using percentage format). Both programs handle percentage calculations the same way.
❓ What if the original value is zero?
If the original value is zero, percentage increase cannot be calculated using the standard formula because division by zero is mathematically undefined. Think about it: you can't calculate "what percentage of zero" something is. In practical terms, if something goes from 0 to any positive number, it's an infinite increase or "undefined increase." This situation often appears in business when a new product line starts from nothing. Instead of percentage, report the absolute change: "increased from 0 to 100 units" rather than trying to calculate a percentage.
❓ Is a 50% increase the same as multiplying by 1.5?
Yes! A 50% increase is exactly the same as multiplying by 1.5 (or 150%). When something increases by 50%, the new value is 150% of the original, which equals 1.5 times the original. Example: $100 increased by 50% = $100 × 1.5 = $150. The general rule: to increase a value by x%, multiply by \((1 + \frac{x}{100})\). So: 20% increase = multiply by 1.2; 75% increase = multiply by 1.75; 100% increase = multiply by 2.0; 200% increase = multiply by 3.0. This shortcut is very useful for quick mental calculations!
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