Calculating Percentage Increase
Percentage increase shows how much a value has grown relative to its original amount. It's commonly used in business, finance, and economics to track growth.
Formula
Percentage Increase = ((New Value - Original Value) / Original Value) x 100
Step-by-Step Calculation
- Subtract the original value from the new value
- Divide the result by the original value
- Multiply by 100 to get the percentage
Examples
Example 1: Salary increase from $40,000 to $45,000
Increase = ((45,000 - 40,000) / 40,000) x 100 = 12.5%
Example 2: Population grew from 1,000 to 1,200
Increase = ((1,200 - 1,000) / 1,000) x 100 = 20%
Common Applications
- Salary raises and bonuses
- Investment returns
- Sales growth
- Price increases
- Performance improvements
Important Notes
The new value must be greater than the original for a true increase. If the new value is less, you have a decrease instead.
Quick Tips
- Double-check your inputs for accurate results
- Use parentheses to clarify order of operations
- Results are rounded — consider significant figures
Frequently Asked Questions
Subtract original from new value, divide by original, multiply by 100.
A negative result means there's a decrease, not an increase.
Yes, if the new value is more than double the original.
A 50% increase of 100 is 150.
Divide the increased value by (1 + percentage/100).
Yes, a 100% increase means the value has doubled.