This guide explains how to calculate percentage change between two numbers. It provides a step-by-step guide with a relatable scenario to help readers understand the concept.
Calculating percentage increase between two numbers is straightforward.
To calculate the percentage change between two numbers, find the difference between the final and initial number. This difference represents the increase (if positive) or decrease (if negative). Now, divide that difference by the starting number and multiply by 100 to express the change as a percentage relative to the starting point.
For instance, if your salary went from $2000 to $2400, you experienced a 20% increase (2400-2000)/2000)*100 = 20%. Conversely, if the price of a shirt dropped from $50 to $40, there’s a 20% decrease ((40-50)/50)*100 = -20%).
Let’s understand it step by step with a relatable scenario:
Imagine you’re tracking your budget and want to see how your grocery bill has changed. Here’s how to calculate the percentage increase or decrease:
- Find the difference: Subtract the original amount (starting point) from the current amount (ending point). A positive result means an increase, while a negative result means a decrease.
- Relate it to the starting point: Divide the difference you just found by the original amount (starting point) and multiply by 100. This expresses the change as a percentage relative to what you started with.
For example, if your grocery bill went from $100 last month to $120 this month, that’s a difference of $120 – $100 = $20. To find the percentage increase, divide $20 by $100 (original amount) and multiply by 100, resulting in a 20% increase.
Conversely, if your phone bill went down from $50 to $40, the difference is -$10 (negative because it’s a decrease). Divide -$10 by $50 (original amount) and multiply by 100 to get -20%, indicating a 20% decrease.
Check out helpful percentage calculators: Calculators, Percentage Calculator