Percentage Increase Calculator
Given two values, a starting value and a final value, this percentage increase calculator computes the percentage by which the starting value increases to obtain the final value, as well as the difference between the starting and final values. It can also calculate the result of increasing a value by a specified percentage as well as the percentage a starting value is increased by when a given amount is added to it. To use this calculator, simply select the type of calculation, enter two values, and click the 'Calculate' button.
"Percentage increase" is a mathematical term used to express the change in a value as a proportion of its original amount. It is a measure of how much a specific value has grown, represented as a percentage. This concept is commonly used to measure the growth or expansion of quantities, enabling easy comparisons of changes across different values and contexts.
The percentage increase formula
To calculate percentage increase, two values are needed: the starting value (before the increase) and the final value (after the increase). The formula to determine percentage increase is:
This formula gives the result as a percentage, showing how much the starting value has increased to reach the final value. The "Starting Value" in the formula represents the baseline or starting point, and the "Final Value" is the result after the increase. By dividing the difference between the final and starting values by the starting value, you get a decimal that represents the proportionate increase. Multiplying this decimal by 100 converts it into a percentage, which is easier to understand and communicate.
Below are a few examples of applying the percentage increase formula to various real-life scenarios.
Example 1: Suppose you received a wage increase from $50 to $56 per hour. The following example shows how you would calculate the percentage by which your salary increased:
| Percentage Increase = |
|
× 100% | |||
| = | 12% | ||||
Example 2: Imagine your social media followers grew from 1,200 to 1,500 in a month. The following example shows how you would calculate the percentage increase of your followers over the month:
| Percentage Increase = |
|
× 100% | |||
| = | 25% | ||||
Example 3: Let's say the price of a stock increased from $35 to $42 in a week. The following example shows how you would calculate the percentage increase in the stock price:
| Percentage Increase = |
|
× 100% | |||
| = | 20% | ||||
In various fields such as business, finance, statistics, and daily life, the concept of percentage increase plays an important role, particularly in interpreting growth (or decline) over time. A few examples include the growth in a company's revenue, the rise in property prices, or the increase in your monthly expenses. Understanding how to calculate percentage increase helps quantify growth or change in a clear, understandable, and presentable format.
Real life applications of percentage increase
One example of a real-life application of percentage increase is inflation rate. The calculation of inflation rate is simply a calculation of percentage increase given that the starting value is the price of some good at an earlier time. The final value is the price of the good at the time you want to calculate the inflation rate. For example, given that the cost of a certain brand of 1 dozen eggs was $3.50 in 2019, and this brand of eggs costs $4.50 in 2025, the inflation rate between 2019 and 2025 can be calculated as the percentage increase in the price of these eggs:
| Percentage Increase = |
|
× 100% | |||
| ≈ | 29% | ||||
Based on this example, the inflation rate for this brand of egg between 2019 and 2025 is approximately 29%.