How to Calculate Percent Increase

Understanding how to calculate percent increase is a valuable skill in both personal finance and business. Whether you’re tracking your savings, monitoring your investments, or evaluating sales growth, knowing this calculation helps you make informed decisions.

Here’s a simple step-by-step guide to calculating percent increase:

Steps to Calculate Percent Increase

1. Identify the Original Value and the New Value

First, determine the original value and the new value. For example, let’s say you want to calculate the percent increase in your monthly savings. Last month, you saved $200 (original value), and this month you saved $250 (new value).

2. Subtract the Original Value from the New Value

Calculate the difference between the new value and the original value.

Increase = New Value - Original Value

In our example:

250 - 200 = 50

3. Divide the Increase by the Original Value

Next, divide the increase by the original value to get the relative increase.

Increase Ratio = Increase / Original Value

Using our values:

50 / 200 = 0.25

4. Multiply by 100 to Get the Percent Increase

Finally, multiply the relative increase by 100 to convert it to a percentage.

Percent Increase = Increase Ratio * 100

In our example:

0.25 * 100 = 25%

So, the percent increase in your savings is 25%.

Conclusion

Calculating percent increase is a straightforward process that helps you understand growth or changes in values over time. Use this method to track your financial progress, business growth, and more, ensuring you make informed and effective decisions.