Percentage of increase, Percent Increases, Decreases, Changes, Basic Mathematics

Questions like, “What would we make if we increased our revenue by 25%?” or, “How much stock would remain if we decreased our current balance by 30%?” are typical in today‟s environment. We frequently want to know what the result would be if we increase or decrease a value by a certain percent. We also often know that a measurement has changed from one value to another, and want to answer the question, “By what percent has it changed?” It is important to keep clearly in mind just what it is that you want to know when working with percents. We will start by reviewing how to calculate the result of a specific percent increase or decrease. It is very important to realize that we do not calculate percent increase and percent decrease the same way.

Percent Increase - How to calculate percentage of Increase?

To calculate the result after a specified percent increase, follow these three steps:

Step 1. Convert the percent of increase to a decimal by moving the decimal point two places to the left.

Step 2. Add 1 to the result of step 1.

Step 3. Multiply the initial value by the result of step 2.

Examples,

1. Find the result when 500 is increased by 30%

Step 1. 30% = .30

Step 2. 1 + .30 = 1.30 Step 3. 1.30 • 500 = 650

2. An activity had revenue of $5.47M last fiscal year (FY). What will their revenue be for this FY if they reach their goal of a 6% increase? Step 1. 6% = .06

Step 2. 1 + .06 = 1.06

Step 3. 1.06 • $5.47M = $5.7982M = $5,798,200

3. Find the result when 30 is increased by 250%

Step 1. 250% = 2.50

Step 2. 2.5 + 1 = 3.50 Step 3. 3.50 • 30 = 105

Percent Decrease - How to calculate percentage of Decrease?

To calculate the result after a specified percent decrease, follow these three steps:

Step 1. Convert the percent of decrease to a decimal by moving the decimal two places to the left.

Step 2. Subtract the result of Step 1 from 1.

Step 3. Multiply the result of Step 2 times the number you want to decrease.

Examples,

1. Find the result when 500 is decreased by 30%

Step 1. 30% = .30

Step 2. 1 – .30 = .70

Step 3. .70 • 500 = 350

2. An activity had expenses of 5.47M last fiscal year (FY). What will their expenses be for this FY if they reach their goal of a 6% decrease?

Step 1. 6% = .06

Step 2. 1 - .06 = .94

Step 3. .94 • $5.47M = $5.1418M = $5,141,800

Percent Change - How to calculate percentage Change?

When a quantity or measurement has changed from an initial value to a final value, follow these steps to find out by what percent the value has changed.

Step 1. Find the amount of the change by subtracting the initial value from the final value.

Step 2. Divide the amount of the change from step 1 by the initial value, and multiply by 100 to change the fraction to a percent.

Examples,

1. The price of an item has changed from an original price of $40 to a current price of $50. What is the percent change?

Step 1. Calculate amount of change Final Value – Initial value $50 - $40 = $10

Step 2. Calculate percent of change Amount of change ÷ Initial value • 100 $10 ÷ $40 • 100 = 25% Note that the change has a positive sign, reflecting a 25 percent increase.

2. Total orders for June of last year was $16,000. For June of this year, orders totaled $13,600. What is the percent change from last year to this?

Step 1. Calculate amount of change Final value – initial value $13,600 - $16,000 = -$2,400

Step 2. Calculate percent of change Amount of change ÷ Initial value • 100 -$2,400 ÷ $16,000 • 100 = -15% Note that the change has a negative sign, reflecting a 15 percent decrease.