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Knowing how to calculate the percentage increase will be quite useful in many different situations. Even every time you watch the news, you will often hear about large changes in numbers without even knowing the percentages to better understand them. If you calculate the percentage increase and discover that it is only 2%, you will know that you shouldn’t believe stories that are just scaremongering.
Steps
Calculate percentage increase
- Your car insurance premium is 400,000 VND before the price increase. This is the initial value.
- After the price increase, it is priced at 450,000 VND . This is the final value.
- In the above example, 450,000 VND – 400,000 VND = an increase of 50,000 VND .
- In the above example, 50,000 VND / 400,000 VND = 0.125 .
- The end result for our example is 0.125 x 100 = 12.5% increase in car insurance costs .
Alternative method
- To solve the problem with many zeros, you can follow the following small trick. Instead of counting every zero in each step, we can rewrite them as 5.3 billion and 7.4 billion .
- 7.4 billion ÷ 5.3 billion = about 1.4 .
- We will round off the result so that two significant figures are left, since this is the number that the original problem posed.
- 1.4 x 100 = 140% . This means that the world population in 2015 increased by 140% compared to the population in 1990.
- 140% – 100% = 40% increase in population .
- The reason is because start value + increment value = end value . Rearrange the equation and we will have increment = end value – start value .
Advice
- The percentage increase tells you about the correlation change, which means the amount of increase in value relative to the starting value. Egg price increase by about 100,000 VND will be quite a lot. But a house price increase of 100,000 VND is only a relatively small correlation.
- You can calculate the percentage reduction using the same method. You will get a negative result indicating that the value is getting smaller.
- The increased value is also known as the absolute change, which means the actual quantity is described. [3] X Research Source Egg prices and house price increases of 100,000 VND have the same absolute value.
wikiHow is a “wiki” site, which means that many of the articles here are written by multiple authors. To create this article, 34 people, some of whom are anonymous, have edited and improved the article over time.
This article has been viewed 88,923 times.
Knowing how to calculate the percentage increase will be quite useful in many different situations. Even every time you watch the news, you will often hear about large changes in numbers without even knowing the percentages to better understand them. If you calculate the percentage increase and discover that it is only 2%, you will know that you shouldn’t believe stories that are just scaremongering.
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