How to Calculate Percentage Increase [Detailed Explaination]

Tracking the percentage growth is a straightforward and important skill, we use this in our day-to-day work life. Like calculating sales growth, any financial analysis, simply comparing two values.

So we have to understand how the actual calculation works.

There are 3 important steps to calculating a percentage increase :

1. Find the difference between 2 number

Increase = New Value - Original Value

2. Divide the increase by the original value

Fractional Increase = Increase / Original Value

3. Now Multiply the fractional increase with 100

Percentage Increase = (Increase / Original Value) × 100

Now let's understand this with one maths problem

Question: Mayank wants to analyze his company's sales data. Last year his company made $50,000, and this year his company made $60,000, so how much percentage did Mayank's company make the growth?

Answer:

As per the method above Increase value = $60,000 - $50,000 = $10,000 Increase in fraction = $10,000/$50,000 = 1/5 = 1/5 x 10/10 = 2/10 = 0.2 Percentage increase = 0.2 x 100 = 20%

So the growth of Mayank's company was 20% more than last year.

Checkout the tool here : Percentage Increase Calculator