Working out the percentage change of two values can be confusing, but there is a method to the madness. In fact there are three methods to choose from, so you can pick the one you find easiest.
Let’s use an example to show you how.
The cost of a jacket went from $5 to $6. What is the percentage change in the price of the jacket?
Method 1
Step 1: Calculate the change (subtract old value from the new value)
Example: $6 - $5 = $1.
Step 2: Divide that change by the old value (you will get a decimal number)
$1 / $5 = 0.2
Step 3: Convert that to a percentage (by multiplying by 100 and adding a "%" sign)
0.2 x 100 = 20%
The percentage change in the price of the jacket is an increase of 20%.
(When the new value is greater than the old value, it is a percentage increase, otherwise it is a decrease.)
Method 2
Step 1: Divide the New Value by the Old Value (you will get a decimal number)
Example: $6 / $5 = 1.2
Step 2: Convert that to a percentage (by multiplying by 100 and adding a % sign)
1.2 x 100 = 120% (that is, $6 is 120% of $5)
Step 3: Subtract 100% from that
120% - 100% = 20%
The percentage change in the price of the jacket is an increase of 20%.
(When the result is positive it is a percentage increase, if negative, just remove the minus sign and call it a decrease.)
Method 3
You can also use this formula to work out the percentage calculation:
Here’s the formula used in the example:
