Guide

How to Calculate Percentage Increase

Learn the formula for percentage increase and work through a simple example.

Key idea

Learn the formula for percentage increase and work through a simple example.

Formula or method

Percentage increase = (new value − original value) ÷ original value × 100.

Worked example

Start with the values in your question, substitute them into the formula, and keep the units consistent. For example, if a rate is given as 15%, use 0.15 when a formula requires a decimal.

Common mistakes

  • Mixing percentage points with percentage change.
  • Using different units for the same calculation.
  • Rounding too early when several steps are involved.
Tip: Use the matching AvyTool calculator to check your result after working through the method.

Why the result can differ

Real-world calculations can include assumptions, rounding, fees, tax rules, calendar conventions, or other details. Treat simple calculator results as estimates when the underlying situation is more complex.

Choosing the correct starting value

Percentage increase always uses the original value as the reference. If a price moves from 80 to 100, the increase is 20 and the percentage increase is 20 ÷ 80 × 100 = 25%. Using 100 as the denominator would answer a different question.

Percentage points versus percentage increase

For rates, distinguish a change in percentage points from a percentage change. Moving from 10% to 15% is an increase of 5 percentage points, while the relative increase is 50% because 5 is half of the original 10.

Quick check

After calculating, ask whether the denominator represents the original value. That single check catches many percentage-change errors.

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