Percent increase and percent decrease
Percent change measures how far a value has moved relative to its starting amount. When the new value is larger, the result is positive and describes a percentage increase. A smaller new value gives a negative result, or percentage decrease.
Suppose a price rises from 80 to 100. The increase is 20, and the starting price is 80. The relative increase is 20 ÷ 80 × 100 = 25%. If the price moves from 100 down to 80, the decrease is 20%, because the starting value is now 100.
Enter the earlier value first and the later value second. The original, or initial value, is the denominator in the percent change formula. Reversing the inputs answers a different question.
Compare salary, prices or sales with the same formula
A salary changing from 2,000 to 2,200 rises by 10%. Monthly sales changing from 500 to 425 fall by 15%. The formula works for either example because each compares like-for-like amounts with a positive starting value.
Use the same currency, unit and time period for both inputs. Comparing one month’s revenue with a full year’s revenue will produce a mathematical result, but it will not describe a useful growth rate.
A move from 50 to 100 is 100% growth: the new value is twice the original. A move from 50 to 150 is 200% growth: the new value is three times the original. The percentage change is the increase divided by the original, rather than the new value divided by the original.
Percentage change, percentage difference and percentage points
Percentage change has a starting point. Percentage difference often compares two values without treating either one as the original; a common convention divides their absolute difference by their average. These calculations can produce different answers, so name the measure you need.
Percentage points describe the gap between two rates. A rate rising from 10% to 12% increases by 2 percentage points. Its relative percentage increase is 20%, since (12 − 10) ÷ 10 × 100 = 20. Read the percentage points explanation for more examples.
If you already know the rate and need a new amount, use the add or subtract a percentage app feature. This free page finds the unknown rate between two known amounts.