How to Calculate Percentages
Percentage literally translates to "per 100" and is a number or ratio expressed as a fraction of 100. It is often denoted using the percent sign %.
Common Percentage Formulas
1. Finding the percentage of a number (What is P% of V?)
To find the percentage of a specific value, you multiply the value by the percentage, and then divide by 100.
Result = (P / 100) * V
Example: 20% of 50 = (20 / 100) * 50 = 10
Example: 20% of 50 = (20 / 100) * 50 = 10
2. Percentage difference / change (X to Y)
When you want to calculate the percentage increase or decrease between two numbers, you compare the absolute difference to the original starting value.
Change = ((New Value - Old Value) / Old Value) * 100
Example: Change from 40 to 50 = ((50 - 40) / 40) * 100 = 25% Increase
Example: Change from 40 to 50 = ((50 - 40) / 40) * 100 = 25% Increase
Common Use Cases
- Retail & Shopping: Quickly calculating the final price of an item after a 30% discount is applied.
- Finance & Investing: Determining the absolute yield percentage of a stock portfolio over a 12-month period based on starting and ending balances.
- Business: Calculating profit margins based on wholesale vs retail pricing.