How to Calculate Percentage Increase (With Examples)

Percentage increase is a common way to measure growth over time—whether in sales, population, income, or even grades. Understanding how to calculate it allows you to clearly express how much something has grown in relative terms.

Percentage Increase = ((New Value - Original Value) / Original Value) × 100

Example 1: Basic Percentage Increase

If a product's price increases from $50 to $65, what is the percentage increase?

  Increase = 65 - 50 = 15
  Percentage Increase = (15 / 50) × 100 = 30%
  

Example 2: Salary Increase

Your salary increased from $2,500 to $3,000. What's the percentage increase?

  Increase = 3,000 - 2,500 = 500
  Percentage Increase = (500 / 2,500) × 100 = 20%
  

Real-Life Applications

• Finance: Track profit or investment growth.
• Business: Compare monthly or yearly revenue increases.
• Education: Analyze student progress based on grades.
• Marketing: Measure increase in website traffic or sales conversions.

Practice Questions

1. A stock rises from $80 to $100. What is the percentage increase?
2. Your electricity bill increased from $120 to $150. By what percent?
3. A population grows from 5,000 to 6,500. What's the percentage change?

Answers:

• 25%
• 25%
• 30%

Summary

Percentage increase is a simple yet powerful way to describe growth. By subtracting the old value from the new, dividing by the original, and multiplying by 100, you can find how much something has increased in relative terms.

Percentage Increase = ((New - Original) / Original) × 100

Mastering this formula helps in analyzing trends, making better decisions, and clearly communicating change.