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Knowing how to calculate the percentage increase will be quite useful in many different situations. Even every time you watch the news, you will often hear about large changes in numbers without even knowing the percentages to better understand them. If you calculate the percentage increase and discover that it is only 2%, you will know that you shouldn’t believe stories that are just scaremongering.

## Steps

### Calculate percentage increase

**Write down the start and end values.**For example, let’s say your car insurance costs go up. You should write down the following values:

- Your car insurance premium is
**400,000 VND**before the price increase. This is the initial value. - After the price increase, it is priced at
**450,000 VND**. This is the final value.

**Determine the increase.**Subtract the former from the latter to determine the gain.

^{[1] XResearch Source}At this point, we’re still working with regular numbers, not percentages.

- In the above example, 450,000 VND – 400,000 VND =
**an increase of 50,000 VND**.

**Divide the answer by the initial value.**Percentages are just a special form of fractions. For example, “5% of doctors” is a quick spelling of “5 out of 100 doctors”. By dividing the answer by the initial value, we have turned it into a fraction that represents the comparison between the two values.

- In the above example,
^{50,000 VND}/_{400,000 VND}=**0.125**.

**Multiply the result by 100.**This method will help convert your final answer into a percentage.

- The end result for our example is 0.125 x 100 =
**12.5% increase in car insurance costs**.

### Alternative method

**Write down the start and end values.**Start with a new example. The world population increased from 5,300,000.00 people in 1990 to 7,400,000,000 in 2015.

- To solve the problem with many zeros, you can follow the following small trick. Instead of counting every zero in each step, we can rewrite them as
**5.3 billion**and**7.4 billion**.

**Divide the end value by the beginning value.**This measure will tell us how different the final result is from the original number.

^{[2] XResearch Source}

- 7.4 billion ÷ 5.3 billion = about
**1.4**. - We will round off the result so that two significant figures are left, since this is the number that the original problem posed.

**Multiply by 100.**This way you will get the percentage between the two values. If the value increases (instead of decreasing), your result will always be greater than 100.

- 1.4 x 100 =
**140%**. This means that the world population in 2015 increased by 140% compared to the population in 1990.

**Subtract by 100.**In this problem, “100%” is the size of the original value. By excluding it from our answer, we are left with a percentage increase in value.

- 140% – 100% =
**40% increase in population**. - The reason is because start value + increment value = end value . Rearrange the equation and we will have increment = end value – start value .

## Advice

- The percentage increase tells you about the
**correlation**change, which means the amount of increase in value relative to the starting value. Egg price increase by about 100,000 VND will be quite a lot. But a house price increase of 100,000 VND is only a relatively small correlation. - You can calculate the percentage reduction using the same method. You will get a negative result indicating that the value is getting smaller.
- The increased value is also known as the
**absolute**change, which means the actual quantity is described.^{[3] XResearch Source}Egg prices and house price increases of 100,000 VND have the same**absolute**value.

wikiHow is a “wiki” site, which means that many of the articles here are written by multiple authors. To create this article, 34 people, some of whom are anonymous, have edited and improved the article over time.

This article has been viewed 88,923 times.

Knowing how to calculate the percentage increase will be quite useful in many different situations. Even every time you watch the news, you will often hear about large changes in numbers without even knowing the percentages to better understand them. If you calculate the percentage increase and discover that it is only 2%, you will know that you shouldn’t believe stories that are just scaremongering.

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