The percentage increase formula measures the growth or change of a value over time. It is commonly used in business, finance, and various other fields for tracking growth trends.
The Formula
Percentage Increase =
[
\frac{{{New Value} - {Original Value}}} / {{{Original Value}}} * 100
]
Simplified Steps:
-
Find the Increase:
( {Increase} = {New Value} - {Original Value} ).
-
Divide the Increase by the Original Value:
( {Result} = \frac{{Increase}} / {{Original Value}} ).
-
Convert to a Percentage:
Multiply the result by 100.
Examples
1. Stock Value Growth
- Scenario: A stock cost $5 in 2010 and $50 in 2015.
- Step 1: Calculate the increase: ( 50 - 5 = 45 ).
- Step 2: Divide by the original value: ( 45 / 5 = 9 ).
- Step 3: Convert to a percentage: ( 9 * 100 = 900\% ).
The stock's value increased by 900% over five years.
2. Employee Work Hours
- Scenario: Robert worked 95 hours in January and 110 hours in February.
- Step 1: Calculate the increase: ( 110 - 95 = 15 ).
- Step 2: Divide by the original value: ( 15 / 95 = 0.1579 ).
- Step 3: Convert to a percentage: ( 0.1579 * 100 = 15.79\% ).
Robert’s work hours increased by 15.79%.
Percentage Decrease Formula
When a value decreases over time, the formula becomes:
Percentage Decrease =
[
\frac{{{Original Value} - {New Value}}} / {{{Original Value}}} * 100
]
Example: Stock Value Decrease
- Scenario: A stock value dropped from $125 in 2018 to $50 in 2023.
- Step 1: Calculate the decrease: ( 125 - 50 = 75 ).
- Step 2: Divide by the original value: ( 75 / 125 = 0.6 ).
- Step 3: Convert to a percentage: ( 0.6 * 100 = 60\% ).
The stock’s value decreased by 60%.
Applications of the Formula?
-
Business Metrics:
Track revenue growth, budget changes, or customer satisfaction scores.
-
Finance:
Monitor stock prices, investment returns, and market trends.
-
Inventory Management:
Calculate inventory increases or decreases over time.
Pro Tips for Using the Formula
- Context Matters: Understand external factors (e.g., seasonal demand) that may influence results.
- Realistic Goals: Use the formula to set measurable growth targets based on historical data.
- Tool Usage: Incorporate software like Excel or online calculators for larger datasets.
With these steps, you'll confidently analyze trends and make informed decisions!