# Percentage Increase Calculator

We see percentages very often in our day-to-day life. But, what do they mean, how did they come to be and how are they calculated? We hope to answer those questions. The percentage increase calculator can help you calculate how much a value has risen, in both absolute terms and percentages.

## What is the percentage increase?

It is common knowledge that things in our world change. When talking about things we can assign values to, when they change, we either say they increased or decreased in value. Very often, however, when they do increase or decrease, the change is expressed in percentages. So, what does “percentage increase” mean?

The percentage increase is used to describe how much a value has risen, by using fractions of 100. To explain it more clearly, 50% is half. If a value has risen by 50%, that means half of the initial value has been added to the initial value.

## Where is the percentage increase useful?

As we mentioned before, we see percentages almost every day. Why? Because it is a simple and well-known method. While it is easier to say half instead of 50%, the same can not be said for 27%, 56%, 73%, and so on.

So, where would this be the most useful? Obviously in business and finance. When talking about the price of market shares, or different currencies, percentages are almost always involved, because there is simply no other way to provide the right information.

## How to find the percentage increase?

There are a few steps you need to follow in order to find the percentage increase of something. First, you need to find how much the value increased in absolute terms. This is as simple as subtracting the initial value from the final value. Once you have done that, you need to take that result and divide it by the initial value. Finally, multiply that result, and you have calculated the percentage increase. Pretty neat, right?

## Percentage increase formula

If we were to put everything from the last subheading into a mathematical formula, we would get this:

Percentage increase = (final value - initial value)/initial value * 100

As an example, let’s say \$1 turned into \$1.50. Let’s calculate the percentage increase of that value.

Percentage increase = (\$1.50-\$1.00)/\$1.00 * 100
Percentage increase = \$0.50/\$1.00 * 100
Percentage increase = 0.5 * 100
Percentage increase = 50%

As we can see, the value has risen by 50%, or by half.

## Percentage increase rules

For percentage increase, there are a few rules that have to be followed. First and foremost, all numbers must be real, but, since you’re going to calculate percentage increases in the real world, this will not be an issue. The second rule is, if it’s a percentage increase, obviously, the final value has to be larger than the initial value, otherwise, it wouldn’t be an increase. If the initial value is equal to the final value, there was no change, or, the increase was 0%. However, if the final value is smaller than the initial value, we are talking about a percentage decrease.

A percentage decrease is calculated just like a percentage increase, except for the first step, Instead of subtracting the initial value from the final value, we subtract the final value from the initial value. If you do it the other way round, you will get a negative percentage value. That can be used, but most often positive percentages are used even for percentage decrease. However, you must make it clear that you are talking about a decrease if you’re not going to use a minus.

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