Percentage Calculations Explained: Percent Change, Percentage Points, Stacked Discounts and VAT
How much did sales grow? What is the sale price? Did the interest rate rise by a percent or a percentage point? Percentages look simple, but choosing the wrong base changes the answer.
A percentage is a ratio expressed per hundred. Every percentage calculation comes down to choosing the right base (the denominator), and most everyday cases fit one of these four.
① What is B% of A? A × B ÷ 100 (15% of 80,000 = 12,000)
② A is what % of B? A ÷ B × 100 (12 ÷ 48 × 100 = 25%)
③ Change from A to B (B − A) ÷ A × 100 (200 → 250 = +25%)
④ A increased/decreased A × (1 ± B ÷ 100) (50,000 + 20% = 60,000)
The four basic percentage formulas, percent versus percentage points, why 20% off plus 10% off is not 30%, and how to back out tax from a gross price.Read guide →