How to Calculate Percentage Increase Between Two Numbers
Math

How to Calculate Percentage Increase Between Two Numbers

Back to Blog11/8/20255 min readBy AllProCalculator Team

How to Calculate Percentage Increase Between Two Numbers

!Mathematics and calculations

Whether you're calculating a salary raise, investment return, or price inflation, knowing how to calculate percentage increase is a fundamental life skill. The formula is simple, but common mistakes can lead to incorrect results.

In this guide, we'll cover the formula, provide worked examples, and help you avoid confusion. For instant calculations, use our Percentage Calculator.

The Percentage Increase Formula

`` Percentage Increase = ((New Value - Old Value) / Old Value) × 100 `

Or expressed differently:

` Percentage Increase = ((Final - Initial) / Initial) × 100 `

The Three-Step Process

  • Calculate the difference: New Value - Old Value
  • Divide by original: Difference ÷ Old Value
  • Multiply by 100: Convert to percentage
  • 5 Quick Examples

    Example 1: Salary Increase

    Your salary increased from ₹50,000 to ₹55,000.

    ` Percentage Increase = ((55,000 - 50,000) / 50,000) × 100 Percentage Increase = (5,000 / 50,000) × 100 Percentage Increase = 0.10 × 100 Percentage Increase = 10% ` Your salary increased by 10%.

    Use our Salary Hike Calculator for more complex calculations.

    Example 2: Stock Price

    A stock went from ₹120 to ₹156.

    ` Percentage Increase = ((156 - 120) / 120) × 100 Percentage Increase = (36 / 120) × 100 Percentage Increase = 0.30 × 100 Percentage Increase = 30% ` The stock increased by 30%.

    Example 3: Website Traffic

    Your website visitors grew from 5,000 to 8,500 per month.

    ` Percentage Increase = ((8,500 - 5,000) / 5,000) × 100 Percentage Increase = (3,500 / 5,000) × 100 Percentage Increase = 0.70 × 100 Percentage Increase = 70% ` Traffic increased by 70%.

    Example 4: Investment Return

    You invested ₹1,00,000 and it's now worth ₹1,35,000.

    ` Percentage Increase = ((1,35,000 - 1,00,000) / 1,00,000) × 100 Percentage Increase = (35,000 / 1,00,000) × 100 Percentage Increase = 0.35 × 100 Percentage Increase = 35% ` Your investment gained 35%.

    For annualized returns, use our CAGR Calculator.

    Example 5: Price Increase

    A product's price went from ₹499 to ₹599.

    ` Percentage Increase = ((599 - 499) / 499) × 100 Percentage Increase = (100 / 499) × 100 Percentage Increase = 20.04% ` The price increased by approximately 20%.

    Percentage Decrease Formula

    For decreases, the formula is the same, but you'll get a negative result (or drop the negative sign and call it "decrease"):

    ` Percentage Decrease = ((Old Value - New Value) / Old Value) × 100 ` Example: Price dropped from ₹1,000 to ₹800 ` Percentage Decrease = ((1,000 - 800) / 1,000) × 100 Percentage Decrease = (200 / 1,000) × 100 Percentage Decrease = 20% ` The price decreased by 20%.

    Use our Discount Calculator for shopping discounts.

    Common Mistakes to Avoid

    Mistake 1: Dividing by the New Value

    Wrong: (55,000 - 50,000) / 55,000 × 100 = 9.09% Correct: (55,000 - 50,000) / 50,000 × 100 = 10%

    Always divide by the original (old) value.

    Mistake 2: Confusing Percentage Points with Percentage

    If interest rates go from 5% to 7%:

    • Percentage Points Increase: 7% - 5% = 2 percentage points
    • Percentage Increase: ((7 - 5) / 5) × 100 = 40%
    These are very different! The rate increased by 40% (or 2 percentage points).

    Mistake 3: Not Converting Decimals

    Remember to multiply by 100 to convert the decimal to a percentage:

    • 0.25 is not 0.25% — it's 25%
    • 1.50 is not 1.50% — it's 150%

    Mistake 4: Percentage of Percentage

    If something increases by 50% and then increases by another 50%, the total increase is NOT 100%.

    Example: ₹100 → 50% increase → ₹150 → 50% increase → ₹225

    Total increase: ((225 - 100) / 100) × 100 = 125%

    Reverse Calculation: Finding the Original Value

    If you know the new value and the percentage increase:

    ` Original Value = New Value / (1 + Percentage/100) ` Example: After a 25% increase, the price is ₹500. What was the original? ` Original = 500 / (1 + 25/100) Original = 500 / 1.25 Original = ₹400 `

    Learn more reverse calculations in our GST Reverse Calculation guide.

    Excel Formulas

    Percentage Increase

    `excel =((B2-A2)/A2)*100 `

    Or simply:

    `excel =(B2-A2)/A2 ` (Format cell as percentage)

    Finding New Value from Percentage

    `excel =A2*(1+B2/100) ``

    Where A2 is original value and B2 is percentage increase.

    When to Use Different Methods

    SituationUse This
    Simple percentage increaseBasic formula
    Multi-year investment returnsCAGR Calculator
    Comparing to different baselinesPercentage points
    Salary negotiationSalary Hike Calculator
    Discount shoppingDiscount Calculator

    Frequently Asked Questions

    What's the difference between percentage and percent?

    They mean the same thing. "Percent" comes from Latin "per centum" (per hundred). Both are correct.

    How do I calculate overall percentage from multiple increases?

    Multiply the factors:

    • 10% increase = multiply by 1.10
    • 20% increase = multiply by 1.20
    • Combined: 1.10 × 1.20 = 1.32 = 32% total increase

    Can percentage increase exceed 100%?

    Absolutely! If a stock goes from ₹100 to ₹300, that's a 200% increase (or 3x the original value).

    How do I calculate percentage change year-over-year?

    Use the same formula with year 1 as original and year 2 as new value. For multiple years, see our CAGR Calculator.


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