How to Calculate Percentage Increase Between Two Numbers
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
| Situation | Use This |
|---|---|
| Simple percentage increase | Basic formula |
| Multi-year investment returns | CAGR Calculator |
| Comparing to different baselines | Percentage points |
| Salary negotiation | Salary Hike Calculator |
| Discount shopping | Discount 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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