To calculate the percentage increase, you will need to follow three simple steps:
Note: If the result is negative, then you had a decrease, not an increase.
You can also use the free percent increase calculator by filling in the initial value and the end value.
Calculating percentage increases helps identify how a value changed over time. Otherwise said it helps to compare increases in different time periods, estimate growth rates (yearly, monthly, daily, etc.), or evaluate changes from an old situation to a new one, such as comparing a new salary, cost, level, inflation, time, or rate to a previous amount.
The formula to calculate the percentage increase is the following:
Percentage increase = (Final value – Initial value)/Initial value × 100
Example 1: Price increase calculation
Your favorite watch cost $250 last quarter. The watch now costs $300. What is the percentage increase in price for the price since the last quarter?
Let’s use the formula we’ve explained above.
Percentage increase (%)= (Final value - Initial value) /Initial value × 100
This means that the price of the favorite watch has increased by 10% since last quarter.
Example 2: New salary vs old salary
Your salary used to be 48,000 yearly when you were hired. Now it's 52,000 yearly. What is the percentage increase of your salary?
Percentage increase (%)= (Final value - Initial value) /Initial value × 100
Which means that your salary had incread with 8.33% since you were hired.
There are times when you would like to calculate the increase of a number, cost, or distance by a specific percentage. In such situations, to increase the number by a percentage, use this formula:
Final value = Initial value + Initial value * Percentage(%) increase / 100
Alternative,
Final Value = Initial Value × (1 + Percentage Increase / 100)
Example 1: Garage cost increase by percent
A supplier said the cost for building a garage costs $2,000 today, yet from next year, due to the increase in building materials and labor costs, the cost to build the garage will be 20% higher. What will be the price of the garage next year?
Let's start with the formula mentioned above
Final Value = Initial Value × (1 + Percentage Increase / 100)
$2,000 x (1 + 20/100)
$2,000 x (1 + 0.20)
$2,000 x 1.20
$2,400
Therefore, the cost of building the garage will be $2,400.
Example 2: Salary hike increase by percent
You are the manager of a company and look to increase by 12% the salary of a performer employee in your company. His salary is currently $75,000. What will be the new salary?
Final Value = Initial Value × (1 + Percentage Increase / 100)
$75,000 x (1 + 12/100)
$75,000 x (1 + 0.12)
$75,100 x 1.12
$84,000
$84,000 will be the salary of an employee after a 12% increase from $75,000.
Related calculators: