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How do you find the average percentage increase?

Published in Percentage Calculation 2 mins read

To find the percentage increase between two values, you need to calculate the difference, divide it by the original value, and then multiply by 100. Here's a breakdown:

Understanding Percentage Increase

Percentage increase measures how much a value has grown relative to its original amount. This is useful in various fields, including finance, sales, and statistics.

Formula for Percentage Increase

The general formula for finding percentage increase is:

*(New Value - Old Value) / Old Value 100**

Applying the Formula

  1. Find the Difference: Subtract the old value from the new value. This tells you the amount of the increase.
  2. Divide by the Old Value: Take the difference you calculated in step 1 and divide it by the original (old) value.
  3. Multiply by 100: Multiply the result from step 2 by 100 to express the increase as a percentage.

Example: Calculating Price Increase

Let's say you are tracking a price increase. According to the provided reference, you would use the following method:

  • Suppose the old price of an item was $20, and the new price is $25.

    • Difference: $25 - $20 = $5
    • Divide by Old Price: $5 / $20 = 0.25
    • Multiply by 100: 0.25 * 100 = 25%

    Therefore, the price increased by 25%.

Table: Percentage Increase Calculations

Scenario Old Value New Value Calculation Percentage Increase
Price $20 $25 ($25 - $20) / $20 * 100 25%
Sales 100 120 (120 - 100) / 100 * 100 20%
Website Visits 500 600 (600 - 500) / 500 * 100 20%

Handling Percentage Decrease

If a value decreases, the formula is slightly modified:

*(Old Value - New Value) / Old Value 100**

For example, if a price decreased from $25 to $20:

  • Difference: $25 - $20 = $5
  • Divide by Old Price: $5 / $25 = 0.20
  • Multiply by 100: 0.20 * 100 = 20%

Therefore, the price decreased by 20%.

Summary

In summary, to calculate the average percentage increase:

  1. Subtract the original value from the new value.
  2. Divide that result by the original value.
  3. Multiply that result by 100. This yields the percentage increase.

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