askvity

How do you calculate reverse calculation?

Published in Percentage Calculations 3 mins read

Reverse calculation, also known as working backwards, involves determining the original value before a percentage increase or decrease was applied. It's essentially undoing the percentage change. Here's how to calculate it:

Steps to Calculate Reverse Percentage:

  1. Determine the resulting percentage: If the problem states a percentage increase, add that percentage to 100%. If it states a percentage decrease, subtract that percentage from 100%. This tells you what percentage of the original value you now have.

  2. Find 1%: Divide the new value (the value after the percentage change) by the percentage you calculated in step 1. This gives you the value of 1% of the original amount.

  3. Calculate the original value (100%): Multiply the value of 1% (from step 2) by 100. This gives you the original value before the percentage change.

Example 1: Reverse Calculation with a Percentage Increase

Let's say a shirt costs \$33 after a 10% price increase. What was the original price?

  1. Determine the resulting percentage: 100% (original price) + 10% (increase) = 110%
  2. Find 1%: \$33 / 110 = \$0.30
  3. Calculate the original value (100%): \$0.30 * 100 = \$30

Therefore, the original price of the shirt was \$30.

Example 2: Reverse Calculation with a Percentage Decrease

A shop is selling a television for \$360 after applying a 20% discount. What was the original price?

  1. Determine the resulting percentage: 100% (original price) - 20% (discount) = 80%
  2. Find 1%: \$360 / 80 = \$4.50
  3. Calculate the original value (100%): \$4.50 * 100 = \$450

Therefore, the original price of the television was \$450.

Formula Summarization:

Let:

  • New Value = The value after the percentage change
  • Original Value = The value before the percentage change
  • Percentage Change = The percentage increase or decrease (expressed as a decimal)

If there is an increase:

  • Original Value = New Value / (1 + Percentage Change as a decimal)

If there is a decrease:

  • Original Value = New Value / (1 - Percentage Change as a decimal)

Common Pitfalls to Avoid:

  • Incorrectly Adding/Subtracting: Make sure you are adding for an increase and subtracting for a decrease.
  • Dividing by the Wrong Value: Always divide the new value by the adjusted percentage (either 100% + increase or 100% - decrease). Do not divide by the original percentage change alone.
  • Incorrectly Converting Percentage to Decimal: If using formulas, divide the percentage by 100 to get a decimal (e.g., 10% becomes 0.10).

Reverse calculation involves understanding how percentages affect original values and applying the correct steps to "undo" the change, ultimately revealing the starting amount.

Related Articles