How to calculate percentage change
- Subtract the original value from the new value: new − original.
- Divide the result by the original value.
- Multiply by 100 to get a percentage. A positive result is an increase, a negative result a decrease.
Example: a price goes from 80 to 100. The difference is 20, and 20 ÷ 80 = 0.25, so the price rose by 25%.
Worked examples
| Original | New | Difference | Percentage change |
|---|---|---|---|
| 80 | 100 | +20 | +25% |
| 100 | 80 | −20 | −20% |
| 50 | 75 | +25 | +50% |
| 200 | 150 | −50 | −25% |
| 40 | 100 | +60 | +150% |
| 1.20 | 1.50 | +0.30 | +25% |
Why a rise and a fall of the same percentage don’t cancel out
Each percentage is measured from a different starting point. If a price rises 25% from 100 to 125, a 25% cut takes it to 93.75, not back to 100 — to get back you only need a 20% cut, because 25 is 20% of 125.
The same is true for losses: after a 50% fall, you need a 100% rise to get back to where you started.
Percentage change vs percentage points
When the values are themselves percentages, say which you mean. If an interest rate goes from 2% to 3%, it has risen by 1 percentage point — but by 50% in relative terms (1 ÷ 2 = 0.5). News reports and contracts usually use percentage points for rates.
Finding the original value
If you know the new value and the percentage change, divide the new value by (1 + change ÷ 100). A price of 120 after a 20% increase was 120 ÷ 1.20 = 100. A price of 60 after a 25% discount was 60 ÷ 0.75 = 80.