Percentages Made Easy: Formulas and Examples
Percentages appear everywhere: discounts, exam marks, salary raises, interest rates, tips and price changes. "Per cent" simply means "per hundred", so 15% means 15 out of every 100. Once you know the handful of formulas below, almost any percentage question becomes simple.
1. What is A% of B?
Result = A × B ÷ 100. Example: 15% of 200 = 15 × 200 ÷ 100 = 30.
2. A is what percent of B?
Percentage = A ÷ B × 100. Example: 30 is what percent of 200? 30 ÷ 200 × 100 = 15%. This is how exam scores are usually turned into percentages.
3. Percentage change from A to B
Change = (B − A) ÷ A × 100. A positive result is an increase; a negative one is a decrease. Example: a price rising from 80 to 100 is (100 − 80) ÷ 80 × 100 = 25% increase.
4. Increase or decrease a number by a percentage
Increase: B × (1 + A ÷ 100) and Decrease: B × (1 − A ÷ 100). Example: 200 increased by 15% is 230; decreased by 15% is 170.
A common trap
A 20% decrease followed by a 20% increase does not bring you back to where you started. 100 down 20% is 80, and 80 up 20% is 96. That's because the second percentage is applied to a smaller number. Keep this in mind when reading about prices or investments that fall and then recover.
Percent vs percentage points
If an interest rate goes from 5% to 6%, it has risen by one percentage point, but by 20% in relative terms. News and financial reports often mix these up, so it's worth checking which one is meant.