Calculating percentage increases is a fundamental skill in both personal finance and business, but it can sometimes be tricky to get it right. Whether you’re tracking growth in sales, measuring the rise in prices, or comparing salary changes, understanding how to calculate percentage increases is essential. This guide will break down the process, making it easy to compute percentage increases quickly and accurately, whether you’re working with simple numbers or complex data. By the end of this article, you’ll be equipped with the knowledge and tools to handle percentage calculations with confidence.

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How to Calculate Percentage Increase:

1. Subtract the starting value from the final value.
2. Divide the result by the absolute value of the starting value.
3. Multiply by 100 to convert to a percentage increase. Note: If the result is a negative number, it indicates a decrease rather than an increase.

Example Problem: Calculating the Percentage Increase

Last year, a particular model of smartphone was priced at $500. This year, the price has increased to $575. Let’s calculate the percentage increase in price from last year to this year.

1. Subtract the Starting Value from the Final Value:
   575 – 500 = 75
2. Divide the Difference by the Absolute Value of the Starting Value:
   75 / 500 = 0.15
3. Multiply by 100 to Convert to a Percentage:
   0.15 × 100 = 15%

Therefore, the price of the smartphone increased by 15% from last year to this year.

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